Disappointing forecasts weigh on Wall Street – Aeroclean shares rise more than 900 percent on stock market debut

Trader on the New York Stock Exchange

View of the trading floor of the New York Stock Exchange.

(Photo: dpa)

Frankfurt, New York On Wall Street, the Dow Jones barely moved on Wednesday. The US benchmark index stagnated at 35,804.38 points. The tech-heavy Nasdaq advanced 0.4 percent to 15,845.23 points and the broad S&P 500 gained 0.2 percent to 4,701.46 points. Wall Street is troubled by cloudy outlooks from US retailers.

“The problem is, everyone is expecting a very strong and robust Christmas shopping season,” said analyst Ken Mahoney, head of wealth manager Mahoney. “Anything that falls behind will be a disappointment.”

Investors hit the mood, among other things, the lowered sales and profit targets of Gap. The fashion company suffers from delivery bottlenecks. The problems are temporary, wrote analyst David Swartz from the research house Morningstar. Gap stocks fell more than 24 percent.

Nordstrom’s paper suffered the largest daily loss in the company’s history with a minus of almost 30 percent. The fashion retailer also warned of supply difficulties. In addition, the profit in the past quarter was 64 million dollars below expectations. Since the goals for the year as a whole remain unchanged, he expects a positive Christmas business, commented Morningstar expert Swartz. In his opinion, the share is undervalued.

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Things went better at Guess. The fashion company known for its jeans is sitting on bulging warehouses and raising its business goals. In addition, the surprisingly strong results of the past quarter fueled confidence in the growth prospects, wrote analyst Janine Stichter of the investment bank Jefferies. The sustained increase in market shares in Europe is also positive. Guess shares rose more than eleven percent.

The titles from Dell and HP, which rose by almost five and more than ten percent respectively, were also in demand. Despite delivery bottlenecks for some components, both Dell and HP presented quarterly results above expectations, praised analyst Krish Sankar from the asset manager Cowen. The further prospects are also good.

Aeroclean made a strong debut on the stock market

When Aeroclean went public, investors scrambled for shares in the provider of mobile air filter systems. They go up to $ 101.87 on Wall Street. That is an increase of more than 900 percent. The company had issued 2.5 million shares of ten dollars each in the course of the issue. According to its own information, it is working on the approval of the US health authority FDA for its products, which clean the air of pathogens such as the coronavirus.

US stock market expert Koch: “Wall Street experiences a price thunderstorm before Thanksgiving”

The US economic data, however, left investors a little perplexed, said Naeem Aslam, chief market analyst at the brokerage house AvaTrade. On the one hand, the surprising decline in incoming orders for durable goods speaks against a more rapid tightening of monetary policy by the Fed. On the other hand, the decline in initial US jobless claims to their lowest level since 1969 signals robust growth and interest rate hikes in the coming year.

At its latest monetary policy meeting, the US Federal Reserve discussed a faster way to raise interest rates. Several participants argued that the Fed should be prepared for a faster pace in reducing its bond purchases. This increased pace could be appropriate in order to be able to initiate a rate hike earlier if necessary. As the minutes of the meeting published on Wednesday also showed, several monetary authorities called for flexibility as a guideline for monetary policy in an environment marked by uncertainty and increased inflation.

In commodities, crude oil largely defended its recent gains, despite the US trying to halt the price hike by releasing strategic reserves. “The additional supply of 50 million barrels corresponds to just half of the estimated daily demand for crude oil worldwide,” said Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank. “It should definitely not be enough to replenish the economy’s relatively low inventories.” The US variety WTI was quoted 0.3 percent lower at 78.29 dollars per barrel (159 liters).

US investor Cathie Wood used the 14.7 percent loss in Zoom shares on Tuesday to buy almost 650,000 shares with her Ark fund. Her value on a closing price basis: $ 133 million. The papers of the video conferencing provider rose by one percent on Wednesday,

Further individual values ​​in focus

Deere: The US tractor manufacturer recorded increasing demand for its agricultural machinery in the third quarter thanks to higher harvest and livestock prices. In the current year, the prices of corn and soybeans rose, which increased the demand for tractors and combines. Deere stock rose nearly six percent.

VMware: The software company beat forecasts by 18 cents with adjusted quarterly earnings of $ 1.72 per share. In addition, VMware also issued an optimistic forecast for the current quarter, as global demand for cloud computing services increases. The share gains about two percent.

Jack In The Box: The share of the restaurant chain was downgraded from “Buy” to “Hold” by the analysis company Stifel Financial. A number of factors such as poor comparable restaurant sales served as the reason for this. Jack-In-The-Box stock is down 3.8 percent.

More: Big-short investor Mike Burry expects a stock crash – he still holds these six stocks

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