No all-clear on inflation
Interest rate expectations weigh on Wall Street
08/05/2022, 11:18 p.m
Market traders are speculating that the Fed will raise interest rates again in the fall. This slows down the New York stock exchanges. The rising wage pressure is also reflected in prices. An Uber rival can surprise.
The prospect of further XXL rate hikes by the Fed is affecting the US stock markets. The US Standard Value Index Dow Jones closed almost unchanged with a small plus of 0.2 percent 32,803.47 points. The tech-heavy one Nasdaq gave up 0.5 percent 12,657.56 points gradually and the broad S&P 500 lost 0.2 percent 4,145.19 points a.
US companies added 528,000 nonfarm payrolls in July, more than twice as many as expected. In addition, hourly wages rose surprisingly sharply by 0.5 percent. “These are killer numbers,” said Dean Smith, chief investment strategist at fund provider FolioBeyond. “People really wanted to give the all-clear on inflation, but we’re not there yet.” Inflation is even increasing. He is therefore counting on a third for September Fed rate hike by 0.75 percentage points in a row.
Against this background, investors threw US government bonds out of their portfolios and drove the yield on ten-year bonds to 2.875 percent. The German counterparts could not escape this trend and also yielded higher at 1.7 percent. The US data gave the dollar an additional boost. The dollar index, which tracks the rate against major currencies, rose 0.8 percent to 106.53 points.
On the US stock market mattered lyft one of the favorites with a price increase of 16.6 percent. The ride-hailing service provider posted adjusted operating profit of $79.1 million in the quarter just ended, roughly four-fold exceeding market expectations. In addition, the Uber rival announced operating income of one billion dollars for 2024. In addition, fears of a loss of market share for Lyft have not come true, wrote analyst Jake Fuller from brokerage house BTIG.
Cinema chains are making losses
The titles of were also in demand DoorDash, which rose by a good one percent over the course of the day. The mother of the food supplier “Wolt” active in Germany made a surprisingly high turnover of 426 million dollars in the past quarter. It then raised its forecast for 2022 order volume to 51-53 from $49-51 billion. The coming year will be more difficult because of the likely growing competition, analyst Ali Mogharabi from the research house Morningstar considered.
It initially went down for the papers of AMC. At times they lost almost twelve percent. The cinema chain made a surprisingly high loss of $0.24 per share. However, sales increased more than expected to 1.16 billion dollars. In parallel, AMC plans to pay its owners a special dividend in the form of preferred stock at a one-for-one ratio. In the slipstream of the rally in other so-called “meme” stocks, AMC stocks turned positive and gained 18.9 percent. By “meme” values, stockbrokers understand companies where small investors encourage each other to buy in relevant Internet forums.
Among other things, this group is particularly popular Beyond Meat, a provider of meat substitute products. Its shares rose by 21.9 percent. The titles of the AMC rival Cinemamark lost 13.4 percent. The company slipped into the red despite a surprisingly sharp increase in sales to $744.1 million. The minus amounted to 0.61 dollars per share.
You can read about how trading went on the Frankfurt floor in our stock market day.