Tuesday, December 21, 2021
Nike and Mikron give confidence
US stock exchanges are raging
After the weak start to the week, the New York stock market can recover. Several announcements by the US government made investors optimistic and at least let worries about the spread of omicrons take a back seat.
The US stock exchanges recovered strongly on Tuesday from the significant losses at the beginning of the week. the Dow Jones Index closed 1.6 percent higher at 35,493 points, the S&P 500 gained 1.8 percent. The technology-heavy one Nasdaq Composite quoted 2.4 percent firmer. The fears regarding the further spread of the highly contagious Omikron variant, which caused significant losses on the stock exchanges on Monday, remained, however. According to the US health authority CDC, the new mutant has established itself as the predominant virus variant in the USA. Added to this are the re-imposed restrictions around the world, which are likely to have another negative impact on the global economic recovery.
US President Joe Biden is planning to curb the spread of the virus through free rapid tests. In addition, support for hospitals is to be increased and the vaccination campaign expanded. The developments around the trillion dollar social and climate protection package by US President Joe Biden, which is on the brink of tipping, also ensured relaxation. It is said that there was a conversation between Biden and the Democratic Senator Joe Manchin to persuade him to agree. This is crucial because the Democrats in the US Congress cannot allow themselves a single deviator if they want to pass the law.
On the economic side, the deficit in the US current account rose more significantly than expected in the third quarter of 2021. In addition, the deficit for the second quarter was revised upwards.
Nike and Micron by numbers with course jumps
The sporting goods manufacturer Nike In its second fiscal quarter, despite declining sales in China and ongoing problems in the supply chain, increased sales and profits, exceeding analysts’ expectations. The share gained 6.1 percent.
The memory chip manufacturer Micron (+ 10.5%) with sales in the quarter under review only slightly exceeded the consensus, but with its sales outlook it was a little more clearly above the forecasts of the analysts. It looked similar on the profit side. The courses of the chip competitors AMD and Intel gained 6.2 and 2.4 percent respectively, Nvidia improved by 4.9 percent.
MC Donalds (+ 1.0%) sells a startup that was bought just three years ago to the credit card company Mastercard (+ 4.1%). As the fast-food chain announced, Dynamic Yield Ltd will grow faster through the takeover. McDonald’s plans to continue working with Dynamic Yield and Mastercard to bring the company’s technology to additional markets.
United Parcel Service (UPS) has Boeing (+ 5.9%) 19 wide-body cargo aircraft ordered. According to the announcement, the machines are to be delivered between 2023 and 2025. The share of UPS quoted 2.3 percent higher.
The media and telecom group AT&T (+ 1.2%) sells its online advertising platform Xandr Microsoft (+ 2.3%) and thus gives up his ambitions to play an important role in digital marketing. Financial details were not disclosed.
The shares of General Mills fell 4.0 percent. The food company reported a weaker than expected profit for the second fiscal quarter. The company cited an “unprecedented combination” of cost increases and disruptions in supply chains.
Oil prices are increasing strongly
With the Oil prices it went up strongly. It was triggered by reports of an interruption in Libyan oil production. Militias have reportedly shut down the El Sharara oil field. The largest oil field in the country could deliver 300,000 barrels of light crude oil per day. But other oil fields are also affected. According to the market strategists of Oanda, the interruption in the run-up to the presidential elections in Libya on December 24th was politically motivated.
the Dollar index yielded 0.1 percent. Oanda expert Jeffrey Halley sees the recent slight dollar weakness as a result of profit-taking after the rally earlier. The downside potential for the greenback is limited, however, because the market remains vulnerable to headlines on the Omikron variant, which could repeatedly drive investors into the dollar as a safe haven.
the Gold price fell slightly but remained near the $ 1,800 mark. Yields continued to rise in the bond market. The return on ten-year stocks gained 4.8 basis points to 1.47 percent. Participants pointed to a slight decrease in worries about omicron.