Wall Street closes in the plus: Investors take courage after roller coaster

Wall Street closes in positive territory
Investors take heart again after roller coaster

Good labor market data and hopes that Fed support will last, are giving Wall Street a happy ending. After a day of extreme highs and lows, investors finally grab hold of it again. The Gamestop share is setting new heights on the floor.

Wall Street investors have decided to buy after a rollercoaster ride. Good data had opposite effects over the course of the day. On the one hand, they fueled concerns that the US Federal Reserve might cut back on its supportive monetary policy. On the other hand, they were welcomed as a sign of recovery, especially since the Fed had recently emphasized its continued support despite the economic recovery. This tendency prevailed in late business. The weekly labor market data were clearly better than forecast. In the third reading, US GDP was revised upwards for the fourth quarter – it was also better than expected. At the same time, the data showed the high level of inflation, with no surprises.

Of the Dow Jones Index gained 0.6 percent to 32,620, the S&P 500 rose by 0.5 percent. Of the Nasdaq Composite increased by 0.12 percent. At the daily low, the index gave up all of the gains it had made since the beginning of the year; from its high in mid-February (14,175 points) it had lost over 1,300 points. On the New York Stock Exchange, 2,155 (Wednesday: 1,544) price winners were counted, compared to 1,140 (1,764) losers. 88 (88) titles closed unchanged.

Since representatives of the US Federal Reserve had recently repeatedly referred to the development of the labor market as a target for monetary policy, investors now feared that the Fed’s drive to support the economy would weaken. Fed chief Jerome Powell said his house would cut back on bond purchases – but not until the economy has almost completely recovered. In the bond market, yields on ten-year US Treasuries turned positive again after early losses, by 1 basis point to 1.63 percent.

China criticism weighs on Nike

Nike 128.64

The individual values ​​fell Nike by 3.4 percent. In China there is a state media campaign against the Swedish fashion company HM because he had previously made allegations of forced labor in Xinjiang Province in connection with the Uyghur minority. The US sporting goods manufacturer had made a similar statement.

The upscale home furnishings company’s share price RH rose 9.1 percent. Both sales and net income were above market expectations. The outlook for the first quarter was also convincing. KB Home (+2.3 percent) exceeded expectations in terms of net income in the first quarter of the financial year, but the construction company, which specializes in private homes, fell short of market forecasts in terms of sales. Rite Aid collapsed by 20.4 percent. The pharmacy and drugstore chain has lowered its outlook for the 2021 financial year.

HB Fuller advanced 4.6 percent after the adhesives maker beat sales and net profit expectations in the first fiscal quarter. Evofem Biosciences fell nearly 25 percent after the company announced it would issue $ 30 million in new shares.

Gamestop shoots up again

GameStop Corporation
GameStop Corporation 130.20

The Gamestop share lived up to its image as a highly volatile investment. After it had dropped 34 percent the day before in the wake of quarterly figures, it jumped 53 percent. The share has achieved cult status because small investors agreed in large numbers in January via the subreddit WallStreetBets of the Internet forum Reddit about collective purchases. Also the Koss share is the subject of such speculative agreements. On Thursday it rose 57 percent.

Oil prices fell significantly after their soaring the previous day. The blockade of the Suez Canal is unlikely to have a major impact on the oil supply, it said. In addition, the participants looked again at the shutdown of the economy in many countries, which will reduce demand. The gold price, initially driven by concerns about inflation, slipped into the red with the firm dollar and the renewed willingness to take risks.

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