Investors are using the latest price setbacks to re-enter.
(Photo: dpa)
Frankfurt, New York Encouraging statements from the US Federal Reserve and optimistic outlooks from companies encourage investors to enter the US stock market. The leading indices Dow Jones, Nasdaq and S&P 500 rose by around one percent each when they opened on Thursday.
As expected, Fed Chairman Jerome Powell reaffirmed his commitment to curbing securities purchases on Wednesday evening and named November as a possible start date. In addition, the forecasts of the central bank management signaled an initial rate hike for the end of 2022 instead of the beginning of 2023.
>> Read here the report for Fed decision.
Investors apparently viewed these statements as a vote of confidence that the economic recovery was on the right track, said Mike Loewengart, chief investment strategist at brokerage firm E * Trade. Monetary policy is still relaxed and, given the robust economy, a return to normality is sensible.
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Darden restaurants: Parent company Olive Garden reports earnings of $ 1.76 per share, up from its forecast of $ 1.64 per share. The restaurant company is also seeing sales in the same store grow 47.5 percent, beating estimates. The share gained 8.6 percent.
Biogen: The drugmaker’s stock rose 2.8 percent at the stock market launch after Needham initiated coverage of the stock with a buy rating.
Blackberry: The software company reported quarterly results that were better than expected. Although the group made a loss, according to Refinitiv, at six cents per share, it was lower than the expected loss of seven cents. Revenue was $ 175 million, also beating the $ 164 million estimate. The shares rose 10.5 percent.
Salesforce: With a price increase of 4.4 percent, Salesforce was one of the winners on Wall Street. The SAP rival raised its sales targets for the current fiscal year. For the coming year, the software house is aiming for higher revenues than previously expected by the market.
Joby Aviation: Morgan Stanley began reporting on the air taxi start-up with an overweight rating and said in a statement to clients on Thursday that investors should take a look at the stock, which analysts believe has great upside. Joby Aviation’s shares rose 9.4 percent in trading.
More: US Federal Reserve cuts growth forecast for this year