Wednesday, November 03, 2021
All indices make record highs
Wall Street celebrates Fed decision
The US Federal Reserve is scaling back its massive asset purchases. But Wall Street doesn’t let that spoil its good mood. On the contrary: Investors are relieved that the cuts are not harder than already priced in. So it’s enough for new records in New.
Investors react to the monetary policy decisions of the US Federal Reserve with relief. It closed on Wall Street Dow Jones in the evening 0.3 percent higher to 36,157 points. The technology-heavy one Nasdaq advanced one percent to 15,811 points. The broad one S&P 500 gained 0.6 percent to 4660 points. All three market barometers reached new records.
The dollar index, which reflects the exchange rate to major currencies, came under pressure and lost up to 0.3 percent to 93,871 positions. US Treasuries were also thrown out of the custody accounts. This drove the yield on landmark ten-year Treasuries to 1.596 percent.
The Federal Reserve wants to reduce the volume of its securities purchases from the current $ 120 billion by $ 15 billion from mid-November. “The tapering is there and the Fed is just gently stepping on the brake pedal,” said Naeem Aslam, chief market analyst at brokerage firm AvaTrade.
US stocks depress oil
Regardless of this, the crude oil became cheaper WTI due to a surprisingly strong increase in US inventories by 3.3 percent to 81.18 dollars per barrel (159 liters). “Every price drop is an opportunity to buy,” said analyst Joshua Mahoney of brokerage house IG. “Regardless of the world climate conference, I do not see any move away from fossil fuels.” The wish is there, but the implementation will take time.
Ethereum on the other hand, continued its soaring and rose by up to 3.1 percent to a mobile record high of 4643.52 dollars. The second most important cyber currency after Bitcoin continues to benefit from the hope of the early introduction of a listed fund (ETF) on this cryptocurrency, said analyst Timo Emden from Emden Research. This could attract fresh capital.
Lyft and T-Mobile on the rise after quarterly figures
Was among the favorites on the US stock market Lyft. The title of the driving service broker rose thanks to a surprisingly large quarterly profit by up to 15 percent, as strong as last a year ago. In the end there was a plus of a good eight percent. Operating profit was $ 67.3 million, more than double what analysts had forecast. The company is benefiting from the relaxation of the corona restrictions and is more profitable than before the outbreak of the pandemic, the analysts at KeyBanc praised. In Lyft’s slipstream, the rival’s papers won Above more than six percent.
The titles of T-Mobile US with a premium of over five percent. The mobile operator presented solid quarterly results in a difficult environment, praised analyst Michael Hodel from the research house Morningstar. In the slipstream of its US subsidiary, Deutsche Telekom shares rose 1.6 percent on the German stock exchange.
The shares of Activision Blizzard on the other hand collapsed more than 14 percent. Because of the delays in the market launch of “Overwatch 2” and “Diablo 4”, he will significantly reduce his earnings forecasts for 2022, announced analyst Doug Creutz of the asset manager Cowen. Against the background of the management chaos at the computer games provider, the postponement does not come as a complete surprise.