Interest rate in focus
Investors are hitting the brakes on Wall Street
11/14/2022 10:32 p.m
After recent strong gains, the new week on the US stock exchanges begins somewhat quieter. The major indices are coming back. Speculations about the Fed course are still the topic. Different signals are coming from the central bank.
After the recent strong premiums, the US stock exchanges started the new trading week more easily. The focus was on statements by members of the US Federal Reserve. Of the Dow Jones Index closed 0.6 percent lower at 33,537 points. Of the S&P 500 noted 0.9 percent lighter. For the Nasdaq Composite was down 1.1 percent. Most recently, hopes of a less rigorous course in interest rate hikes by the US Federal Reserve and slight corona easing in China had fueled the mood on Wall Street.
Statements by Vice Chairwoman of the US Federal Reserve Lael Brainard in the course of trading also pointed in this direction. “I think it will probably be appropriate to choose a slower rate of hikes soon,” she said, adding that past and future rate hikes will slow the economy in ways that are yet to be seen. This was offset by comments over the weekend from Fed Governor Christopher Waller, who said the Fed has a “long way to go” and would like to see more similar data before it takes its foot off the gas.
However, there were also skeptical voices on the market. Inflation is still at a high level and even if the Fed slows down the pace of interest rate hikes slightly, the peak in interest rates could only be reached later than previously expected.
oil prices fall
Of the dollar recovered somewhat from recent sharp falls. The index was up 0.5 percent. The hawkish statements by Fed Governor Waller and the prospect of further interest rate increases helped here.
the oil prices traded lower after recent gains. Hopes for China’s reopening were dampened over the weekend after new record levels of Covid-19 cases were reported in Beijing and other major cities. Opec has also left its supply and demand forecasts largely unchanged, warning that major uncertainties make the outlook for energy markets highly uncertain. The price of Brent fell by 3.4 percent and the WTI price by 4.2 percent.
At the bond market Yields recovered somewhat earlier in the week from Thursday’s tumble following inflation data. There was no trading on Friday due to a public holiday. The 10-year yield rose 5.5 basis points to 3.87 percent. Of the gold price appeared almost unchanged.
Opiant pharmaceuticals are skyrocketing
In the case of the individual values, the share showed itself to be Walt Disney with a minus of 0.8 percent. The “Wall Street Journal” had reported on a position paper to the board of directors of the entertainment group by CEO Bob Chapek, according to which layoffs in the course of cost cutting are likely.
at Amazon CEO Andy Jassy starts to cut costs. The online retailer is on the verge of laying off thousands of employees, insiders said. Around 10,000 employees could be affected. In the UK, Amazon is also facing a lawsuit over its practices regarding third-party listings on its website. Damages of around 1 billion euros are being demanded. The stock fell 2.3 percent.
In the dispute over tracking users’ locations Google reached an agreement with prosecutors from 40 US states. As they announced, they have agreed with the Alphabet subsidiary on a sum of 391.5 million dollars that the company has to pay. Alphabet stock closed 0.7 percent lower.
The shares of Opiant Pharmaceuticals shot up 112 percent to $20.10. British drugmaker Indivior will pay $20 a share in cash for Opiant, more than double Friday’s close of $9.50. The bid could even go as high as $28. Eight dollars depended on advances in drug development, it said.