Dow Jones wins easily
Consumer sentiment supports US stock markets
12/23/2022, 11:00 p.m
The US Federal Reserve will probably stick to its interest rate policy. This is supported by a high gross domestic product and a good unemployment rate. A big loser among stocks is automaker Tesla.
On the last trading day before the long Christmas weekend, Wall Street showed slight premiums. Of the Dow Jones Index gained 0.5 percent to 33,204 points. Of the S&P 500 improved by 0.6 percent and for the Nasdaq Composite was up 0.2 percent. 2,032 (Thursday: 698) price winners faced 1,086 (2,442) losers. 90 (119) titles closed unchanged.
Against the background of significantly lower sales, trading was calm. The latest economic data indicated that high inflation is dampening US consumers’ willingness to spend. Private consumption is considered the mainstay of the US economy. However, this only had a slight impact on the indices. On the other hand, inflation expectations fell again.
Although personal income rose slightly more than expected in November, US consumer spending increased less than expected. Meanwhile, the inflation barometer closely watched by the US Federal Reserve, the PCE price index, indicated that inflationary pressure was easing. The index rose 5.5 percent year-on-year in November; in October the increase was still 6.1 percent. On the other hand, the mood among US consumers brightened more than expected in December, and inflation expectations fell. Durable goods orders contracted more than expected in November. On the other hand, sales of new buildings increased in November, contrary to expectations.
Tesla loses again
On the corporate side, the news situation was thin just before the holidays. Tesla-Shares, which were down nearly 9 percent on Thursday, fell another 1.8 percent after CEO Elon Musk announced he would stop selling Tesla shares for the time being. Meta on the other hand, after initial losses, 0.8 percent gained. The Facebook parent has agreed with users of its platforms to settle a class action lawsuit in connection with the disclosure of user data in exchange for payment of 725 million US dollars.
It went up significantly with the oil prices. Brent and WTI prices gained up to 3.7 percent. Observers referred to the unusually drastic cold snap in parts of the USA. Meanwhile, Russia’s deputy prime minister fueled fears of a supply shortage by saying that Russia could cut its daily production by 500,000 barrels to 700,000 barrels next year. He was reacting to the price cap for Russian oil decided by the EU.