Software Maker Adobe Falls on Recovering Wall Street
Adobe was among the biggest falls on the stock exchanges in New York on Friday. The software maker made more profit than analysts had expected last quarter but gave a disappointing outlook for the rest of the year.
The company says it is mainly affected by the more expensive dollar and was lowered by more than 15 percent. Earlier, industry peers, Microsoft and Salesforce warned about unfavourable exchange rates.
The mood on Wall Street was otherwise moderately positive, after the heavy price losses a day earlier. The sharp rate hike by the US Federal Reserve earlier this week fueled fears of economic contraction. The central bank indicated that it was prepared to accept a recession and higher unemployment to contain the high inflation.
Investors are also getting ready for a long weekend. On Monday, Wall Street will be closed for Juneteenth, which commemorates the end of slavery in the United States.
Shortly after opening, the Dow-Jones index was 0.4 percent higher at 30,072 points. The main index fell below 30,000 points for the first time since January last year on Thursday and is heading for the eleventh weekly loss in the past twelve weeks.
The broad S&P 500 rose 0.5 percent to 3,692 points. Tech gauge Nasdaq gained 0.9 percent on 10,737 points, after the price boom of 4 percent a day earlier. The S&P 500 and Nasdaq are also heading for significant weekly losses.
US Steel gained more than 1 percent. The steelmaker released a better-than-expected outlook for the current quarter. The company is benefiting from the rising demand and higher steel prices.
The Chinese online stores JD.com and Alibaba, both of which are listed in New York, were also in the spotlight. JD.com CEO Xin Lijun said in an interview with Bloomberg news agency that the company is considering delivering meals. JD.com would thus compete with Alibaba and Meituan, which dominate the meal delivery market in China. JD.com added just under 4 percent.
Alibaba climbed more than 7 percent. Reuters news agency reported that the Chinese central bank has approved Ant Group’s application to form a financial holding company. That fueled hopes of a possible IPO of the payment company of Alibaba.