Late rally creates gains
Apple and Visa are saving the day for US investors
01/28/2022 10:23 p.m
The US Federal Reserve’s tighter monetary policy has the stock market firmly in its grip this week and has unsettled investors. At the weekend, however, the balance sheets of Apple and Visa will provide an upswing.
The New York stock exchanges made profits again this week after a roller coaster ride. After a weak start, a rally in the final two hours ensured that the Dow Jones Industrial brought in a significant plus of 1.65 percent. Among other things, supported by strong numbers from Apple, the leading index went along 34,725.47 points close to daily high from trading. The end result of a fickle week was still clearly positive at 1.3 percent. The one covering the broad market S&P 500 extended gains to 2.43 percent in late trade by rising at 4431.85 points Castle. Especially the tech-heavy ones Nasdaqstock exchange caused a sensation with the Nasdaq 100 ultimately jumping by 3.22 percent 14,454.61 points.
The statements by US Federal Reserve Chairman Jerome Powell, which had been interpreted as a sign of a more rapid tightening of monetary policy, resonated on the financial markets. “We knew it had to happen at some point, and now that we’re exiting this environment and moving into a different regime, we should expect a little more volatility,” said Darrell Spence, economist at Capital Group. Central bankers are on the alert, above all, because of the high level of inflation. US consumer spending fell 0.6 percent month-on-month in December due to strong inflation, while consumer prices rose as expected by 0.5 percent over the same period.
Fear of supply disruptions kept prices high on the crude oil market. Due to the Ukraine crisis and the fighting on the Arabian Peninsula, among other things, the price of oil has risen by 15 percent since the beginning of the year. The analysts at ANZ Bank warned that the Opec+ countries would also have problems meeting their production quotas. The reserve capacities are too small to cushion disruptions caused by geopolitical crises. the sort Brent from the North Sea rose by one percent to $90.38 per barrel (159 liters) and recorded the sixth weekly gain in a row.
A record quarterly result brought Apple a price increase of six percent. Despite the ongoing supply chain problems and the global shortage of chips, the quarterly results clearly exceeded market expectations, praised analyst Abhinav Davuluri from the research house Morningstar. However, it will be difficult to maintain the current pace of growth as the demand boom for computers and iPads caused by the pandemic ebbs.
It could shine too Visas: Profit for the first fiscal quarter rose 25 percent year-on-year to $3.9 billion. The credit card provider benefited from higher spending by US consumers. Both the volume and the number of transactions increased. Visa shares rose 10.1 percent. On the other hand, it went down more than 5.7 percent Caterpillar-Shares. The construction machinery manufacturer anticipates pressure on margins due to increases in production and higher labor costs. VF Corp slipped 6.8 percent after the Vans owner lowered its full-year sales guidance. A bleak outlook also left the storage hardware maker Western Digital drop by 7.4 percent.