Dow Jones is gaining momentum
Balance sheets let investors breathe again
2/8/2022 10:24 p.m
The reporting season is better than expected as several companies post solid profits. But the stockbrokers are already plagued by the next concerns: Due to inflation, the US Federal Reserve could raise interest rates as early as March.
After a slow start, Wall Street is gaining momentum. The US Standard Value Index Dow Jones climbed 1.06 percent to 35,462.78. The broad one S&P 500 rose 0.84 to 4521.54 points and the tech-heavy Nasdaq by 1.28 percent to 14,194.45 points. “For the past few weeks, earnings season has been big on investors’ minds,” said Art Hogan, chief investment strategist at wealth manager National Securities. “The bottom line was that the numbers were better than expected.” However, stockbrokers continued to puzzle over the pace of the expected US interest rate hikes.
“The vitality of the US job market increases the likelihood that the Federal Reserve will raise interest rates by half a percentage point in March,” said analyst Ricardo Evangelista of brokerage house ActivTrades. These speculations could be fueled on Thursday if US inflation surprises on the high side. Experts expect the inflation rate to rise to 7.3 percent year-on-year in January. In this environment, financial stocks rose again. When interest rates rise, you can expect higher profits from the classic lending business.
The shares of Bank of Americaand from JPMorgan increased by 1.77 percent and 1.87 percent respectively. However, investors withdrew from the crude oil market. The US oil variety STI fell by two percent to $89.65 per barrel (159 liters). The price of oil also went down. “The resumption of indirect talks between the US and Iran could lead to a reopening of international markets to Iranian oil,” predicted ActivTrades expert Evangelista.
Pfizer disappoints with sales
On the stock market, the titles flew by Pfizer from the depots, although the pharmaceutical company sees itself on a record course after doubling sales. However, the outlook for the income from the Covid vaccine and the pill for the treatment of corona patients fell short of expectations. It remains to be seen whether sales of corona products will be sustainable in the long term, commented analyst Chris Schott from Bank JPMorgan. Pfizer shares lost 2.83 percent. In their wake, the US-listed papers of the German development partner for the Covid vaccine slipped, BioNTechdown 7.64 percent.
coty delighted investors, on the other hand, with raised full-year targets. In addition, the cosmetics group, in which the German billionaire family Reimann has a significant stake, presented solid quarterly results, praised analyst Stephanie Wissink from the investment bank Jefferies. Coty shares rose 8.04 percent, the strongest since three months ago. Peloton scored with a leadership change and an austerity program. The fitness equipment maker’s stock rose 25.28 percent after losing more than 70 percent at times in the past three months. This is the biggest price jump in its history. “The stock is rising on the expectation that the new boss will restructure the company and shed dead weight,” said Louis Navellier, chief investor at wealth manager Navellier & Associates.