Frankfurt Rising energy prices and the upcoming reporting season dampened sentiment on Wall Street at the start of the week. The Dow Jones Index and the broader S&P 500 each lost 0.7 percent. The technology exchange Nasdaq fell 0.6 percent.
“Investors are cautious about the upcoming reporting season,” said Tim Ghriskey, investment strategist at the Inverness Counsel broker in New York. Global supply bottlenecks and rising energy prices may have weighed on some companies’ results in the third quarter.
Analysts assume that the profits of the companies in the S&P 500 are on average almost a third higher than in the third quarter of 2020. But rising inflation and higher energy prices could cloud corporate outlook.
Investors fear that the current inflation is not just a temporary phenomenon, as forecast by the leading monetary authorities, but is leading to stagflation. Economists understand this to be the combination of inflation and a stagnating economy.
Top jobs of the day
Find the best jobs now and
be notified by email.
It is a rare phenomenon and experts say it is difficult for central banks to get out of such a phase. “Investors are now weighing how they should deal with the changed framework conditions,” said chief analyst Jochen Stanzl from brokerage firm CMC Markets. For better or worse, the stock market has to get used to an environment of higher inflation and higher interest rates. Dax and EuroStoxx50 also gave way on Monday.
Oil price rally continues
The price of US WTI oil rose at times by more than three percent to $ 82.18 per barrel (159 liters), its highest level since the end of 2014. The price of Brent rose to a three-year high of $ 84.60 . Experts do not expect the rally to end anytime soon.
“We see a very strong demand for energy in Asia and Europe before the coming cold season. The oil prices will therefore continue to rise in the near future, ”said Jim Ritterbusch, head of the energy consulting firm Ritterbusch and Associates.
Look at individual values
Southwest Airlines: The airline canceled more than 1,800 flights over the weekend due to bad weather, problems with air traffic control and a lack of staff. Southwest rejected speculation that the high number of flight cancellations compared to other airlines was due to protests by employees against a Covid-19 obligation. Southwest falls about 4.2 percent on Wall Street.
JPMorgan: The stocks of the US bank JPMorgan, which made the first premium for the American banks on Wednesday, and Goldman Sachs were among the biggest losers in the Dow Jones index with a loss of around two percent each.
Tesla: Tesla’s titles, on the other hand, rose 0.8 percent. The electric car maker assumes that the first cars from the new plant near Berlin will roll off the assembly line this year, although there is still no official building permit for the factory.
Merck: The US drug maker has announced that it will submit an application for emergency approval for its oral Covid-19 drug. The company published positive study results earlier this month. Merck papers give up their gains and are 0.7 percent lower in the evening.
Apple: The company has asked a judge to postpone changes to its app store. These would allow developers to bypass Apple’s in-app payment system and should go into effect on December 9th. Company shares close little changed.
Starbucks: The shares of the coffee chain will initially rise 1.7 percent. Deutsche Bank has upgraded the share from “hold” to “buy”. In the course of trading, however, the paper gives up the gains again.
Sofi Technologies: The fintech company’s share rises by up to 14 percent. Morgan Stanley previously praised the company for its “strong sales growth story”.
Aptiv: The automotive supplier Aptiv, like many competitors, is meanwhile suffering from the general shortage of semiconductors in the industry. As a result, the company had to revise its sales forecast downwards. The share certificates sagged by around three percent by the end of trading.
Hasbro: Hasbro’s paper was down 1.6 percent. The toy manufacturer’s share certificates apparently suffered from the fact that company boss Brian Goldner is now taking a break for health reasons.
More: Private assets rise to a record high in the corona crisis