Oracle, a big name in cloud services, surprised everyone with lower earnings this quarter. This news is causing a lot of talk in the technological world. We’ll break down what happened and what it could mean for your investments.
Oracle earnings: the surprising news
Oracle, known for its cloud services, saw a big drop in the amount of money it made this quarter. This made many people in the tech industry wake up and take notice.
What Really Happened to Oracle’s Profits?
Oracle’s share price fell a whopping 11.5%, hitting its lowest point in a month. This happened after Oracle said they would make less money this quarter than people expected, and they also didn’t make as much as they thought in the first part of the year.
Why this is important for your money
Now everyone is waiting to see what happens with inflation. That’s when the prices of things go up. We will receive new figures on Wednesday and Thursday, and they will help us understand what the government could do about interest rates.
Why do people talk about inflation and money?
People are worried because the prices of things like oil have gone up a lot lately. This could make it difficult for the government to decide what to do about interest rates, which could affect the amount of money we all have.
What the experts say
Thomas Hayes, who knows a lot about money at Great Hill Capital LLC, said: “People are a little worried about the pretty aggressive rise in energy prices in recent weeks and that creates some concerns as we look forward to November.” He believes the numbers we get on inflation will be very important to what happens in the stock market.
What the numbers tell us
Experts who watch the stock market believe there is a 91% chance that interest rates will stay the same in September, and a 53% chance that they will stay the same in November. This means that most people think that the government will be very careful when making changes.
What other banks are doing
We are also attentive to what banks are doing in Europe. They have been raising interest rates a lot, but this time they will probably keep them where they are.
Energy companies are doing well
Companies that work with energy had a good day. Its shares rose 1.7%. This is because the price of oil is expected to rise.
Big tech companies had a mixed day
Some really big tech companies, like Amazon and Microsoft, saw their stocks go down a bit. This is because investors are thinking about new products and also because of what is happening with China.
How the main stock indices fared
The big numbers that show how the stock market is doing are down a bit. The Dow Jones fell 44.48 points, or 0.13%. The S&P 500 fell 6.78 points, or 0.15%. The Nasdaq, which is home to many technology companies, fell 18.30 points, or 0.13%.
Large paper companies are joining forces
Two large paper companies, WestRock and Smurfit Kappa, are going to work together. This will make it the largest paper and packaging company in the world, worth almost $20 billion.
Good news for Paramount Global
Paramount Global, a large entertainment company, received good news. It seems they have reached a settlement with the people they owe money to, which makes investors happy.
More companies rose than fell
Slightly more companies did well in the stock market today than did not. On the New York Stock Exchange, there were 1.16 companies that rose for every 1 that fell. On the Nasdaq, there were 1.09 up for every 1 down.
Some records were set
Some companies hit their highest share prices in a year, but others hit their lowest prices.
Also read: Asian stock markets hold firm on central bank actions, dollar pause