US index futures are down in premarket trading on Wednesday, as the downgrade of US credit ratings by Fitch Ratings ended up weighing on investor sentiment.

By 7:17 AM, Dow Jones futures (DOWI:DJI) were down 110 points, or 0.31%. S&P 500 futures were down 0.49%, while Nasdaq-100 futures were down -0.73%. The 10-year Treasury yield was at 4.015%.

The downgrade of the credit rating by Fitch from “AAA” to “A+”, with a stable outlook, could overshadow some corporate indicators and balance sheets. That fuels fears about the deterioration of the world’s largest economy over the next three years. US Treasury Secretary Janet Yellen reacted to the decision, noting that the US economy had recovered quickly from the recession caused by Covid-19, and considered Fitch data outdated, according to Reuters.

In Europe, in addition to uncertainties regarding the world’s largest economy, some data and corporate news are also considered. Siemens Healthineers, Siemens’ healthcare business, faces a nearly 7% drop in shares after reporting a drop in quarterly profit, hit by the cancer therapy segment, which has had problems with deliveries, according to agencies. Meanwhile, Volkswagen is in talks with an electric vehicle startup in China, which is sending the German company’s shares down more than 1%.

On Wednesday’s American economic agenda, investors will follow the release of interest rates for mortgages on 30-year contracts at 7:00 am. The ADP, in turn, is going to release at 8:15 am the number of private jobs for July, with a consensus of 189,000 new jobs. Later, at 10:30 am, EIA’s weekly oil inventory will be released, with the market projecting a reduction of 900,000 barrels.

In commodities markets, West Texas Intermediate crude for September is up 0.86% to trade at $82.07 a barrel. Brent crude for October is up 0.73% near $85.53 a barrel. Iron ore futures traded in Dalian, China, fell 1.07% to $115.60 a tonne on doubts about the US economy following Fitch’s credit rating downgrade.

Stocks on Wall Street had a mixed day on Tuesday. The Dow rose 71.15 points, or 0.20%, to 35,630.68 points, its best closing level in more than a year. The S&P 500 fell 12.23 points, or 0.27%, to 4,576.73 points. The Nasdaq Composite dropped 62.11 points, or 0.43%, to 14,283.91 points. The ISM PMI index showed the worst case scenario. At the same time that the main data fell to 46.4 points (expectation: 46.9), showing contraction, the index of prices paid was higher than expected, to 44 points, despite remaining at a contractionary level. Finally, the long-awaited JOLTS employment report did not bring any major surprises, with the indicator being very close to market expectations.

Ahead of Wednesday’s corporate results, investors await reports from CVS Health (NYSE:CVS), Humana (NYSE:HUM), Generac (NYSE:GNRC), Kraft Heinz (NASDAQ:KHC), Ferrari (NYSE:RACE), Dupont (NYSE:DD) before the market opened. Post-closing, reports are expected from PayPal (NASDAQ:PYPL), Shopify (NYSE:SHOP), Qualcomm (NASDAQ:QCOM), Occidental Petroleum (NYSE:OXY), Unity (NYSE:U), Robinhood (NASDAQ:HOOD), Mercado Libre (NASDAQ:MELI), Etsy (NASDAQ:ETSY), among others.

Wall Street Corporate Highlights for Today

Apple (NASDAQ:AAPL) – Apple will likely report a more than 2% decline in iPhone sales in the second quarter due to anticipation of a new model and a slow economy. Analysts are waiting for details on using AI to drive growth. Mac and iPad sales are also expected to decline, but the services business could be a bright spot, with an increase in the ad market and prices for iCloud subscriptions.

Amazon (NASDAQ:AMZN) – Amazon.com has announced a $7.2 billion investment in Israel through 2037 to launch Amazon Web Services (AWS) data centers in the country. Cloud services will allow the government to run applications and store data locally. With this expansion, AWS will be available in 32 regions, contributing $13.9 billion to Israel’s GDP. In other news, Amazon is rolling out a major overhaul of its grocery business, offering fresh food delivery to non-Prime customers and planning to merge its online grocery offerings into a single cart. The changes are aimed at expanding the company’s share of an estimated $1.5 trillion US grocery market. Refurbishments include renovating physical stores and focusing on simplifying the purchasing process for customers.

Meta Platforms (NASDAQ:META) – Meta has initiated the process to block access to news on Facebook and Instagram in Canada in response to the new online news law. The Canadian government denounced the measure as irresponsible, while Meta claims the news has little economic value. Canadian law is similar to Australian law. Meta also plans to ask European Union users for consent before allowing companies to target advertising based on their activities on Facebook and Instagram. The move is aimed at meeting regulatory requirements and stems from an order from Ireland’s data protection commissioner. Meta will share more information about the process in the coming months. In other news, Meta plans to launch AI-powered chatbots with different personalities in September.

Alphabet (NASDAQ:GOOGL) – Google is restructuring its Assistant unit to drive advances in generative AI and incorporate large language model technology. This is aimed at improving voice software, competing with Apple’s Siri and Amazon’s Alexa. The restructuring may include some job cuts.

Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) – Indian cricket’s governing body has postponed auctioning the series’ bilateral broadcasting rights to the next five years, seeking interest from companies including Amazon and Alphabet. The sale faces challenges due to weak advertising revenue. The IPL remains the most valuable cricket property, with BCCI hoping to raise at least $750 million from the sale of the rights.

Uber (NYSE:UBER) – Uber is developing an AI-powered chatbot to improve customer service in its app. CEO Dara Khosrowshahi mentioned that the company uses AI in its businesses, from algorithms to find cars to messengers.

Tesla (NASDAQ:TSLA) – Indian authorities have asked Tesla to follow Apple’s (NASDAQ:AAPL) approach and seek local partners to deal with Chinese suppliers, while Tesla looks into building a factory in India. The conflict between India and China could complicate Tesla’s plans to bring in Chinese suppliers.

General Motors (NYSE:GM) – General Motors will recall just over 900 older vehicles worldwide due to ruptured Takata airbag inflators. The decision was taken after an incident in Brazil involving a 2013 Chevrolet Camaro. The company is investigating the cause, but suspects a manufacturing defect. To date, there are no similar reports of inflator ruptures in other GM vehicles. Since 2009, faulty Takata inflators have been linked to more than 30 deaths worldwide, but none have occurred in GM vehicles.

Ford Motor (NYSE:F) – Ford has resumed assembly of the F-150 Lightning electric truck and plans to triple its production rate to 150,000 vehicles per year by October. The company is now allowing individual customers to buy the F-150 Lightning Pro cheaper.

General Electric (NYSE:GE) – General Electric is looking at a significant dividend return thanks to a remarkable financial recovery. With projections of free cash flow generation and other improvements to its business, analysts suggest that a dividend of up to $2 per share is possible for GE Aero following the planned 2024 spin-off. of 0.3%.

TSMC (NYSE:TSM) – Chipmaker TSMC leads advanced chip packaging development with 2,946 patents, followed by Samsung with 2,404 and Intel with 1,434, according to LexisNexis data. Advanced packaging is essential for getting more power out of chip designs and is relevant for contract chip makers. TSMC and Samsung have consistently invested in the technology, while Intel (NASDAQ:INTC) has not kept up with its own patent filing in this field.

Intel (NASDAQ:INTC) – Intel sold all of its shares in Kaltura (NASDAQ:KLTR) and cut about a tenth of its stake in Joby Aviation (NYSE:JOBY), according to a filing. Kaltura provides a video-on-demand technology platform, while Joby develops eVTOL aircraft. Kaltura and Joby shares have fallen since the start of the second quarter, while Intel shares have risen.

Tupperware (NYSE:TUP), Yellow Corp (NASDAQ:YELL) – Shares of North American companies such as Tupperware Brands, Yellow Corp and others rose significantly, reminiscent of “meme shares”, boosted by retail investors. Experts point out that the phenomenon may not follow traditional logic and involves companies in difficulties with high volatility. Yellow jumped more than 78% on Tuesday, while Tupperware jumped  more than 32% after  shooting  more than 575% in the past seven sessions.

Wells Fargo (NYSE:WFC) – Wells Fargo expects to pay up to $1.8 billion to replenish the government’s deposit insurance fund after three banks fail, under an FDIC proposal. The bank may also overhaul its balance sheet due to new US capital guidelines. In addition, Wells Fargo is in negotiations to resolve SEC and CFTC investigations into employee communications over unapproved channels. The bank authorized a new share buyback program of up to $30 billion after second-quarter earnings.

Goldman Sachs (NYSE:GS) – Lisa Opoku, global head of Goldman Sachs Partner Family Office, is leaving the firm after two decades. She oversaw wealth management offerings for partners and senior executives. This departure is part of a recent series of senior executive departures from Goldman Sachs. The firm promoted 11 partners and hired nine new investment-focused managing directors this year.

Bank of America (NYSE:BAC) – Bank of America has revoked its US recession forecast, becoming the first major Wall Street bank to officially do so. Better economic results over the last three months, low unemployment and easing of price pressures were cited as reasons for the change. Analysts forecast GDP growth of 2% in the quarter ended December, 0.7% in 2024 and 1.8% in 2025. The resilience of the US economy this year has forced many to revise their recession forecasts.

HSBC Holdings (NYSE:HSBC) – HSBC raised its profitability target and announced a $2 billion share buyback. Revenues increased in the first half, boosted by central bank interest rates. The commercial and retail banking and wealth management division was the main driver of results. HSBC has warned of economic uncertainty and customer pain, particularly in Britain. The bank continues to expand in China and is considering exiting some countries to boost profits. HSBC has sold businesses in Oman, Canada, France and Greece, but the sale in Russia has not yet been completed due to regulatory approval.

NatWest Group (NYSE:NWG) – NatWest Group Plc was ordered to pay $112,440 to a former compliance manager, Adeline Willis, who was wrongfully terminated after undergoing cancer surgery. Willis stated that the discrimination had a detrimental impact on her health. NatWest regretted what happened and took steps to prevent it from happening again. Wrongful dismissal awards are generally limited in the UK, but may be unlimited if allegations or discrimination are substantiated.

Blackrock (NYSE:BLK) – A US Congressional committee is investigating BlackRock and MSCI for facilitating investments in blacklisted Chinese companies. The companies are alleged to allow the flow of capital to companies accused of contributing to the Chinese military advance and human rights abuses. BlackRock has denied wrongdoing, and MSCI is reviewing the inquiry.

Blackstone (NYSE:BX) – Blackstone’s $68 billion retail real estate fund, Blackstone Real Estate Income Trust (Breit), limited investor withdrawals for the ninth consecutive month in July, facing large withdrawal requests. Redemption requests reached US$3.7 billion, with 34% of this amount being paid to investors. Breit’s semi-liquid structure has worked as expected, although redemption requests remain high. The fund holds a portfolio of US$122 billion in assets. Blackstone shares rose 0.2% on Tuesday.

Apollo Global Management (NYSE:APO), Bain Capital (NYSE:BCSF), KKR & Co (NYSE:KKR) – These companies are among the candidates selected in the tender to acquire a controlling interest in the chip packaging unit Shinko Electric Industries Co., from Fujitsu Ltd. State-owned Japan Investment Corp. is also seeking a 50% stake in the company. The next round of bidding is scheduled for September. Shinko Electric is valued at around $2.7 billion. Fujitsu has sought to streamline its business and focus on communication and information technology.

Apollo Global Management (NYSE:APO), Yellow (NASDAQ:YELL) – Apollo Global Management and other creditors are close to an agreement to provide Yellow Corp with new money during an impending bankruptcy. The trucking company faces financial difficulties, including $1.54 billion in debt and payments due in 2024.

Coca-Cola Europacific Partners (NASDAQ:CCEP) – Coca-Cola Europacific Partners plans to acquire Coca-Cola Beverages Philippines together with Aboitiz Equity Ventures (AEV) for $1.8 billion, seeking to become the world’s largest bottler of cola . The ownership structure will be 60% CCEP and 40% AEV. The agreement is still under negotiation. CCEP also expects to return to the adjusted earnings range of 2.5 to 3 times its net debt by 2024.

Li-Cycle (NYSE:LICY) – Li-Cycle has started operations at its battery recycling plant in Germany, part of its expansion into the European market. The factory in Magdeburg has the capacity to process 10,000 metric tons of battery parts annually, with the potential to grow to 30,000 tons. The company is also building facilities in Norway and France to feed an Italian recycling plant in the future. Li-Cycle plans to become one of Europe’s leading lithium producers.

Zillow (NASDAQ:Z), Redfin (NASDAQ:RDFN) – Zillow and Redfin announced a partnership to expand the reach of home builder listings on Zillow and allow Redfin customers to explore a wider range of new homes for sale. The partnership comes amid rising demand for new homes and outperforming housing technology and homebuilder stocks. Zillow newbuild listings will begin appearing on Redfin in the fourth quarter. The two companies will release their quarterly results in the coming days.

Earnings

CVS Health Corp (NYSE:CVS) – Shares in CVS were up 0.7% premarket after reporting better-than-expected second-quarter earnings and revenue, driven by strong performance in the health benefits business. Total revenue grew 10.3% to $88.92 billion. Net income fell to $1.90 billion, or $1.48 per share, from $3.03 billion, or $2.29 per share, in the prior-year period. The company reaffirmed its 2023 adjusted EPS guidance range of between $8.50 and $8.70. CVS also reported on progress in its restructuring plan to improve efficiency and reduce costs.

Generac Holdings (NYSE:GNRC) – Shares of Generac fell premarket after reporting mixed quarterly results and a softer consumer backdrop. Second-quarter net income was $45 million, or $0.70 per share, compared to $156 million, or $2.21 per share, in the prior-year period. Net sales fell to $1.00 billion from $1.29 billion. The chief executive said that the backup energy megatrends remain attractive.

Fresh Del Monte Produce (NYSE:FDP) – The company reported an increase in second-quarter profit year-over-year, but revenue declined due to lower avocado prices and declining non-tropical fruit volume. Net income was $47.7 million, or $0.99 per share. Sales fell 2.6% to $1.18 billion. Banana sales increased 6.5% to $448.8 million. Fresh produce and value-added sales fell 7.5% to $677.6 million. The stock has lost 7.4% over the past three months.

Pinterest (NYSE:PINS) – Despite beating expectations on both the revenue and earnings line, Pinterest was down 4.7% premarket on Wednesday. The image-sharing platform reported adjusted earnings of 21 cents a share on revenue of $708 million, according to Refinitiv.

Match Group (NASDAQ:MTCH) – Stocks were up 7.7% in premarket Wednesday after Match Group beat analyst expectations in the second quarter. The dating app company posted earnings of 48 cents a share and revenue of $830 million. Analysts polled by Refinitiv had expected earnings per share of 45 cents and revenue of $811 million.

Electronic Arts (NASDAQ:EA) – Electronic Arts was down 4.5% in premarket trading on Wednesday after its fiscal first-quarter revenue missed analyst expectations. The video game company reported revenue of $1.58 billion, below the consensus estimate of $1.59 billion, according to Refinitiv. However, it posted earnings per share of $1.47, beating the forecast of $1.02 per share.

Starbucks (NASDAQ:SBUX) – After reporting a loss of revenue, Starbucks was down 2% in premarket Wednesday. The coffee chain reported fiscal revenue of $9.17 billion in the third quarter, below the $9.29 billion estimated by analysts polled by Refinitiv. However, the company reported adjusted earnings per share of $1.00, beating the estimate of 95 cents.

Advanced Micro Devices (NASDAQ:AMD) – Following the release of better-than-expected quarterly results by Advanced Micro Devices (AMD), chips stock jumped 0.9% in premarket trading on Wednesday. For the second quarter, AMD reported adjusted earnings of 58 cents per share and revenue of $5.36 billion. Analysts polled by Refinitiv had forecast earnings per share of 57 cents and revenue of $5.31 billion. AMD predicts a strong end to the year, driven by the MI300 artificial intelligence chips that could compete with Nvidia’s. AMD has not yet created special chips for the Chinese market, but is evaluating strategies to meet the country’s demand. The company forecasts 2023 sales in its data center business to exceed 2022’s $6.04 billion.

Fortis (NYSE:FTS) – Canadian utility company Fortis reported an increase in second-quarter profit to net income of $221.4 million, driven by strong performance from its utilities in the United States and western Canada. Rate base growth, particularly at ITC, its US electricity transmission company, and Western Canadian utilities, contributed to this increase. Additionally, the company is delivering on its plan to invest C$4.3 billion during the year, with C$2 billion invested in the first half.

Freshworks (NASDAQ:FRSH) – Freshworks was up a significant 22.5% in premarket trading on Wednesday after reporting second-quarter results that beat expectations. The software company posted adjusted earnings of 7 cents a share and revenue of $145 million. Analysts polled by Refinitiv had expected earnings per share of 2 cents and revenue of $141 million.

SolarEdge Technologies (NASDAQ:SEDG) – Shares of SolarEdge were down 13.1% in premarket trading on Wednesday. In the second quarter, SolarEdge missed expectations for revenue, reaching $991 million compared to the $992 million expected by analysts surveyed by Refinitiv. However, the company beat earnings estimates, posting an adjustment of $2.62 per share, which was better than the estimate of $2.52 per share.

Devon Energy (NYSE:DVN) – Shares were down 1.8% in premarket Wednesday after Devon Energy missed revenue expectations for its second quarter. The company posted revenue of $3.45 billion, down from the $3.74 billion estimated by analysts polled by Refinitiv. However, earnings came in line with estimates, with Devon reporting adjusted earnings of $1.18 per share.

Chesapeake Energy (NASDAQ:CHK) – Chesapeake Energy reported lower second-quarter profit due to lower natural gas prices and production. The company’s profit fell to $391 million, with gas prices nearly 63% lower than the previous year. The company expects to drill more wells in the third quarter.

Marathon Petroleum (NYSE:MPC) – Marathon Petroleum posted a 63% drop in second-quarter profit as improved fuel supplies and the economic slowdown squeezed its margins. Resilient US fuel demand was impacted by increased global refining capacity and the economic slowdown. The company expects a gradual recovery, but gross capacity utilization has dropped to 93% due to planned maintenance. The refining and marketing margin fell to $22.10 a barrel, and attributable net income fell to $2.2 billion.

elf Beauty (NYSE:ELF) – Shares in elf Beauty were flat premarket after beating analyst expectations in its most recent quarter. The company posted adjusted earnings of $1.10 per share and first-quarter revenue of $216 million. Analysts polled by Refinitiv had expected earnings per share of 56 cents and revenue of $184 million.

Caesars Entertainment (NASDAQ:CZR) – Caesars Entertainment was flat in the premarket after the casino company posted revenue of $2.88 billion in the second quarter, beating the estimate of $2.87 billion, according to Refinitiv. .

Frontier Group (NASDAQ:ULCC) – Frontier Group was flat premarket after reporting revenue and earnings that beat expectations. The airline reported second-quarter adjusted earnings of 31 cents per share on revenue of $967 million. Analysts polled by Refinitiv had expected earnings per share of 28 cents and revenue of $966 million.

Jetblue Airways (NASDAQ:JBLU) – JetBlue Airways lowered its full-year profit forecast, citing the termination of its alliance with American Airlines (NASDAQ:AAL) and changes in travel demand. The company also faces issues with the RTX Pratt & Whitney engines that power its Airbus A320neo jets, resulting in aircraft on the ground doubling this year. JetBlue now expects adjusted earnings of 5 cents to 40 cents a share, down from a previous forecast of 70 cents to $1 a share.

Norwegian Cruise Line (NYSE:NCL) – Norwegian Cruise Line forecast a bearish profit for the third quarter due to high costs, although it experienced strong demand and higher ticket prices in the second quarter. The company is focused on reducing costs, optimizing crew movements and reformulating food. Second-quarter revenue was $2.21 billion, with adjusted earnings of 30 cents per share.

Virgin Galactic (NYSE:SPCE) – Shares in Virgin Galactic were down 6.8% in premarket trading on Wednesday after the space tourism company posted a drop in revenue during the second quarter. The company reported revenue of $1.9 million, missing the consensus estimate of $2.7 million, according to Refinitiv. However, the company beat earnings expectations, posting a loss per share of 46 cents, which was better than the estimated loss of 51 cents per share.

American International Group (NYSE:AIG) – AIG beat expectations for second-quarter earnings, driven by growth in its life and retirement unit and lower catastrophe losses. Net premiums written in its general insurance arm grew by 10%. Adjusted net income attributable to common stockholders rose to $1.75 per share. The life and retirement unit saw a 42% jump in premiums and deposits. Investment income increased by 37%. General insurance underwriting revenue declined 26% due to catastrophe-related expenses. AIG also increased its share repurchase authorization to $7.5 billion.

Carlyle Group (NASDAQ:CG) – The Carlyle Group reported lower second-quarter earnings, reflecting the challenges faced by new CEO Harvey Schwartz in replacing the private equity firm. Distributable earnings were down 26% year-on-year but still beat analysts’ estimates. The pace of investments and new business has slowed down, reinforcing the unpredictable scenario for Schwartz’s administration, which seeks to boost share prices and stabilize the business. The company reaffirmed its outlook, predicting a drop in fee-related earnings in 2023 from last year.

Qualcomm (NASDAQ:QCOM) – Qualcomm may present a low-key forecast when reporting its fiscal third-quarter earnings. Global demand for smartphones is weak, making it challenging for the company to achieve solid results. Analysts project quarterly revenue of $8.5 billion and adjusted earnings per share of $1.81. Qualcomm shares are down 11% over the last 12 months.

Sysco Corp (NYSE:SYY) – Food distributor Sysco posted quarterly sales below expectations due to the impact of inflation on consumer spending. The volatility and sensitivity of demand for out-of-home food has prevented the company from raising prices despite cost pressures. Profit for the period topped analysts’ estimates. Net sales increased to $19.73 billion in the fourth quarter, but were still below estimates.

Lumen Technologies (NYSE:LUMN) – Lumen Technologies posted a quarterly net loss of $8.74 billion, impacted by a non-cash impairment charge of $8.8 billion. The company faces continued weakness and massive debt amid the digitization of its operations. Second-quarter revenue was $3.66 billion, just short of analysts’ average estimate of $3.67 billion, according to Refinitiv data.

Pfizer (NYSE:PFE) – Pfizer plans to initiate a cost-cutting program if demand for its Covid-19 vaccine and antiviral treatment remains lower than expected in the coming months. CEO Albert Bourla mentioned the possibility of reducing investments for the virus, including combination vaccines. Second-quarter sales of the Comirnaty vaccine were down 83%, but were still above analysts’ estimates. Total second-quarter revenue fell 54% to $12.73 billion. The company is also facing challenges related to tornado damage to its facilities and stricter-than-expected recommendation for its RSV vaccine by regulators, among others.

Merck (NYSE:MRK) – Merck & Co raised its full-year revenue forecast due to strong sales of its Keytruda and Gardasil products in the second quarter, beating Wall Street estimates. The company expects to earn between $2.95 and $3.05 per share in 2023.

Haleon (NYSE:HLN) – Haleon raised its annual revenue growth forecast due to demand for oral and respiratory health products despite rising cost of living. The company expects revenue growth between 7% and 8% and adjusted operating profit between 9% and 11%. The results highlight the benefits of its split from drugmaker GSK last year. Organic revenue in the first half increased 10.4%, with volumes up 2.9%. The respiratory health business saw strong growth, driven by sales of Theraflu. Adjusted operating earnings grew 8.9% in the first half.

Altria Group (NYSE:MO) – Tobacco giant Altria beat Wall Street’s revenue and profit expectations, buoyed by demand for nicotine sachets and higher prices. Its share in the premium segment of Marlboro cigarettes is 58.6%. The company also benefited from strong demand for spit-free nicotine pouches, with volumes growing 47.8% in the quarter year-over-year. Altria has reaffirmed its full-year profit forecast after completing the acquisition of e-cigarette startup NJOY Holdings.

Molson Coors (NYSE:TAP) – Molson Coors beat expectations with earnings of $1.78 per share and second-quarter revenue of $3.27 billion. The company expects high single-digit sales growth for the full year, but some analysts believe its projections are conservative.

Uber (NYSE:UBER) – Uber warned of price competition from Lyft and set a lower-than-expectations profit forecast. Second-quarter revenue missed estimates despite Uber’s first quarter operating profit. Uber forecast adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter above analyst expectations. Revenue grew 14% in the quarter, but the pace of growth slowed from previous quarters.

Toyota (NYSE:TM) – Toyota reported first-quarter operating profit of $7.85 billion, nearly double the prior year, driven by increased sales and productivity, and also benefited by the weaker yen. Toyota sold about 2.53 million cars in the quarter, with about 34% being hybrids and other electrified vehicles. Performance in Japan was particularly strong.

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