Streetbeat News

Credit Ratings

SPGI

Fitch Ratings has downgraded the U.S. credit rating from AAA to AA+ due to fiscal concerns, perceived governance decline, and increased political polarization. The decision was criticized by U.S. Treasury Secretary Janet Yellen and White House economic advisor Jared Bernstein as arbitrary and based on outdated data. To regain its previous rating, the U.S. would need to stabilize its debt-to-GDP ratio and possibly permanently suspend the debt ceiling, according to Fitch.

Portfolio Pulse from Piero Cingari

August 04, 2023 | 12:15 pm

BOTZ

NUGT

SMH

TAN

TLT

TQQQ

UVXY

US Treasury yields surged due to Fitch's downgrade of the US sovereign credit rating and elevated issuance plans. The downgrade was due to concerns over fiscal deterioration, growing government debt, and governance erosion. The Treasury Department plans to issue $103 billion in its quarterly refund next week. Seven ETFs experienced significant volatility, including iShares 20+ Year Treasury Bond ETF (TLT), ProShares UltraPro QQQ (TQQQ), VanEck Semiconductors ETF (SMH), Invesco Solar ETF (TAN), ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), Direxion Daily Gold Miners Index Bull 2X Shares (NUGT), and Global X Robotics & Artificial Intelligence ETF (BOTZ).

Portfolio Pulse from Piero Cingari

August 04, 2023 | 12:10 pm

AMX

DIS

MAX

Communication services stocks are trading lower due to negative market sentiment following Fitch's downgrade of the U.S. long-term credit rating.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:04 pm

ARMK

CZR

DENN

HTHT

SCI

TAL

WYNN

YUMC

Shares of hotel, restaurants and leisure stocks are trading lower amid recession fears following a downgrade of the U.S. credit rating. This impacts a range of companies including ARMK, CZR, DENN, HTHT, SCI, TAL, WYNN, YUMC.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:04 pm

Boeing's shares are trading lower due to overall market weakness following Fitch's downgrade of the U.S. long-term credit rating.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:03 pm

ALL

BAM

Financial stocks are trading lower due to negative market sentiment following Fitch's downgrade of the U.S. long-term credit rating.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:02 pm

Unity Software Inc. (NYSE:U) shares are trading lower after Fitch downgraded the US credit rating, impacting risk sentiment and causing a sell-off in growth sectors such as tech. Unity is set to report Q2 earnings after the market close, with expected earnings of six cents per share and revenue of $514.18 million.

Portfolio Pulse from Ryan Gustafson

August 04, 2023 | 12:02 pm

SHOP

Shopify Inc. (NYSE:SHOP) shares are trading lower amid overall market weakness after Fitch downgraded the US sovereign credit grade. The downgrade has driven a sell-off in growth sectors such as tech and could create a challenging environment for companies to grow in the future. Shopify is set to report Q2 earnings after the market close, with expected earnings of six cents per share and revenue of $1.62 billion.

Portfolio Pulse from Ryan Gustafson

August 04, 2023 | 12:02 pm

JPM

TLT

US Treasury Secretary Janet Yellen has criticized Fitch's decision to downgrade the US credit rating from AAA to AA+, calling it 'entirely unwarranted'. The downgrade led to a significant drop in stock prices and a fall in long-dated US Treasury bonds. Yellen argues that Fitch's assessment is flawed and based on outdated data, failing to acknowledge the significant improvements in various indicators over the last 2 1/2 years.

Portfolio Pulse from Piero Cingari

August 04, 2023 | 11:59 am

ADMP

CMBM

DRVN

KHC

VRT

WAVD

The Nasdaq Composite fell over 300 points, with U.S. stocks trading lower. Fitch Ratings downgraded the United States’ sovereign credit grade from AAA to AA+. The Kraft Heinz Company reported better-than-expected earnings for its second quarter, while sales missed estimates. WaveDancer, Inc., T Stamp Inc., and Vertiv Holdings Co posted positive results, while Adamis Pharmaceuticals Corporation, Cambium Networks Corporation, and Driven Brands Holdings Inc. reported negative results.

Portfolio Pulse from Lisa Levin

August 04, 2023 | 11:57 am