Earnings weekend: Investors bet on a soft landing for the US economy

Weekend with profits
Investors bet on a soft landing for the US economy

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In the US, the rise in the number of initial jobless claims is fueling hopes of curbing inflation. Wall Street closes with small gains on the last trading day of the week. It is also worth taking a look at the companies building or closing plants in Germany.

Wall Street closed the last trading day of the week with small gains. With the Dow Jones up more than 2,500 points from its October low, investors became more cautious. He Dow Jones Index closed 2 points higher at 34,947. For him S&P 500 and the Nasdaq Composite rose 0.1 percent each. There were a total of 1,950 (Thursday: 1,086) prize winners and 916 (1,761) losers. 64 (89) shares closed unchanged.

Broad expectations continued to support hopes that peak interest rates have been reached in the US. This manifested itself in lower than expected inflation data throughout the week. This was further supported by the larger-than-expected increase in weekly initial jobless claims the previous day.

Investors are also betting on a “soft” landing for the US economy. However, yields in the US bond market rose, especially in the short term, after selling in early trade. He Ten-year securities performance was now trading below the 4.40 percent mark. At the end of the business it showed little change at 4.44 percent.

Oil prices with recovery

“The main reason for the recent rally is that Wall Street is confident that the Federal Reserve will not raise interest rates again this cycle. In fact, investors now expect the Federal Reserve to begin cutting rates in less than six months” , according to Crossing. Financial world.

S&P 500
S&P 500 4,510.21

The dollar gave up temporary gains and was in the red. He dollar index decreased 0.5 percent. Danske Bank analysts bet on the euro in the short term; They believe it has the potential to reach $1.10 over the next month. They point to recent US data, which was weaker than expected. Danske expects that in the medium term, over a time horizon of six to twelve months, the euro exchange rate will decline and bases this on relative business conditions, real growth prospects and the relative development of unit labor costs.

After the previous day’s massive declines of nearly 5 percent to their lowest levels in four months, oil prices recovered. WTI and Brent rose in price about 4 percent. Compared to the day before, UBS spoke of a combination of short selling and falling technical brands. However, there are still concerns about demand. The late-week rally could be due to speculation that Saudi Arabia will extend production curbs into the new year due to falling prices, according to ING.

Investigating applied materials?

As far as individual stocks are concerned, stocks went from Applied materials down 4 percent, even though the company beat market expectations in the fiscal fourth quarter and the outlook for the current quarter also beat expectations. But according to media reports, the US Department of Justice has opened an investigation because the company allegedly supplied systems to a Chinese company without the necessary licenses.

Gap On the other hand, the price rose by 30.6 percent. The clothing retailer reported better-than-expected third-quarter results and higher profit margins, citing less pressure to reduce prices. The annual outlook was confirmed. Eli Lilly increased 0.5 percent. The pharmaceutical company invests $2.5 billion to expand production capacity in Germany.

Goodyear tires and rubber (-0.1%) closes two production plants in Germany to reduce production costs and improve its competitive position in the EMEA region. The Fürstenwalde and Fulda plants are affected.

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