Monday 22 November 2021
Profits melt away
Powell Appointment Pushes Tech Values
The prospect of continuity at the top of the US Federal Reserve is initially driving the US stock markets, but the trend does not last until the end. However, the dollar is getting a boost and yields are picking up sharply. When it comes to individual values, a space company, among other things, is going through the roof.
Wall Street was again inconsistent at the start of Thanksgiving week. Fed Chairman Jerome Powell is given a second term. Initially, the participants in the stock market welcomed the appointment, but the indices plummeted in later business. The downside was led by technology stocks on the Nasdaq.
According to the White House, US President Joe Biden will nominate Powell and thus ensure continuity in monetary policy. This initially calmed down. Fed Governor Lael Brainard, who had been favored by the Democrats, is supposed to become vice chairman of the Fed board. Brainard is considered a monetary dove.
Of the Dow Jones Index noted 17 points stronger at 35,619 points. Of the S&P 500 fell 0.3 percent and the Nasdaq Composite by 1.3 percent. According to initial information, there were 1,602 (Friday: 1,151) price winners, 1,788 (2,219) losers and 132 (128) unchanged shares on the Nyse.
Yields are increasing massively – gold under pressure
Of the dollar moved on with the personnel because Powell is considered less deaf than Brainard. The DXY dollar index gained 0.5 percent. Accordingly, the yields on the US bond market rose massively, the Ten year return shot up nearly 8 basis points. Most recently, they had been under pressure in some countries due to the new corona restrictions. Of the Gold price sagged 2.2 percent with the Powell appointment, the largest daily decline in over three months. Even Bitcoin came under pressure. Technology stocks suffered from rising yields and underperformed the market as a whole.
Some stress also came from the new corona restrictions in parts of the world. Observers pointed out, however, that the measures do not come as a surprise and that one is already used to it. The restrictions due to vaccination advances are also unlikely to last as long as they did before.
On the economic side, it rose Chicago Fed National Activity Index for October to 0.76 from minus 0.18 in the previous month. According to the Factset, economists had forecast 0.17 by consensus. Of the Oil price put on easily. It has been speculated that OPEC might rethink expanding its production.
Vonage and Astra Space with course jumps
Bank stocks benefited from rising returns. Goldman Sachs prices rose by 2.3 percent and JP Morgan by 2.1 percent. Tesla rose 1.7 percent after CEO Elon Musk announced on Twitter that the Model S plaid could hit the Chinese market “around March”. Activision Blizzard were down 0.3 percent. CEO Bobby Kotick has told senior executives that he is considering leaving the company if he cannot quickly fix the cultural issues at the video game giant, according to Kreise.
The share of Vonage Holdings made a price jump of around 27 percent upwards. Ericsson plans to take over the provider of global cloud communications for companies for around 6.2 billion US dollars. The share of Astra Space shot up 17 percent. The space transportation company has successfully completed its first commercial orbital launch for the US Space Force.