Dow Jones loses easily
Record inflation dampens investor sentiment
02/10/2022 10:26 p.m
Wall Street is on edge with US inflation soaring to a 40-year high. Fear of a rapid tightening of interest rate policy by the US Federal Reserve is growing. Meanwhile, the aluminum price rally continues.
Resurgent speculation that the US Federal Reserve will raise interest rates more quickly is causing problems for Wall Street. However, encouraging company balance sheets prevented larger sales. The US Standard Value Index Dow Jones was just down at 35,241.59 points. The broad one S&P 500 and the tech-heavy Nasdaq lost about 1.81 and 2.10 percent respectively. Selling pressure was more noticeable in government bonds.
Investors were nervous about the highest US inflation in 40 years. There is no indication that inflation will soon peak, said Peter Cardillo, chief economist at investment firm Spartan. “That could mean that the Fed has to become more aggressive.” A first rate hike in March is considered safe on the stock exchange. Investors are now estimating the probability of an increase of half a percentage point to almost 50 percent. Before the numbers, the rate was around 30 percent. On the foreign exchange market, however, speculation about a drastic increase in interest rates quickly died down. the dollar indexwhich tracks the rate against major currencies, rose 0.19 points to 95.68 points.
Aluminum price rises again
Meanwhile, the aluminum rally continued due to looming supply shortages. The base metal, used in aircraft and car construction, was at its highest price since the summer of 2008. Companies have cut production due to high energy prices and Chinese efforts to reduce air pollution for the Olympic Games, said Saxo Bank analyst Ole Hansen.
China is the world’s largest aluminum producer. The price of the US crude oil grade STI gained and rose to about $90 a barrel, in touch with its recent seven-and-a-half-year high. It is unclear whether Iran will return to the nuclear deal and thereby be able to offer its oil again on the world market, said analyst Henry Rome from the consulting firm Eurasia.
Disney and Mattel convince with numbers
When the stock values moved Walt Disney into the limelight. Thanks to its popular streaming service Disney + and well-attended theme parks, the entertainment group presented quarterly results above market expectations, commented analyst Doug Creutz from asset manager Cowen. In addition, the pricing power in amusement parks promises a further improvement in earning power. Disney papers rose at times by 3.42 percent, as much as a year ago.
The titles of mattel rose 7.65 percent to $24.49. They faced the biggest one-day gain in more than a year and a half. Analyst Jaime Katz from the research house Morningstar praised the new business goals of the “Barbie” maker well above market expectations. With the strong results of the past quarter, it should be positively emphasized that the operating margin increased again despite increased costs.
Also Over initially surprised positively with its business figures. The emergence of the omicron variant of the corona virus had little effect on the booking figures for the transport service provider in the past quarter, wrote analyst Brent Thill from the investment bank Jefferies. However, the company’s medium-term goals were disappointing. The profit of five billion dollars targeted for 2024 fell short of market expectations. The stock then turned negative and lost 6.07 percent.