Dow Jones closes in positive territory
Tech values and airlines on the rise
04/13/2022, 11:01 p.m
After two weak stock market days in the USA, the signs are pointing to recovery on Wednesday. After a sluggish start to trading, prices are picking up speed. This is especially true for tech stocks. The papers of airline companies are also experiencing a boom.
The US stock exchanges ended trading on Wednesday with significant price gains. New inflation figures were quickly ticked off. Instead, investors focused on the accounting season that was just beginning, which, along with some disappointments, also provided reasons for optimism. Of the Dow Jones Index gained 1.0 percent. The S&P 500 was up 1.1 percent and the Nasdaq Composite was up 2.0 percent. The interest-sensitive technology stocks received additional tailwind from the market interest rates, which fell again somewhat.
Observers explained the rising equity prices and falling bond yields with the hope that inflation may have peaked, although March producer prices tended to contradict that assumption. These increased more than analysts had expected and were 11.2 (February: 10.0) percent above the level of the same month last year. In the core rate, the increase over the month was even more than twice as strong as expected at plus 1.1 percent. In addition, the previous month was revised slightly upwards.
This confirmed the US Federal Reserve’s monetary policy course of attempting to contain the high inflation with strong tightening. Fed Governor Christopher Waller underscored this by saying that even if inflationary pressures eased, the Fed would need to raise interest rates. But he also noted that inflation may have peaked.
There were no new developments in the Ukraine war. Observers expect Russian attacks to increase again in the coming days, especially in eastern Ukraine. Just the day before, Russian President Vladimir Putin had announced that the military operation would continue “as planned”. So there doesn’t seem to be any hope of a negotiated solution at the moment. Rather, the increasingly visible negative effects on the global economy are moving into focus.
Delta Airlines are growing
In the upcoming US reporting season, the quarterly figures from the US banks are the first high point. A disappointment delivered here JPMorgan Chase. The group posted a lower profit in the first quarter than analysts had expected. The share lost 3.2 percent and was the weakest Dow value.
Blackrock (-0.2%), on the other hand, increased the surplus by almost a quarter of a billion dollars in the first quarter, beating market expectations. Wells Fargo, Citigroup and Goldman Sachs will follow on Thursday.
Delta Airlines (+6.2%) is benefiting from the renewed increase in air traffic. The company reported sales for the first quarter that were well above expectations and a lower loss than feared. Delta is also optimistic that passenger traffic can keep pace with rising fuel costs. Southwest Airlines were up 7.5 percent in the slipstream of Delta and American Airlines by 10.6 percent. The transport sector was among the leading gainers with a plus of 1.5 percent.
For the Paypal stock it went down 2.8 percent. The US retail group Walmart has poached the CFO of the payment service provider, John Rainey, and appointed him CFO with effect from June 6th. Walmart announced in December that its current chief financial officer, Brett Biggs, would leave the company by early next year and oversee the transition. the Walmart stock gained 2.6 percent.
Oil prices keep going up
The dollar bounced back slightly as yields fell. Of the dollar index fell 0.4 percent after hitting its highest level in 23 years. Above all, however, the forthcoming interest rate hikes by the US Federal Reserve should support the greenback. Because even if core inflation eased somewhat in March in the consumer prices published the day before, the Fed is likely to stick to its course of aggressive monetary tightening, it said.
the oil prices continued to gain despite the state’s Energy Information Administration reporting a surprisingly strong build-up in US crude inventories. However, Russian President Putin has said talks with Ukraine are at a “dead end,” dashed hopes of a diplomatic solution and an easing of supply shortages. In addition, China’s oil imports fell 0.1 percent year-on-year in March, falling well short of expectations for an 8 percent gain as the lockdown in Shanghai weighed on the country’s economy.
gold was also asked. Observers referred to concerns about the economy as a result of high inflation, but also to the drop in interest rates on bonds and the somewhat weaker dollar.