Continue on the recovery course
Tech balance sheets give Wall Street a boost
2/2/2022 11:42 p.m
Earnings season is in full swing and this is creating momentum on Wall Street. Investors are particularly interested in papers from Google’s mother Alphabet, and chip manufacturers are also in high demand. Paypal, on the other hand, crashes.
Strong quarterly results from Google’s parent company Alphabet and the chip company AMD put US investors in a buying mood. Disappointing economic data on Wednesday did not change that, and Wall Street posted gains for the fourth straight trading day. So he closed Dow Jones Index the standard values 0.6 percent higher to 35,629 points. The tech-heavy one Nasdaq advanced 0.5 percent to 14,417 points, and the broad S&P 500 increased by 0.9 percent to 4589 jobs. In Frankfurt it closed dax practically unchanged at 15,613 points, the EuroStoxx50 closed 0.1 percent higher at 4228 points.
A jump in sales and profit helped alphabet to a price increase of 7.5 percent to 2960 dollars. The quarterly result was above his expectations, praised analyst John Blackledge from asset manager Cowen. Both the advertising revenue and the cloud business were a positive surprise. He therefore reiterates his “Outperform” rating. A planned stock split should also make Alphabet more attractive to retail investors, said Neil Wilson, chief analyst at online brokerage Markets.com.
Alphabet’s results, along with equally convincing numbers from Apple and Microsoft, underscored investors’ optimistic view of the big tech companies’ business prospects, Wilson said. AMD also caused beaming faces among investors, the price rose by 5.1 percent. The chip manufacturer is aiming for a surprisingly high turnover of 21.5 billion dollars for 2022. Thanks to more competitive products, AMD will take further market share from arch-rival Intel, which is struggling with manufacturing problems, predicted analyst Abhinav Davuluri from research house Morningstar. intelstocks up 1.1 percent. The shares of other chip companies like Nvidia, Qualcomm and microns grew even more clearly in the slipstream of the AMD rally and recorded growth of between two and a good six percent
On the other hand, it went steeply down for PayPal. The disappointing quarterly result raises questions about the short-term business prospects, criticized analyst Mark Palmer from brokerage house BTIG. In addition, the targets for 2022 fell well short of expectations. He therefore downgrades the titles to “Neutral” from “Buy”. Paypal papers then fell by almost 25 percent.
the oil prices went up and down. Shortly after the US stock market closed, the Brent variety from the North Sea was traded 0.2 percent more expensive at $89.35 per barrel (159 liters). US oil WTI was down 0.2 percent at $88.04 after the price had previously fallen further.