The “Fearless Girl” on New York’s Wall Street
(Photo: AP)
new York One day before the start of the accounting season, the US stock exchanges closed with price discounts. After a day-long rally, profit-taking set in in late Thursday trading. The US standard value index Dow Jones went 0.5 percent lower to 36,113 points from trading. The tech-heavy Nasdaq fell 2.5 percent to 14,806 points. The broad S&P 500 lost 1.4 percent to 4659 points.
Investors were hoping for fresh buying impulses on the stock market from the US accounting season. On Friday, the big banks Citigroup, JPMorgan and Wells Fargo open the number round. In the previous quarterly results, the financial institutions had made extensive provisions for possible defaults by their borrowers, said Fall Ainina, senior analyst at wealth manager James Investment. “But now the situation has improved significantly.”
The big technology companies such as Amazon, Apple, Facebook, Netflix and the Google parent Alphabet went down. They lost up to 2.4 percent. According to experts, higher interest rates will devalue the future profits of these high-growth companies.
US economic data from the USA showed light and shadow on Thursday. Producer prices rose less than expected in December. The number of weekly initial jobless claims, on the other hand, rose while analysts had expected a decline on average.
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Among the winners in the US stock market was Delta Air Lines, up 2.1 percent. Thanks to strong holiday sales, the airline made earnings of $0.22 per share in the past quarter, almost twice as much as expected. Hopes for the current quarter are pinned on March as January appears to be difficult due to winter weather and the omicron variant of the coronavirus, wrote analyst Helane Becker of asset manager Cowen. There are first signs that sick leave from staff has peaked. In the slipstream of Delta, the titles of rivals American Airlines and United gained up to 4.5 percent.
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The US carmaker Ford exceeded a market value of 100 billion dollars in trading for the first time in its history. The car manufacturer’s shares, which roughly doubled in the past year, closed 2.2 percent higher. Stockbrokers justified the surcharges with the electric car optimism. Ford plans to triple production of its Mustang Mach-E model to 200,000 units per year by 2023. In total, the carmaker wants to sell 600,000 electric models a year by then. Ford is now worth more than its rival General Motors, which has a market cap of $88.61 billion. The electric car maker Tesla even reaches a market value of more than one trillion dollars.
Look at other individual values
Big 5 sporting goods: A surprisingly strong Christmas business encourages investors to get started. The shares of the sporting goods retailer are heading for the largest daily gain in two months with a plus of nine percent. According to preliminary figures, the company made earnings in the fourth quarter of 0.84 to 0.86 instead of the previously targeted 0.55 to 0.70 dollars per share.
Boeing: Boeing continued its recent uptrend at the top of the Dow with a plus of three percent. According to insiders, the 737 Max aircraft is about to return to the Chinese market.
Virgin Orbit: Later today, Virgin will launch its first commercial satellite since the IPO. The company’s stock was up 3.4 percent but was down 5.8 percent on Wednesday.
KB Home: The house builder reported quarterly earnings of $1.91 per share, up 14 cents above estimates, even though revenue was slightly below analysts’ forecasts. KB Home gave a positive outlook for 2022. The stock climbed 13.4 percent.
Sunrun: The solar equipment maker’s stock rose 2.2 percent after being named a top 2022 stock pick by Morgan Stanley.
Match Group/Bumble: US bank Goldman Sachs upgraded the shares of both dating services from “neutral” to “buy”. Both companies would benefit from “structural tailwinds” in the coming years. Match stock climbed 2.9 percent and Bumble gained 5.7 percent.
TPG: Shares in private equity firm TPG started their first trading day at $33, above the $29.50 issue price. They went on sale at $34. The IPO had a total volume of one billion dollars.
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