Profit taking in Big Tech is pushing Wall Street lower

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Wall Street recorded most of the day with green numbers. The S & P500 index even flirted with its previous closing record of February 19, but profit-taking in the technology sector closed the stock market gauge 0.8 percent lower.

Popular technology stocks fell almost without exception, with significant losses for Microsoft (-2.3%), Amazon (-2%), Netflix (-3.4%) and Apple (-3%). The Nasdaq Composite closed 1.7 percent lower. The Dow Jones limited the loss to 0.4 percent.

The gold price also fell sharply. An ounce of gold became 4.5 percent cheaper to $ 1,932.

Earlier in the day, there was optimism that Republicans and Democrats would reach a compromise on a new stimulus package. In addition, investors took to the hope that the capital gains tax on shares will decrease. President Donald Trump said he is considering a measure to reduce the tax.



We are considering a reduction in the capital gains tax. That would create many jobs.

Donald Trump

American president

The president can’t just cut the 20 percent tax without the help of Congress. But through an executive order, Trump could reduce the tax base, particularly by raising the original purchase price with inflation. In this way there is less added value, and therefore less taxes. Trump said the cut would create more jobs.

Sysco

The wholesale concern Sysco

fell 1.4 percent. The company presented its results for the fourth quarter of its broken fiscal year.

Revenue thundered 42.7 percent to $ 8.9 billion and gross profit fell 47.4 percent to 1.6 billion. Net the company even plunged into minus. Earnings per share fell by $ 1.39, leaving a loss of $ 0.29 per share.

The CEO is nevertheless satisfied with the results. Although the coronavirus had a significant impact on the fourth quarter results, we responded quickly by strengthening our balance sheet and attracting a new target audience of customers. In addition, we prepare for a return of demand. We are confident that the transformative steps we have taken will help us as we emerge from the crisis. ‘

As a wholesaler, the group is feeling the impact of the corona crisis, because the quarantine measures – and consumers’ fear of getting the virus – reduced restaurant visits. If Americans eat out less often, restaurants will sell less food and will stock less at Sysco.

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