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Wall Street Opens Lower as Chipmakers Sag on TSMC Outlook; Dow Down 100 Pts

Stock MarketsJul 15, 2021 09:47AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened lower on Thursday, with semiconductor names underperforming after one of the world's biggest chipmakers said an end to the current supply squeeze was on the horizon. 

Taiwan Semiconductor Manufacturing (NYSE:TSM) CEO CC Wei told analysts on a call that he expected chip deliveries to carmakers in particular to pick up sharply in the current quarter and over the rest of the year. The news was seen as spelling an end to the windfall that chipmakers have enjoyed in the first six months of 2021. Auto production fell 6.6% in June due to chip shortages, the Federal Reserve said in its monthly report on industrial production. That ensured that overall production growth fell short of expectations at only 0.4%.

TSM shares were among the biggest losers in early trading, falling 5.5%, but other chipmakers suffered too: NXP Semiconductors (NASDAQ:NXPI) stock fell 4.5%, Nvidia (NASDAQ:NVDA) stock fell 1.9% and Intel (NASDAQ:INTC) stock fell 1.3%.

By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was down 102 points, or 0.3%, at 34,830 points. The S&P 500 was also down 0.3% and the Nasdaq Composite was down 0.4%

Netflix (NASDAQ:NFLX) stock gained a modest 0.8%, after making a hire that suggests it wants to add videogame streaming to its platform. Analysts expressed skepticism that the owners of the most popular video game franchises would be willing to allow it onto their turf. The stock nonetheless also got an upgrade from analysts at UBS, on the view that new subscriptions will start accelerating again.

Morgan Stanley (NYSE:MS) stock rose 0.3% despite not being able to escape the trend of a quarter that saw weak bond trading conditions hamper overall profitability on Wall Street. The 45% drop in income from trading fixed-income, currencies and commodities was at the weaker end of the peer group's range. 

Biogen (NASDAQ:BIIB) stock also fell 3.8% after the New York Times reported that two major clinics - Mount Sinai and the Cleveland Clinic in Ohio - have refused to administer its Alzheimer's drug Aduhelm, adding to the controversy over its approval by the Food and Drug Administration. UnitedHealth (NYSE:UNH), the country's largest hospital operator, said on a call that it still hadn't decided on a policy toward the drug. UnitedHealth stock fell 0.6% after its profit fell 36% in the second quarter, a consequence of its operating costs returning to normal levels after the widespread cancellation of elective procedures a year ago, in the first phase of the pandemic.

Earlier, the latest weekly jobless claims numbers indicated that the labor market recovery is grinding on, rather than roaring ahead. Initial jobless claims fell to 360,000 as expected, while the total number of people claiming some sort of dole fell under 14 million. 

Wall Street Opens Lower as Chipmakers Sag on TSMC Outlook; Dow Down 100 Pts
 

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Comments (8)
Bret Lafrance
Bret Lafrance Jul 15, 2021 11:53AM ET
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Investing.com, reuters, AP, Fox, CNN, they don’t publish news, they publish advertising. The shortage is bad for business AND eliminating the shortage is bad for business, they just want you to sell right now so that they can close their short positions and take your money.
John Kim
John Kim Jul 15, 2021 11:47AM ET
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I would think that normalizing supply in chip sector would be a good news? ... strange how market moves. sometimes gross rev seems more important but then sometimes net profit is. figure that out....
Bret Lafrance
Bret Lafrance Jul 15, 2021 11:47AM ET
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stocks can only go up or down, seems like it should be simple right? It’s all smoke and mirrors, guess right and you are a genius, guess wrong and you are stupid. ;)
Bret Lafrance
Bret Lafrance Jul 15, 2021 11:47AM ET
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guess right a lot and you are probably trading on inside information
Mitchel Pioneer
Mitchel Pioneer Jul 15, 2021 11:39AM ET
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"Stocks recover losses," the most prolific headline in internet news history.  Watch in awe as the US Ponzi Scheme financially defiles America on the world stage.
Alice Mae Jones
Alice Mae Jones Jul 15, 2021 11:31AM ET
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As a resident of a European socialist country snd a small business owner, I can definitely say socialist practices really hurt.
Matt Kay
Matt Kay Jul 15, 2021 11:31AM ET
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Are you sure you are not russian or republican bot?
Lars Hellman
LarsH Jul 15, 2021 11:31AM ET
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According to Wikipedia there is no socialist contry in Europe.
Kaveh Sun
Kaveh Sun Jul 15, 2021 11:02AM ET
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There r 6090 hospitals in usa. Total of those 2 sysyems r 9 plus 11 affiliates. The lefty news is pushing hard because they never like any for profit medical corp.
Mitchel Pioneer
Mitchel Pioneer Jul 15, 2021 10:32AM ET
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More intraday magic, as more losses magically vanish from the system.  Remarkable how "rallies" walk a tightrope, yet every loss is met with wild gyrations and intervention.  Love the way "buyers" stop buying when the "market" hits the break even point.  Circuit-breaker driven, criminal manipulation in broad daylight.  Are we going to close green today as well?  Welcome to the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.
Jon Bal
Jon Bal Jul 15, 2021 10:30AM ET
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aluminum prices surge on foil hat production
Edu Lopez
Edu Lopez Jul 15, 2021 10:30AM ET
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kkkkkkkkk my coffe just shot through my nose
Raymond Huggard
Raymond Huggard Jul 15, 2021 10:04AM ET
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Manufactured crisis. Democrats must be removed from power.
Jouni Matero
Jouni Jul 15, 2021 10:04AM ET
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Lol, yet another conspiracy theorist.
marcus daily
marcus daily Jul 15, 2021 10:04AM ET
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Jouni Matero if you dont rationally analyze the stimulus checks and now the child funds given out by the Dems, follow where the money is going, and see what it’s doing to businesses/labor costs/production/logistics etc, then you shouldnt be investing because your head is in the clouds w the rest of the dems. This biden/kamala admin is so anti business and so socialist minded that they are dangerous to our economy. Learn from Cuban and Chinese immigrants who recognize this democrat/socialism common trend. Manugactured crisis is correct. And why? Dems want totalitarian political power.
marcus daily
marcus daily Jul 15, 2021 10:04AM ET
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Exactly. Dems cannot wven run their own capitol cafeteria much less an entire country. Keep the poir poor, hand them just wnough free tidbits to keep their vote. Dem voters should talk to Native Americans about that socialism and how its worked for them.
 
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