End of the week with a profit
Investors are betting on a soft landing for the US economy
November 17, 2023, 10.51pm
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In the United States, the increase in the number of initial unemployment benefit claims is fueling hopes of containing inflation. Wall Street closes with small profits on the final trading day of the week. Companies building or closing factories in Germany are also worth a look.
Wall Street closed the final trading day of the week with small profits. With the Dow Jones up more than 2,500 points from its October low, investors have become more cautious. THE Dow Jones Index he closed with 2 points more at 34,947. For the S&P500 and the Nasdaq composite rose 0.1% each. There were a total of 1,950 (Thursday: 1,086) price winners and 916 (1,761) losers. 64 (89) stocks closed unchanged.
General expectations continue to support the hope that the peak in US interest rates has been reached. This manifested itself in lower-than-expected inflation data during the week. This was further supported by the stronger-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 increased, especially in the short segment, after selling in the early stages of operations. THE Ten-year bond yield it was now trading below the 4.40% mark. At the close of business it showed little change at 4.44%.
Oil prices recovering
“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 Fed to begin cutting rates in less than six months” , according to Crossing. Wall Street.
The dollar temporarily gave up gains and remained in the red. THE Dollar index decreased by 0.5%. Analysts at Danske Bank are betting on the euro in the short term, as they believe it has the potential to reach $1.10 in the next month. They point to recent US data, which has been weaker than expected. In the medium term, over a time horizon of six to twelve months, Danske expects a decline in the euro exchange rate and is based on the relevant business conditions, real growth prospects and the relative development of unit labor costs.
After the previous day’s massive drop of nearly 5% to the lowest levels in four months, oil prices recovered. WTI AND Brent the price increased by about 4%. In reference to yesterday UBS talked about a combination of short selling and short selling via technical brands. However, concerns about demand remain. According to ING, the recovery at the end of the week could be due to speculation that Saudi Arabia will extend production restrictions into the new year due to falling prices.
Investigate applied materials?
When it came to individual stocks, stocks ranged from Applied materials Down 4%, even though the company beat market expectations in its fiscal fourth quarter and the outlook for the current quarter was also better than expected. But according to media reports, the US Department of Justice opened an investigation because the company allegedly supplied systems to a Chinese company without the necessary licenses.
I split The price instead rose by 30.6%. The clothing retailer reported better-than-expected third-quarter results and higher profit margins, citing easing pressure to cut prices. The annual outlook has been confirmed. Eli Lilly increased by 0.5%. The pharmaceutical company is investing $2.5 billion in expanding production capacity in Germany.
Goodyear tires and rubber (-0.1%) is closing two manufacturing plants in Germany to reduce production costs and improve its competitive position in the EMEA region. The factories in Fürstenwalde and Fulda are affected.