Tech leads the downfall as intraday turnaround did not last. LV beats market forecasts but not such good news for Givaudan and AZZ.

Finishing Tuesday’s trading session, the S&P 500 fell as an intraday turnaround did not last very long. Comments from the hawkish Fed pointing to the need of tightening monetary policy boosted yields but weighed on stocks. The S&P 500 fell 0.91%, the Dow was down 0.1% and Nasdaq was down 1.5% (investing.com). 

Tech has led today’s downfall, but investors continue to sit tight on the dip buying as the beliefs that the trend of increasing Treasury yields may continue.

President Loretta Mester at the Federal Reserve bank of Cleveland made comments on the need for monetary policy to become more restrictive, in order to put inflation on a downward path to 2%. The comments come just ahead of Thursday’s inflation report that is assumed to confirm the will increase interest rates by a further 75 basis points for the fourth consecutive time (investing.com).

French luxury brand Louis Vuitton beat the forecast in Q3, posting a sharp increase in sales as wealthy shoppers emptied their wallets on fashion and Americans in Europe made the most of the strong dollar. Q3 sales came to 19.8 billion euros, up 19% on a comparable basis from the prior year beating market expectations (reuters.com). 

Swiss fragrance and flavour make Givaudan announced that sales growth slowed in Q3, particularly North America regarding its flavour business as it fell 2.8%. Sending shares down by more than 6% (investing.com). However, overall sales in its taste and wellbeing department rose by 6.4% to 2.969 billion francs, while sales in the beauty and fragrance unit increased by 5.8% to 2.489 billion francs (investing.com). 

To finalise, AZZ Inc released Quarter 2 EPS of $1.24, which was $0.14 worse than the market forecast of $1.38. Revenue for the quarter also was reported lower than expected, coming in at $406 million compared the estimate of $470 million (investing.com).