Thursday, January 13, 2022
Black Thursday on the Nasdaq
US stock markets crash badly
Just before the weekend, US standard values on Wall Street are falling. Technology stocks are particularly affected. Meanwhile, investors are hoping for tomorrow’s accounting season.
One day before the start of the accounting season, the US stock exchanges closed with price discounts. After a day-long rally, profit-taking set in in late trading. The US Standard Value Index Dow Jones went 0.5 percent lower to 36,113 points from trading. The tech-heavy one Nasdaq fell 2.5 percent to 14,806 points. The broad one S&P 500 lost 1.4 percent to 4659 points.
Investors were hoping for fresh buying impulses on the stock market from the US accounting season. The big banks open on Friday Citigroup, JPMorgan and Wells Fargo the round of numbers. In the previous quarterly results, the financial institutions had made extensive provisions for possible defaults by their borrowers, said Fall Ainina, senior analyst at wealth manager James Investment. “But now the situation has improved significantly.”
Airlines on the rise
Nevertheless, the shares of the three banks mentioned fell by up to 1.4 percent. Wells Fargo shares hit a three-and-a-half-year high at $57.18. On the other hand, things went down for the big technology groups such as Amazon, Apple, Facebook, Netflix and the Google mother Alphabet. They lost up to 2.7 percent. According to experts, higher interest rates will devalue the future profits of these high-growth companies.
Among the winners in the US stock market was Delta Airlines with a price increase of 2.1 percent. Thanks to strong holiday sales, the airline made earnings of $0.22 per share in the past quarter, almost twice as much as expected.
Hopes for the current quarter are pinned on March as January appears to be difficult due to winter weather and the omicron variant of the coronavirus, wrote analyst Helane Becker of asset manager Cowen. There are first signs that sick leave from staff has peaked. In the slipstream of Delta, the rivals won the titles American Airlines and United up to 4.5 percent.
Ford is listed in three digits for the first time
exceeded for the first time in its history ford a stock market value of $100 billion. The carmaker’s stock, which has roughly doubled in the past year, is up 2.2 percent in late trading. Stockbrokers justified the surcharges with the electric car optimism. Ford plans to triple production of its Mustang Mach-E model to 200,000 units per year by 2023. In total, the carmaker wants to sell 600,000 electric models a year by then.
Ford is now worth more than its rival General Motors, which has a market cap of $88.61 billion. The electric car manufacturer Tesla even reaches a market value of more than one trillion dollars.