Dow Jones closes in positive territory
Strong tech sales tempt investors to buy
7/27/2022 10:33 p.m
The gloomy mood due to the Fed’s interest rate decision is lightened somewhat: the technology groups Microsoft and Alphabet can score with strong sales on Wall Street. The biggest winner is the audio streaming service Spotify.
Strong corporate balance sheets from corporations like Microsoft or Google’s parent Alphabet are attracting investors back to Wall Street. The US Standard Value Index Dow Jones rose 1.37 percent to 32,197.59 points. The broad one S&P 500 and the tech-heavy Nasdaq increased by 2.62 and 4.06 percent respectively. “A positive reaction to the latest quarterly earnings has been incredibly difficult to come by given the negative market sentiment surrounding the technology industry,” said Sophie Lund-Yates, senior analyst at brokerage firm Hargreaves Landsdown.
Microsoft and alphabet missed market expectations with their quarterly results, but increased their sales. Microsoft was relieved by an upbeat outlook and Alphabet’s surprisingly robust ad revenue. The shares of the software group and the search engine operator then rose by seven or 7.66 percent. Investors also grabbed papers from other technology groups.
The titles of Spotify headed for a big daily gain, up as much as 12.31 percent. Based on a quarterly result above market expectations, the music streaming service raised its full-year targets. Spotify was convincing in almost all key figures, praised analyst Andrew Uerkwitz from the investment bank Jefferies.
US crude oil grade STI becomes more expensive
Against the background of the risk of recession, the music business will develop better than the rest of the entertainment industry. T-Mobile US is also more optimistic about the future and is now targeting 6.3 instead of 5.3 to 5.8 million new contract customers for 2022. In addition, the mobile subsidiary of Deutsche Telekom presented a surprisingly strong quarterly result. T-Mobile shares gained 5.23 percent.
The next rate hike by the Fed also worried the stock market traders. In view of the high rate of inflation, the US Federal Reserve again raised its key interest rate sharply by 0.75 percentage points. It is now in the range of 2.25 to 2.5 percent, as the Federal Reserve (Fed) announced. With this measure, the central bank wants to get the high consumer prices under control. The currency watchdogs around Fed boss Jerome Powell assume that further increases should be appropriate.
The US crude oil variety STI increased in price by 3.5 percent to $98.3 per barrel (159 liters). In addition to the surprisingly significant decline in inventories, stockbrokers justified the development with the gas crisis in Europe due to the throttled deliveries from Russia. As a result, customers increasingly turned to oil as an energy source.