First time since August
Dow swings above 34,000 points
11/22/2022 10:54 p.m
The US stock exchanges presented themselves in good shape on Tuesday. For the first time in three months, the Dow climbed back above the 34,000 point mark. The papers of the fashion retailer Abercrombie & Fitch are particularly in demand. Things are worse for Chinese companies.
Encouraging corporate balance sheets attract investors to Wall Street. However, fearing a setback for the global economy, they shied away from even larger purchases. The US standard value index Dow Jones closed 1.2 percent higher on Tuesday at 34,098 points. Most recently, it broke the 34,000 mark in mid-August. The tech-heavy Nasdaq advanced 1.4 percent to 11,174 points. The broad S&P 500 gained 1.4 percent to 4003 points.
The mood is again being shaped by the pandemic in China, said Thomas Hayes, manager at wealth manager Great Hill. The government in Beijing is reacting to the increasing number of infections with increased restrictions. This put the US shares of Chinese companies like bilibili, pinduoduo or JD.com to. They lost up to 2.7 percent.
On the cryptocurrency market, the price of the Bitcoin at $16,097, just above its recent two-year low. The cryptocurrency broker and lender genesis dismissed media reports of impending bankruptcy as a result of the collapse of the FTX stock exchange. However, the fear of contagion effects will not be dispelled, commented analyst Timo Emden from Emden Research.
On the other hand, one of the favorites was best buy with a price increase of almost 13 percent. That was the biggest price jump in two and a half years. Thanks to discount campaigns, the company only expects a drop in sales of ten instead of eleven percent for the year as a whole. In the past quarter, the decline was 10.4 percent. Analysts had forecast a minus of 12.9 percent. Earnings were also surprisingly high at $1.38 per share. Analyst Michael Baker from the research house DA Davidson pointed out that the company had only exceeded the already very low expectations.
The numbers and the outlook Abercrombie & Fitch were also well received. The fashion company’s stocks posted their biggest one-day gain in five years, up more than 21 percent. The company made a profit of $0.01 per share for the quarter instead of an expected loss of $0.16 per share. In addition, the drop in sales at the end of the year of two to four percent will probably only be about half as high as feared.
A media report about Mark Zuckerberg’s planned withdrawal from the Meta leadership in the coming year briefly put the Facebook parent in the spotlight. The company immediately rejected these speculations. meta shares recorded a plus of 1.4 percent.