Thursday, November 18, 2021
Dow Jones is losing easily
Inflation is increasingly unsettling investors
John Williams, head of the New York Fed branch, is causing uncertainty on Wall Street. He warns that inflation is showing up in more and more areas. The Dow Jones closed with a minus of 0.2 percent. The biggest loser is Cisco.
Convincing company results have helped some of the US stock exchanges to new record highs. The Nasdaq and S&P 500 barometers both closed trading higher than ever before. However, fears of inflation weighed on the mood. The tech index Nasdaq Composite rose by 0.5 percent to 15,993 points. The broader one S&P 500 advanced 0.3 percent to 4704 points. Of the Dow Jones Index the standard value, however, closed 0.2 percent lower at 35,870 digits.
Comments by the US Federal Reserve Banker John Williams, who heads the New York Fed branch, caused nervousness. He said inflation is showing up in more and more areas. At the same time, he spoke of increasing expectations that inflation would pick up in the future. Investors worry about this, commented investment strategist Sam Stovall from analyst firm CFRA Research. The Fed may have to admit that inflation is not just temporary.
Among the individual values stood out Nvidia out, which gained 8.2 percent. The memory chip manufacturer convinced investors with quarterly figures and forecasts. Retail groups also generated optimism. Macy’s raised its earnings target for the full year and outlined plans for a possible spin-off of the internet business. The papers jumped 21 percent. The price of Kohl’s rival rose by 10.6 percent. The company had raised its business forecast.
The Dow Jones was mostly from Cisco pulled down. The shares lost 5.5 percent. The US network equipment supplier sees its business being burdened by supply chain problems and the resulting higher costs. The stock exchanges in Europe ran out of steam after a sustained chase for records. The German leading index Dax went out of trading with a loss of 0.2 percent to 16,221 points after reaching a new high during the day.