Dow barely moves
Wall Street on the road to recovery
24.05.2024, 23:44
Listen to article
This audio version was artificially generated. More info | Send feedback
The losses on the US stock markets the day before were heavy, but at the end of the week a little confidence is returning to Wall Street. The Dow barely moved, but the Nasdaq is up significantly. Particularly popular: shares of the shoe manufacturer Deckers Outdoor.
After the slump of the previous day, the American stock markets have found a more positive end to the week. The broad S&P500 rose by 0.70 percent to 5305 points. The technology-heavy Nasdaq rose 1.1 percent to 16,921 points. The Dow Jones Industrial barely moved, rising 0.02 percent to 39,070 points. Yesterday, it had recorded its biggest daily loss in over a year, falling by around 1.5 percent. On Monday, the US stock exchanges will be closed due to Memorial Day.
Recent comments from representatives of the US Federal Reserve and higher than expected inflation data generally dampened investors’ appetite for risk. November is now increasingly seen as a possible time for an interest rate cut in the US instead of September.
After the companies’ quarterly reports were generally good, investors are now focusing more on the central bank and economic development, said investment expert Kim Forrest of Bokeh Capital Partners. According to data from Friday, orders for durable goods rose by 0.7 percent in April, compared to a decline of 0.8 percent that economists surveyed by Reuters had expected. The University of Michigan’s final consumer sentiment index for May was 69.1, above expectations of 67.5. The dollar index was 0.3 percent lower at 104.70 points. On the oil market, the price of the North Sea Brent variety rose by around 0.9 percent to $82.13 per barrel.
Deckers over $1000 for the first time
The shares of the HR software provider plummeted on the stock market Workday by more than 15 percent. The company expects lower customer growth and lowered its revenue forecast for the 2025 financial year. Various brokers, including Barclays and Jefferies, subsequently lowered their price targets for the stock.
Shares of Deckers Outdoor gained more than 14 percent and are worth more than $1,000 for the first time. The shoe company is benefiting from the popularity of its UGG boots and Hoka running shoes among Americans. “Fiscal 2024 was a banner year for Deckers, as the company’s two major brands delivered some of the strongest growth in footwear and demonstrated their ability to continue to attract new customers,” wrote Paul Lejuez, an analyst at Citi Research. The company’s stock has been on a tear since early last year and is up about 35 percent this year. In contrast, Nike’s share price has fallen about 15 percent this year.
Shares of Intuitive lost more than eight percent. The developer of accounting software missed investors’ expectations with its outlook for the third quarter. The retail chain Ross Stores On the other hand, it was able to score points with better-than-expected quarterly results and a more optimistic outlook. The shares gained over ten percent.
Cryptocurrencies also provided a topic of conversation at the end of the week. The US Securities and Exchange Commission (SEC) surprisingly approved the applications of various trading venues for exchange-traded funds (ETFs) tied to the cryptocurrency Ether. This could pave the way for trading in such products (Ether spot ETFs) this year. The second largest after Bitcoin Cyber currency ETH nevertheless lost around two percent to 3675 dollars. Since the beginning of May, the price has increased by a good 23 percent.
You can find out more about today’s stock market events here.