The momentum from the previous week is gone
US investors are cautiously moving forward
November 13, 2023, 11:18 p.m
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Shortly before the publication of the US inflation data, investors on Wall Street are holding back with clear positioning, the US stock markets are closing without a clear direction. When it comes to individual values, Boeing is going up significantly.
After the recent rally, investors on Wall Street were cautious at the start of the week. The Dow Jones index of standard stocks closed 0.2 percent higher at 34,337 points. The technology-heavy one Nasdaq However, it fell 0.2 percent to 13,767 points. The broad one S&P 500 lost 0.1 percent to 4411 points. The most important US indices had recovered significantly this month. The recent drivers were better-than-expected company balance sheets and speculation that interest rates would not rise any further.
Investors were now eagerly awaiting the US inflation data for October in order to draw conclusions about the US Federal Reserve’s further interest rate path. “If the numbers continue to decline year-over-year, then that seals the fact that the Fed will not hike in December and is most likely done with the hike campaign,” said Peter Cardillo, chief economist at Spartan Capital Securities. Consumer prices are expected to have risen 3.3 percent in October, after 3.7 percent in September. Experts assume that without the volatile energy and food prices, the core rate is likely to remain at a level that is still too high for the Fed’s inflation target.
The rating agency Moody’s, which on Friday lowered the rating outlook for the USA to “negative” from “stable” previously, also contributed to the general uncertainty. This means that the country is at risk of a downgrade in the near future and, as a result, more expensive loans. The rating agencies Fitch and S&P have already withdrawn the USA’s triple A rating.
Meanwhile, on the crude oil market, a report from OPEC initially dispelled investors’ concerns about weakening demand in the USA and China. “OPEC’s monthly oil market report appeared to push back against demand concerns, pointing to excessively negative sentiment on Chinese demand,” said Craig Erlam, market analyst at Oanda. At the same time, OPEC slightly increased its forecast for growth in global oil demand in 2023 and maintained its relatively high forecast for 2024. The prices for the grade Brent from the North Sea and US oil WTI As a result, prices rose by around 1.5 percent to $82.73 and $78.46 per barrel, respectively. zero
In terms of individual stocks, there was a major order from Dubai worth $50 billion Boeing shares by more than four percent. The state airline Emirates and its sister company flyDubai ordered 125 wide-body aircraft from its Airbus rival at the opening of the Dubai Airshow. A report from the Bloomberg agency also provided tailwind, according to which China was considering resuming orders for Boeing 737 Max aircraft. This would have a positive impact on Boeing’s earnings over the next six to 18 months, said Thomas Hayes of hedge fund Great Hill Capital.
In contrast, the ride-hailing company Lyft fell by almost five percent. Investors were upset that Google parent company Alphabet divested itself of its stake in the Uber rival.