Apple marks all-time high
Wall Street bets end of Fed rate hikes
06/30/2023, 10:40 p.m
The trading week ends with premiums on the US stock exchanges. The reason for this is the hope of further falling inflation rates. This would mean that the central bank is nearing an end to its rate hikes.
Wall Street started the weekend with significant premiums. The market received an additional boost from the PCE deflator in May, which came in slightly lower than expected at the core rate. Released alongside Personal Expenditure and Income, it is one of the Federal Reserve’s preferred indicators of inflation. The University of Michigan Consumer Sentiment Index beat the consensus estimate of economists. The fact that the purchasing managers’ index for the Chicago region did not rise as significantly as expected in June was not significant.
“It shows signs of stability and shows that we’re going in the right direction,” said Peter Andersen, founder of Andersen Capital Management in Boston. “As we close out this quarter and into the second half of the year, I am optimistic that the economy and consumers are in good shape and will continue to recover.”
The Dow Jones Index gained 0.8 percent. The broader one S&P 500 rose 1.2 percent and the tech-heavy Nasdaq Composite advanced 1.4 percent. Investors are currently hoping that the price pressure will ease further so that the central bank can soon end its tightening of monetary policy. However, the latest data suggests that the US economy is doing reasonably well and the Fed needs to stick to its hawkish stance, participants said. Nonetheless, investors appeared confident that the market could weather the prospect of higher bond yields for an extended period. In addition, there could have been position adjustments at the end of the quarter and therefore larger movements, traders said.
At the bond market Losses were made up with the price data after fears of a prolonged phase of high interest rates had initially weighed on the listings. Now the 10-year yield fell 2.9 basis points to 3.82 percent. The dollar turned negative with the PCE price index. The dollar index fell 0.4 percent. Significant gains were recorded oil price, boosted by the recent upbeat economic data out of the US. However, prices remained in their recent range.
With the individual values stood the Nike-Share under selling pressure. The sporting goods manufacturer earned less in its fourth fiscal quarter of 2022/23 than in the previous year and missed profit expectations. The share fell by 2.6 percent, that of the competitor Under Armour increased by 1.1 percent. Nike’s margin profile is uncertain given growing competition from brands like Lululemon, ON, Adidas and Puma, Cowen analysts said. The competition in the North American market is very tough, and demand for sneakers is falling.
The Appleshares reached a new record high of $194.48, the market value of the iPhone maker passed the $3 trillion mark. In January 2022, Apple was the first US company to conquer this brand. The stock market value has more than doubled in four years. Since the beginning of this year, the papers have gained around 45 percent, compared to the Nasdaq index around 30 percent. In the end, the paper rose by 2.2 percent.
For progress software it went up by 5.9 percent. The company reported a decline in net income even though sales had increased. Annual recurring revenues continued to show a positive trend, said CEO Yogesh Gupta. Accolade increased by 6.6 percent after exceeding market expectations. The outlook of the manufacturer of computer games convinced the analysts.
For Smart Global Holdings was up 8.9 percent. Although the company posted a loss in the third quarter on declining sales, CEO Mark Adams said he believes the maker of specialty solutions for the computing, storage and LED markets can benefit from emerging trends in artificial intelligence, machine Learning and data analysis will benefit.
A lucrative deal sent Bausch+Lomb flying high. The Swiss pharmaceutical company Novartis is selling several eye medications to the US group. Stocks listed on Wall Street gained 4.6 percent.