Frankfort, New York The US stock exchanges closed on Friday with a drop in prices due to the Ukraine war. Statements by Russian President Vladimir Putin about talks with Ukraine did not buoy markets. Putin had identified “certain positive changes” in talks with Ukrainian officials. US investors were not impressed.
Investors were worried about the economic consequences of the war, which is dampening global growth on the one hand and driving up inflation at the same time. “Central banks currently have less flexibility to cushion shocks on the stock markets, as they have successfully done in recent years,” said UBS expert Haefele. Investors also shied away from larger commitments before the weekend.
The US standard value index Dow Jones went 0.7 percent lower to 32,944 points from trading. The tech-heavy Nasdaq fell 2.2 percent to 12,843 points. The broad S&P 500 lost 1.3 percent to 4204 points.
“I would caution that Putin has said a lot in recent weeks, and most of it was untrustworthy,” said analyst Craig Erlam of trading house Oanda. There is little reason for optimism, even if markets are rising again, and he probably agrees with the majority on this view. Investors are better off waiting for further developments. If, however, the positive signals accumulate, then a recovery could actually begin on the markets.
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Analyst Michael Hewson from broker CMC Markets pointed out that the European stock exchanges had already lost most of their strong price gains in the further course of trading. Putin’s statements lack details. In addition, Russia continues to bomb cities in Ukraine and sends additional military forces towards the country.
The US crude oil grade WTI, on the other hand, rose in price again and increased 3.4 percent to $109.57 per barrel (159 liters). “Looking back, nine of the last 11 US recessions have coincided with rising oil prices,” said portfolio manager Rob Almeida of wealth manager MFS. “Each recession has its own cause, but higher energy prices tend to be very growth-barriers.”
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Meta: Here the impending shutdown of Facebook in Russia weighed on the mood. The public prosecutor’s office there wants to have the parent company Meta classified as an “extremist organization” because of its handling of calls for violence in the Ukraine war. Meta shares then slipped 3.9 percent.
Oracle: When it came to companies, Oracle took the spotlight. Analyst Julie Bhusal Sharma from the research house Morningstar complained that the SAP rival had disappointed in both quarterly sales and profits despite some bright spots such as the cloud business. In addition, she sees few synergies in connection with the $28 billion takeover of IT service provider Cerner. She therefore considers the stock to be overvalued. After a roller coaster ride, Oracle titles were last up 1.5 percent at $77.82.
AT&T: The announced focus on the core business encourages investors to get started. Shares in the telecom group rose 2.2 percent on Wall Street. After separating from its media division, the company plans to invest 48 billion dollars in the expansion of its fiber optic and 5G mobile network by next year.
Wall Street expert Koch: Prospects for US economic growth are clouding over
Rivian: A halved sales forecast sent Rivian into a tailspin. The shares of the electric car maker fell 7.5 percent. According to the company, due to bottlenecks in supplier parts, it will probably only be able to deliver 25,000 vehicles in 2022.
Didi Global: Didi’s shares fell 44 percent and, at $1.89, were the cheapest they had been since the initial listing last year. According to the Bloomberg news agency, the planned IPO of the Chinese travel service provider in Hong Kong is on hold because the Uber rival does not meet the Chinese legal requirements for the protection of user data. Didi was initially unavailable for comment.
Document sign: The electronic signature company reported adjusted quarterly earnings of 48 cents a share, a cent above estimates. Sales were also above expectations. However, shares plunged 25 percent after Docusign issued a weaker-than-expected full-year guidance.
Ultimate Beauty: The cosmetics retailer’s shares lost 0.3 percent. Earnings and sales for the past quarter have turned out better than expected. Ulta Beauty announced a new $2 billion share buyback.
Flash charging: The maker of electric vehicle chargers reported a better-than-expected quarterly loss even as sales beat analysts’ estimates. Blink’s shares fell 6.7 percent.
Zumiez: Shares in the streetwear and action sports apparel maker fell 14 percent. The company’s quarterly figures missed analysts’ estimates. The forecasts for the current quarter also fell short of the estimates.
More: Three ETFs benefiting from the rally in oil, gold and nickel