Friday 17th December 2021
Tech sector is stabilizing
Dow ends Fed week in the red
At the weekend, Wall Street is divided into two parts. While tech stocks are stabilizing, cyclical stocks are taking a hard hit.
Wall Street gives way, burdened by price losses in cyclical stocks. The US standard value index Dow Jones lost 1.5 percent to 35,365 points on Friday. The broad S&P 500 caught the eye 4,620 points, which means a minus of one percent. The technology-heavy Nasdaq was only slightly in the red at 15,169 points.
At the end of the last full trading week of the year, institutional investors were doing balance sheet cosmetics, said Peter Cardillo, chief economist at Spartan’s financial advisor. Some parted ways with holdings for tax reasons. “The mood at the turn of the year is good, but everything depends on the economic outlook. The US Federal Reserve expects the world’s largest economy to grow robustly in 2022 and therefore plans to raise interest rates three times in the coming months.
The decline in the Turkish currency, which has lost more than half of its value since the beginning of the year, also continued unabated. the dollar marked 16.47 lira a record high for the third day in a row. President Recep Tayyip Erdogan will apparently not be dissuaded from his course of keeping interest rates low despite high inflation, said financial expert Patrick Curran from research house Tellimer. This threatens to worsen the currency crisis to a point where there is no going back. “As long as Erdogan is in charge, nothing will stop the devaluation of the lira.”
FedEx is more optimistic about the future. The parcel delivery company is returning to its original business goals, although staff shortages and the resulting additional costs have reduced margins. The earning power is still slightly above expectations, praised analyst Matthew Young from the research company Morningstar. The growth was even 14 percent above his forecasts. FedEx stocks then rose by up to 5.2 percent, as strong as last year and a half. The rival UPS gained 0.6 percent.
Also in demand were the papers of AMC, which increased in price by almost 20 percent. According to the company, over a million visitors flocked to its US theaters to see the new film “Spider-Man: No Way Home”. This is the biggest rush since the beginning of 2021. Only “Avengers: Endgame” earned more money on the day of the cinema premiere. AMC also operates numerous movie theaters in Germany. The shares of Oracle on the other hand fell by almost 6.3 percent.
According to the “Wall Street Journal”, the SAP rival wants to buy the IT service provider Cerner for 30 billion dollars. Compared to other acquisitions in the sector, the price is more than fair, said analyst Charles Rhyee of asset manager Cowen. It also makes strategic sense. CernerTitles rose at times by 13 percent.