US OPEN: Wall Street under pressure from ADP data and Fitch decision!

• Wall Street opens lower, US100 loses 1.37%, dollar index gains 0.3%

• Fitch's US downgrade and better ADP data lifts the stock lower

• Results from CVS Health (CVS.US), Kraft Heinz (KHC.US), AMD (AMD.US), Norwegian Cruise Line (NCLH.US) and Starbucks (SBUX.US)

The major US indices start today's cash session with declines following the overtones of Fitch's downgrade of the US credit rating and good ADP data, which, if confirmed by Friday's NFP reading, could encourage the Fed to raise interest rates further at the September FOMC meeting. 

The session itself is filled with important quarterly reports today. In addition to the companies that have already presented their results before the Wall Street opening (selected companies can be found below), many will present their results after the close of trading on the main trading floors. 

These will include: Robinhood (HOOD.US), Occidental Petroleum (OXY.US), PayPal (PYPL.US) and Qualcomm (QCOM.US).

Wall Street stocks, volume reflects capitalisation. Most companies are currently experiencing sharp declines.  Source: xStation 5

The US500 index is currently trading at 4560, losing 0.85%. Moreover, the scale of the declines has lifted the index into the zone of local minima from the end of July this year. Source: xStation5

Company news:

CVS Health (CVS.US) shares gained nearly 2% early in the session following the release of strong Q2 2023 results. The company's EPS amounted to USD 2.21, compared to the expected USD 2.11. The company's results were primarily supported by good momentum in its pharmacy benefits management unit and lower-than-expected medical costs in its health insurance business.

Kraft Heinz (KHC.US) shares lost close to 1% early in the session following the release of relatively mixed quarterly results that fell short of investor expectations. Heinz net sales rose to $6.72 billion in the second quarter of 2023, up from $6.55 billion last year and against analyst expectations of $6.81 billion. Higher product prices have discouraged consumers from buying ready meals and condiments.

AMD (AMD.US) shares lost nearly 2% early in the session on lower-than-expected earnings forecasts for the third quarter of this year. On the other hand, Q2 results alone beat investors' expectations.  The company's adjusted EPS came in at 58 cents vs. 57 cents expected, while revenue came in at US$5.36 billion vs. US$5.31 billion expected. Q3 revenue is expected to come in at US$5.7bn, while analysts were expecting a forecast of US$5.81bn. 

Norwegian Cruise Line (NCLH.US) shares lost more than 3.2% early in the session on lower-than-expected Q3 2023 earnings forecasts. However, Q2 results alone managed to beat analysts' estimates. 

Starbucks (SBUX.US) failed to meet market expectations for quarterly results. The company's comparable sales increased y-o-y to 10% against analysts' expectations of 11.8%. Despite the lower sales volume, the operating margin beat analysts' expectations at 17.4% versus 16.9% expected. The company's EPS was USD 1 against expectations of USD 0.95.