Wall Street on the up
Quarterly figures encourage investors
10/18/2022, 10:48 p.m
US stock markets continued their recovery on Tuesday, albeit at a slower pace than at the start of the week, supported by some encouraging company numbers. However, given the upcoming rate hikes, experts do not believe that this development will be sustainable.
Positively received quarterly figures from Goldman Sachs reduced US investors’ fears of a recession on Tuesday. Of the Dow Jones gained 1.1 percent to 30,524 points. The tech-heavy one Nasdaq advanced 0.9 percent to 10,772 jobs and the broad S&P 500 increased 1.1 percent to almost 3720 points. The better-than-expected earnings season could be a catalyst to halt the ongoing downtrend, said Art Hogan, chief markets strategist at wealth manager B. Riley Wealth.
However, according to some experts, the improvement in sentiment could be short-lived. “The Fed is still raising interest rates, we’re still in the tightening cycle. If I had to guess, this is more of a short-term bear market rally and we’re going to see more volatility in the coming weeks,” said David Sadkin of the wealth manager Bel Air. “In this context, however, one should also remember the old stock market adage that every bull market arises from a bear market rally and that every rally is initially accompanied by doubts,” wrote Konstantin Oldenburger of broker CMC Markets.
Concerns about falling fuel demand in China due to the weakening economy weighed on oil prices. The US variety STI The oil fell 2.6 percent to $83.23 a barrel after the world’s largest crude oil importer postponed the release of economic indicators scheduled for Tuesday. A new date was not named. “It’s not a good sign when China decides not to release economic numbers,” said John Kilduff, partner at Again Capital. Beijing is stubbornly sticking to its zero-Covid policy, raising questions about the country’s growth, wrote analyst Tina Teng of broker CMC Markets. Reports that the US government would release more crude oil from reserves also put pressure on prices.
Goldman Sachsshares gained 2.3 percent. The slump in profits at the major US bank was not as severe as feared. Also their rivals Bank of America, JPMorgan, Citigroup and Wells Fargo reported better-than-expected net interest income for the quarter in recent days.
the Microsoftshares rose slightly after the company announced it would lay off around 1,000 employees. Amazon rose a good 2.2 percent after workers voted against joining the Amazon Labor Union union.
Just before the close of trading Apple tightened in the eyes of the dealers: According to a media report, the production of the iPhone 14 Plus will be reduced. The shares of the US group initially turned negative, only to then close 0.9 percent more firmly.