Thursday, August 11, 2022

Markets USA / Barely Revenge – Weak data dampens interest rate fears

NEW YORK (DOW JONES) – After a rally in prices on Wednesday, US stock markets rebounded on Thursday. While unexpectedly weak economic data is fueling economic concerns, they are raising hopes that the US Federal Reserve may slow the pace of interest rate hikes.

The Dow Jones Index hardly changed immediately after the opening bell. The S&P 500 is also hovering around Wednesday’s close. The Nasdaq Composite is down 0.2 percent.

The previous day’s gains were triggered by relief that the US Federal Reserve raised interest rates by 100 basis points instead of the widely expected 75. Fed Chairman Jerome Powell’s statements during the subsequent press conference were interpreted as dovish. Meanwhile, however, disappointing business data and pessimistic outlook of major companies have made it clear to investors that the prospects of the domestic economy are not at all good.

Under the day’s economic data, GDP declined 0.9 percent in the first quarter, while economists had forecast a 0.3 percent increase. The US economy has thus slipped into a technical recession after a fall in GDP in the first quarter. Initial jobless claims numbers fell less sharply than last week, and the week’s earlier value was revised upwards.

quarterly report with light and shadow

The list of companies that have submitted their quarterly reports is very long. Of these, Honeywell (+2.4%) reported a drop in profits, but still turned around and earned more than expected. Merck & Company (-2.3%) and Pfizer (-3.4%) also exceeded expectations. Pfizer also achieved record sales. However, there are fears that drugmakers’ profits could be squeezed if Medicare is allowed to negotiate drug prices with drug makers.

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Mastercard (+1.2%) reported a significant increase in sales and profits. The credit card company reported that high inflation has not slowed consumer spending so far.

Facebook parent meta (-7.3%) reported declining sales for the first time; Profits have dropped significantly. The view was also disappointing.

Qualcomm (-3.8%) also gave a relatively cautious outlook, but surprisingly saw a significant increase in its profit in the last quarter.

Ford (+4.7%) reported stronger-than-expected sales and profit growth.

After the closure of the market, the figures of giants like Amazon, Apple and Intel have come out.

A political decision helps solar industry stocks jump in price. Senator Joe Manchin of the Conservative wing of the Democrats has now approved the US government’s $369 billion climate protection package. Sunnova Energy jumped up to 32 percent, also supported by good company numbers. First Solar is up 19 percent and SunPower is up 17 percent.

Dollar recovers – ING looks likely to rise

The dollar is recovering to some extent from the fall in the dollar after the US Federal Reserve’s interest rate decision. Analysts at ING believe the dollar is gaining momentum, albeit with higher volatility, as it is now more sensitive to economic data. Global economic weakness and geopolitical risks are likely to support the dollar as a safe haven in times of crisis.

The bond market, also considered a safe haven, is experiencing vibrant growth, which is reflected in falling yields. The price of gold is also increasing.

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The price of oil continues to rise sharply. They are again benefiting from the fall in US oil stocks reported on Wednesday.

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Index Final +/-% Absolute +/-% YTD

DJIA 32.209,94 +0,0% 12,35 -11,4%

S&P-500 4,024.53 +0.0% 0.92 -15.6%

Nasdaq-Comp. 12.08,61 -0,2% -23,81 -23,2%

Nasdaq-100 12,540.43 -0.5% -61.04 -23.2%

US bonds

Term Yield Bp to VT Yield VT +/-Bp YTD

2 years 2.88 -14.5 3.02 214.5

5 years 2.69 -15.5 2.84 143.0

7 years 2.70 -13.8 2.84 126.4

10 years 2.67 -11.7 2.79 116.1

30 Years 2.99 -7.6 3.07 109.2

Forex Last +/-% Thu, 8:51h Wed, 17:25% YTD

EUR/USD 1,061 -0,4% 1,0209 1,026 -10,6%

EUR/JPY 136.66 -1.9% 138.35 138.32 +4.4%

EUR/CHF 0.9718 -0.7% 0.9796 0.9753 -6.3%

EUR/GBP 0,8364 -0,3% 0,8394 0,8421 -0,5%

USD/JPY 134,50 -1,5% 135,51 136,60 +16,8%

GBP/USD 1,2146 -0,1% 1,2164 1,2024 -10,2%

USD/CNH (Offshore) 6,7450 +0,0% 6,7438 6,7691 +6,1%

Bitcoin

BTC/USD 23.096,38 +1,6% 23.151,18 20.837,45 -50,0%

Rohoel final VT-settled. +/-% +/- USD% YTD

WTI/Nymex 98,68 97,26 +1,5% 1,42 +37,9%

Brent/ICE 108,07 106,62 +1,4% 1,45 +44,3%

Gas VT off +/- Euro

Dutch TTF 204,00 205,00 -0,6% -1,23 +240,2%

Metals Last Day +/- % +/- USD% YTD . before

Sleep (spot) 1.753,44 1.734,14 +1,1% +19,30 -4,2%

Silver (Spot) 19.80 19.18 +3.3% +0.63 -15.0%

Platinum (Spot) 892.88 890.10 +0.3% +2.78 -8.0%

Kupfer-future 3,49 3,43 +1,7% +0,06 -21,4%

YTD at the end of the day

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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