Wall Street with good week
US stock exchanges start again for the weekend
06/24/2022, 11:00 p.m
Despite all the skepticism and concerns, the US stock exchanges have had a strong week. The banking sector and flight and tourism providers are among the biggest winners.
With a vigorous recovery, the US stock market ended a good week on Friday after a long dry spell. Market observers currently consider it conceivable that the US Federal Reserve could take its foot off the gas a bit on its rapid rate hike course should the economy slip into recession and inflation cool down a bit.
In principle, however, fears of a recession remain. Some stockbrokers are therefore warning of a bear market rally, i.e. a brief upsurge in a longer downtrend. Of the Dow Jones Industrial hit a two-week high with strong gains. It closed at 31,500.68 points, close to the daily high. The price gain thus amounted to 2.68 percent. For the first time since the end of May there was a weekly increase, with 5.4 percent this was immediately clear. The market breadth S&P 500 increased 3.06 percent to 3911.74 points and the technology-heavy one Nasdaq 100 also recovered significantly by 3.49 percent to 12,105.85 points. It even gained 7.5 percent this week.
Economic signals were mixed on Friday. US consumer sentiment fell to a record low in June. However, the longer-term inflation expectations resulting from the survey have been revised downwards somewhat. This was seen as a vague sign of hope that the USFederal Reserve that inflation could soon be brought under control. There have been voices that further interest rate moves after December will gradually be priced out.
“Whipping boys” take a deep breath
In general, some sectors that had been penalized in June due to economic concerns were able to recover strongly. This drove investors back into Dow papers such as those of the software company Salesforce or the aircraft manufacturer Boeing with increases of 7.4 and 5.6 percent respectively.
The banking sector was also at the forefront of the US industry rating with increases of between 5.2 and 7.6 percent among the best in the industry MorganStanley, Goldman Sachs and Wells Fargo. It helped here that the largest financial institutions in the USA, according to the Fed, have crisis-proof capital resources. All 34 major banks passed the financial regulators’ annual stress test. Travel stocks, which are typically volatile, also rallied, including airlines. The papers from United Airlines led the list of winners among them. The titles of cruise operators such as RoyalCaribbean, which gained 16 percent. Connected with the industry, it went for the accommodation broker Airbnb also significantly high.
Takeover rumor drives Zendesk stock
The logistician FedEx provided individual topics of conversation with a surprisingly good business outlook. This sent shares jumping 6.6 percent to their highest level since February. Even if supply chain problems and higher costs have been troubling the industry recently, the group generated significantly more sales in the most recent quarter. Operating profit also increased. With a price jump of 28 percent, the otherwise provided Zendesk-Share caused a stir. According to sources, the company could be on the verge of a takeover by a group of financial investors led by Hellman & Friedman and Permira.
Of the Euro edged up a bit on Friday last was 1.0553 U.S. dollar paid. The European Central Bank had set the reference rate at 1.0524 (Thursday: 1.0493) dollars. US government bonds suffered losses in the recovered equity environment. The futures contract for ten-year Treasuries (T-Note Future) fell 0.32 percent to 117.28 points. In contrast, the yield on ten-year government bonds rose to 3.13 percent.