Birkenstock continues its decline
Interest rate worries push up dollars and yields
October 13, 2023, 12:08 a.m
US inflation data weighs on Wall Street. In addition, Birkenstock continues to decline after its botched stock market debut. Ford shares are also in the red zone.
Stubborn US inflation is fueling new interest rate fears among investors on Wall Street. The Dow Jones Index the standard values closed 0.5 percent lower at 33,631 points on Thursday. The technology-heavy one Nasdaq fell 0.6 percent to 13,574 points. The broad one S&P 500 lost 0.6 percent to 4349 points.
The Consumer prices rose by 3.7 percent in September, at the same pace as in August. Experts surveyed by the Reuters news agency had expected a slight decline to 3.6 percent. However, the analysts were calm. “The headline numbers always get the most attention, but it’s important to look at core inflation because that is the basis of all the Fed’s decisions,” said Art Hogan, chief market strategist at asset manager B. Riley. The core rate, which excludes the volatile prices for energy and food, fell further in September – to 4.1 from 4.3 percent in August.
Dollar rises, Birkenstock loses
The expectation of persistently high interest rates pushed the US currency into the black. The Dollar index advanced 0.7 percent to 106,576 points. In return, the euro lost 0.8 percent to $1.0529. Meanwhile, investors threw government bonds out of their portfolios. In return, the yield on 10-year US bonds advanced to 4.6969 from 4.597 percent on Wednesday. Gold fell 0.3 percent to $1,868 per troy ounce.
In terms of individual stocks, shares expanded from Birkenstock after a disappointing stock market debut. The shares of the health shoe group lost 6.6 percent to $37.55. On Wednesday they ended their first day of trading on Wall Street at $40.20, 12.6 percent below the issue price. “It is always difficult to comment on the development of a stock price on the very first day,” said Javier Gonzalez Lastra of broker Tema. “The timing of this IPO was also somewhat unfortunate, as it followed LVMH’s disappointing third-quarter results.”
Strike at Ford’s largest factory weighs on shares
The US dialysis company’s shares also came under pressure DaVita, which lost almost three percent. The securities of competitor Baxter also reduced previous gains and were down 3.1 percent. DaVita had announced that it assumed that the positive study results with Novo Nordisk’s diabetes drug Ozempic had “limited use” in kidney patients. On Wednesday, the publication pushed the shares of several dialysis companies significantly into the red. DaVita initially gained a good two percent before going into the red. Novo Nordisk closed more than four percent higher. Flew out of the depots Ford title. The car manufacturer’s shares fell by a good two percent. The United Auto Workers (UAW) union is now also on strike at the largest Ford plant.
On the other hand, the titles of the pharmacy chain were in demand Walgreens Boots Alliance, which increased by more than seven percent according to quarterly figures. The $1 billion in cost cuts that Walgreens announced amid a bleak outlook for its profits appeared to be well received by investors.