Friday May 14th 2021
Walt Disney under pressure
Dow Jones gains at the end of the week
The major US stock indices ended a turbulent week with a clear daily gain. Once again, members of the US Federal Reserve reassure investors with statements that the price increases triggered by the economic upswing are only temporary.
On Wall Street, investors have used the recent price losses to re-enter. The leading US index closed 1.1 percent higher to 34,382.13 points. The technology-heavy Nasdaq advanced 2.3 percent to 13,429.98 points. The broad S&P 500 gained 1.5 percent to 4,173.85 jobs.
The main topics of conversation on the stock market remained price pressure and the outlook for US key interest rates. “Either the rise in inflation is temporary or the Fed is dangerously complacent,” said Societe Generale investment strategist Kit Juckes. The coming months would show whether and how the US Federal Reserve (Fed) would react to the increased inflation rates.
So far, the Fed has stuck to its mantra that prices will only rise for a short time and that monetary policy will remain loose for the foreseeable future. Mixed US economic data appeared to support this stance. US retail sales stagnated surprisingly in April. However, the growth was corrected up to 10.7 from 9.8 percent in March, said investment strategist Tobias Basse from NordLB. That put the current numbers into perspective.
At the same time, consumer sentiment deteriorated unexpectedly. Private consumption is considered to be the mainstay of the world’s largest economy. “We are in a situation where bad news is good news,” said Naeem Aslam, chief market analyst at brokerage firm Avatrade. Because they reduced the pressure on the Fed to tighten the monetary policy reins.
On the stock market, Walt Disney stocks fell against the trend by 2.6 percent. Neil Wilson, chief analyst of the online broker Markets.com, said the below-expected customer growth of the streaming service Disney + disappointed in the published quarterly results of the entertainment group. “Last year this division was the big plus because of the closed amusement parks and canceled cruises.”
You can read about trading on the Frankfurt floor in our “Stock Exchange Tag”.
Airbnb’s stocks rose four percent thanks to a recovery in business. Bookings and earning power are above market expectations, praised analyst Brent Thill of the Jefferies investment bank. The accommodation broker offers the best growth opportunities in the tourism sector. Also in demand were semiconductor stocks such as AMD, Intel, NVidia, Micron and Texas Instruments, whose shares rose by up to 4.2 percent. According to insiders, some US senators want to launch a $ 52 billion package to promote research and the production of computer chips in the US.