Monday 17th May 2021
Investors are looking to inflation
US stock exchanges close in the red
The procrastination spreads on Wall Street. After the race to catch up last week, investors are holding back again. The Dow Jones closed slightly in the red. The topic of inflation remains present – even if the US Federal Reserve tries to allay the worries.
After the clear recovery movement, Wall Street closed the week at the start of the week moderate discounts shown. Despite statements by representatives of the US Federal Reserve that it is not yet time to tighten monetary policy again because the current rise in inflation is likely to be temporary, the issue remains inflation continue to focus.
The Dow Jones Index closed 0.2 percent lighter at 34,328 points, the S&P 500 fell 0.3 percent. For the tech-savvy Nasdaq Composite it went down 0.4 percent.
The worries of one Change in US monetary policy last week had given the S&P 500 its sharpest decline since the end of February. The soaring technology stocks are particularly prone to inflation fears. The Nasdaq composite has already fallen for four weeks in a row, its longest losing streak since August 2019. Therefore, the statements of Fed members should continue to be particularly in focus.
For Fed Vice President Richard Clarida, the higher inflation is only temporary. The US economy has not yet made the progress necessary for the Fed to reduce its asset purchases, the central banker said. Even the President of the Federal Reserve Bank of Atlanta, Raphael Bostic, sees the time not come to cut back on economic support from the US Federal Reserve. The pre-market published Empire State Manufacturing The index for May fell slightly more than expected.
Bitcoin remains under pressure
The Bitcoin was still under pressure, but was able to recover somewhat from its daily low of a good $ 42,000. On Friday, the cryptocurrency was still trading at around $ 49,600. After Tesla boss Elon Musk had already announced that he would no longer accept Bitcoin as a means of payment for environmental reasons, which had created downward pressure, he waited with a tweet that Tesla would sell its Bitcoin holdings or may have already done so. However, Musk has now made it clear that Tesla has not sold any bitcoins. For the TeslaShare was down 2.2 percent. The dollar showed a little weaker. The dollar index fell 0.2 percent.
The Oil prices gain on expectations that economic recovery in the US and Europe will lead to higher demand. The Industrial production in China meanwhile also grew strongly in April, but the momentum has weakened somewhat compared to the previous month. However, the analysts’ expectations were slightly exceeded.
Also at Gold price it went up a bit. The precious metal benefited from the weaker dollar and ongoing inflation concerns. At the Bond market US 10-year bond yields rose 1.8 basis points to 1.64 percent after falling slightly on Friday.
AT&T and Boeing give in
For the share of AT&T it went down 2.7 percent. The telecom group and the media company Discovery Inc are amalgamating their media assets in a new listed company. The telecom company ends a big bet on success in the entertainment industry after less than three years. AT&T also announced that it would adjust its dividend policy to reflect the structure of the new media business. The A share of Discovery buckled by 5.1 percent.
The BoeingShare lost 0.2 percent. According to an order from the US aviation authority FAA, the US aircraft manufacturer must subject all older type 737 aircraft to an inspection. The air Line United Airlines (plus 2.3 percent) wants to increase capacity in July and add hundreds of flights, as more people are now vaccinated against Covid-19.
The share of At Home Group climbed 3.9 percent. The largest shareholder, CAS Investment Partners, has spoken out in a letter to the board of directors against the planned sale for around 2.4 billion dollars to the private equity firm Hellman & Friedman. He rates At Home at $ 36 per share. However, a price above $ 70 per share would better reflect development and potential growth.
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