Airbnb on the rise: Dow keeps falling

Friday, February 26, 2021

Airbnb on the rise
Dow keeps feathers

Significantly higher bond yields continue to weigh on Wall Street. At the end of the week, the Dow Jones Index and the S&P 500 suffered slight losses. Things are going really well for Airbnb right now. Despite the red numbers, the share booking portal for accommodation is still on the rise.

After the downward slide of the previous day, the US stock markets showed inconsistent results at the end of the week. While the Dow was under selling pressure again, the Nasdaq composite gained somewhat. The market environment was characterized by volatility. Of the Dow Jones-Index closed 1.5 percent lower at 30,932 points during the S&P 500 gave way by 0.5 percent. For the tech-savvy Nasdaq Composite it went up by 0.6 percent.

The bond yields that triggered the stock market sell-off the day before came back a little. The ten-year return fell 10.0 basis points to 1.42 percent. On the previous day, the ten-year return had marched towards 1.60 percent.

Fears of rising inflation had pushed bond yields to their highest closing level in a year. This means that bonds provide an alternative to riskier stocks. In particular, technology stocks, which the previous day had recorded the highest slump since October, are thus possibly overvalued. Because the usually high share of debt in the sector could become a problem with rising market rates, it said.

"There has been a lightning spike in 10-year yields and that has thrown the cart as higher yields scare the stock market. Could there be more inflation than most think? While the Fed isn't concerned, it might Be the market, "warned LPL Financial's chief market strategist Ryan Detrick.

The concern of rising inflation rates was fueled by data: US consumer spending rose significantly in January – albeit within the expected range. According to the University of Michigan index, sentiment among US consumers deteriorated as expected in February, with short-term inflation expectations rising again. The mood of purchasing managers from the Chicago area clouded over more clearly than expected in February, but it still points to economic growth.

Etsy benefits from corona pandemic

Salesforce yielded 6.3 percent. The software provider reported record sales in the fourth quarter and raised its outlook. Investors are likely to have taken profits here. Dell Technologies (+ 1.7%) exceeded market expectations with sales and earnings in the final quarter. Surprisingly good too VMWare cut off, in which Dell holds a majority. Nevertheless, the share fell 3.7 percent.

Workday lost 2.4 percent. The provider of software for accounting and human resources management has exceeded expectations with its figures. Here, too, profit-taking is likely to have been the reason for the price losses. The fourth quarter was not as bad as feared Airbnb, even if the broker of private accommodation slipped deep into the red due to the corona pandemic. The stock jumped 13.3 percent. Farfetch rose by 2.8 percent. The online retailer for luxury fashion exceeded expectations with its figures for the fourth quarter.

Etsy increased by 11.5 percent according to the figures. The online platform for self-made things benefited in the fourth quarter from the restrictions due to the corona pandemic, which prompted many consumers to buy online, even if sales of hand-sewn face masks – the bestseller of last spring – fell noticeably in the final quarter. AT&T (-2.6%) announced the sale of its pay TV division to the financial investor TPG.

The dollar continued to appreciate as bond yields rose, the Dollar index climbed 0.9 percent. Of the Euro fell to $ 1.2070 after highs from the previous day well above the 1.22 mark. However, Unicredit's foreign exchange experts do not believe in a sustainable rise in the greenback. The Oil prices gave way – weighed down by the soaring dollar. The party does not have to be over, however, it was said with a view to the meeting of the group Opec + in the coming week. The firm dollar also weighed on the gold price – as did the continued high yields.