Wednesday 17th November 2021
Little momentum on Wall Street
Dow Jones loses the previous day’s profits again
Investors are looking forward to the retail sector hoping for strong Christmas sales. Otherwise, however, mixed data from the real estate market is dampening sentiment on Wall Street. The US leading index Dow Jones Industrial falls below 36,000 points again.
After the impact of the previous day in the wake of surprisingly strong economic data, Wall Street has shown restraint. Traders missed new impulses given the fact that the indices are already moving towards their record highs. In terms of economic data, only the construction starts or permits for October were published, but the data were inconsistent. “Investors are not turning their backs on the stock market, but we believe that rotation is responsible for the inconsistent market development,” says market strategist Peter Cardillo of Spartan Capital.
Of the Dow Jones Index noted 0.62 percent lighter at 35,931 meters. Of the S&P 500 and the Nasdaq Composite each lost 0.3 percent. According to initial information, there were 1,101 (Tuesday: 1,545) price winners, 2,266 (1,781) losers and 120 (138) unchanged shares on the Nyse.
The debt ceiling came into focus once again. Treasury Secretary Janet Yellen said that the government could not meet its financial obligations until December 15 if Congress does not raise the debt ceiling. This is a minor concern for the markets, but it will likely settle as the government resolves the problem soon. “The market knows Washington will wait until the last minute,” said Dave Wagner, portfolio manager and analyst at Aptus Capital Advisors.
Overall, however, the environment for equities remains favorable – despite the interest rate fantasies, it was said. “Stocks pay way more than bonds,” said Brooks Macdonald’s investment strategist Edward Park. The fear of missing out is still there. As on the previous day, business figures from the retail sector were at the top of investor interest. Because with eagle eyes it is checked whether the galloping inflation reveals skid marks in the business cards of the industry representatives.
Retail values at a glance
Lowe’s rose by 0.4 percent and reached a record high over the course of the year. The do-it-yourself retailer beats market expectations in terms of sales and earnings in the third quarter and is raising its outlook. The interior fitter’s share reacted with a price loss of 7.6 percent La-Z-Boy on the second quarter figures. The company warned of interruptions in the supply chain – especially due to lockdowns in Vietnam. The company reported otherwise positive business figures – with record sales. In addition, the forecasts were also trumped.
Even with the retailer Target it went well, the market estimates were also exceeded – the outlook raised. However, the price fell by 4.7 percent. The previous day had actually positive business figures from Walmart not supported the course. Criticism was sparked by the rather abundant increase in inventories at Target.
Pfizer (+2.6 percent) also want to use their corona pill in high-risk patients. Star bulk carriers (+2.7 percent) benefited from the difficulties in supply chains. The shipping company posted good business figures in view of increasing volumes.
Visa sagged 4.7 percent. The US retail group Amazon will no longer accept payments with UK-issued Visa credit cards. The reason for this is the high fees charged by the credit card company, as Amazon announced.
Dollar consolidates rally gains
Of the U.S. dollar Consolidated its spreads after the latest rally, with the dollar index trending 0.1 percent lower. Traders spoke of easy profit-taking as the environment remains favorable for the greenback in view of the interest rate hike expectations.
the Oil prices fell significantly with reports that US President Joe Biden is alleged to have asked China’s ruler Xi Jinping to release parts of China’s oil reserves. Similar steps are being considered in the US. The fact that crude oil inventories fell surprisingly had no effect.
at gold However, investors took hold of it again. The precious metal serves as a protection against inflation, the stopped dollar rally helped.
They benefited from the search for security Government bonds. The ten-year return fell 4.6 basis points. Participants also saw this as a countermovement to the recent Treasury sell-off.