Pay TV provider crashes
Wall Street takes a breather after the rally
November 6th, 2023, 10:59 p.m
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At the start of the week, investors on Wall Street continue to speculate that interest rate hikes will end. Accordingly, the major indices hardly budge. When it comes to individual values, pay-TV provider Dish Network is plummeting.
After the recent rally, US investors on Wall Street continue to bet on an end to interest rate hikes. The Dow Jones Index the standard values closed 0.1 percent higher in the evening at 34,095 points. The technology-heavy one Nasdaq advanced 0.3 percent to 13,518 points. The broad one S&P 500 gained 0.2 percent to 4365 points.
US investors were eagerly awaiting a series of comments from decision-makers over the course of the week in order to draw further conclusions about the future course of the US Federal Reserve. A cooling U.S. labor market fueled speculation last week that interest rate hikes would end and gave the most important Wall Street indices their best weekly performance in about a year. “The U.S. payroll report was just the ticket for markets – weak enough to suggest the Fed should stop raising interest rates, but not so weak that it would sound alarm bells for the economy,” said Mohit Kumar, chief economist for Europe at Jefferies.
Meanwhile, the run on bonds decreased, in return the yield on the ten-year benchmark government bond rose to up to 4.654 percent from the previous 4.558 percent. Even if the inflation outlook allows interest rates to fall next year, caution is still advised, warned Samy Chaar, chief economist at Lombard Odier. “Ten-year bond yields are likely to ultimately fall to four percent,” said Thierry Wizman, global foreign exchange and interest rate strategist at Macquarie. “We have seen the peak of returns.”
WeWork trading suspended
The individual values drew Tesla shares initially by up to around three percent after the Reuters agency reported on the planned construction of a new entry-level model in Germany. According to information from an insider, the US electric car pioneer is planning to produce an electric car for its factory near Berlin that will cost 25,000 euros. Tesla boss Elon Musk visited the factory last Friday and used this opportunity to inform about the plans. The electric car manufacturer has long been aiming for a low-cost model, but put the plans on hold last year due to unsolvable technical issues. At the end, however, Tesla shares fell 0.3 percent.
Meanwhile, the New York Stock Exchange NYSE suspended the office landlord’s shares WeWork from trade. The reason given was that news could be expected from the company. It was already said last week that WeWork planned to file for bankruptcy in New Jersey this week in order to get its debts under control. The start-up, which was once valued at $47 billion and is backed by Japanese tech investor SoftBank, is now only worth $44 million on the stock market. WeWork has never been in the black.
A surprising quarterly loss Dish Network Meanwhile, the pay-TV provider’s shares plummeted by more than 37 percent. Given fierce competition from streaming services, pay TV subscriptions fell more than expected. In addition, according to company information, company boss Erik Carlson is stepping down as part of a planned merger with satellite operator EchoStar.