The “Fearless Girl” on New York’s Wall Street.
(Photo: AP)
new York Wall Street rose again, led by technology stocks. The Dow Jones of Standard Values closed 0.9 percent higher on Wednesday at 35,768 points. The tech-heavy Nasdaq advanced 2.1 percent to 14,490 points. The broad S&P 500 gained 1.5 percent to 4587 points.
Investors see the price losses at the beginning of the year as an opportunity to enter the high-growth tech industry, said portfolio manager Paul Nolte from asset manager Kingsview. “We will probably not know for sure until Friday whether this is just a technical backlash or whether January was more of a blip and we will see a continuation of the rally over the course of the first quarter.” In January, the S&P 500 temporarily lost twelve percent.
The US inflation data, which is due for publication on Thursday, will be decisive for investor sentiment. Experts expect the inflation rate to rise to 7.3 percent in January.
The core rate, excluding the sharply fluctuating food and energy prices, is said to have risen to 5.9 percent. “The numbers will help to estimate whether the Federal Reserve will start with a rate hike of a quarter or half a percentage point in March,” predicted the analysts at ING Bank.
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The shares of the Facebook parent Meta led the technology exchange up on Wednesday with a price premium of 5.4 percent. However, it had previously lost around a third of its value in just four trading days. The trigger was that Meta had shocked investors used to success last week with falling user numbers.
In addition to technology stocks, Chipotle stocks were also in demand. They gained a good ten percent after the restaurant chain, which is also active in Germany, reported a surprisingly high quarterly profit of $5.58 per share. This is the biggest price jump in more than half a year. The company has created a unique niche for itself in the industry and can poach customers from traditional quick service restaurants as well as upscale chains, praised analyst Sean Dunlop of research house Morningstar.
US stock market expert Koch: “Wall Street impresses with resilience”
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Tesla: The electric car pioneer has to recall vehicles again because of software problems. Almost 27,000 cars are being ordered into the workshops in the USA because a software error can lead to problems with defrosting the windshield, as announced by the National Highway Traffic Safety Administration (NHTSA). Tesla said it would update and fix the problem. At the beginning of February, Tesla recalled 817,000 cars in the United States because of software errors in seat belts. The share price is not deterred by such reports and rose by more than 1.4 percent.
Peloton: The stock fell 2.7 percent. However, paper from the manufacturer of fitness equipment was able to increase by more than 20 percent on each of the past two trading days. After takeover speculation drove up the shares of the troubled fitness equipment specialist on Monday, the company announced a change of boss on Tuesday and wants to cut around a fifth of the jobs. CEO John Foley is stepping down in favor of former Spotify and Netflix chief financial officer Barry McCarthy. In addition, the construction of a factory in the USA was stopped.
Canopy Growth: Shares of the Canadian cannabis producer rose 8.5 percent. The company had reported a lower-than-expected loss and better-than-expected revenue for its most recent quarter. Cannabis sales, while down, were offset by growth in the beverage and e-cigarette categories.
Lyft: The ride-hailing company posted adjusted earnings of nine cents a share in its most recent quarter, a cent above estimates. Sales were also higher than expected. Nevertheless, the share fell 1.2 percent. Rider numbers came in below analysts’ forecasts, but this was offset by higher fares and longer trips by Lyft customers.
Over: The meal service of the transport service provider Uber Eats made a profit for the first time in the past quarter. After the US stock market closed, the entire group also announced a plus (EBITDA) of $86 million for the last quarter of 2021, exceeding analyst expectations of $62 million. Sales rose to $5.8 billion, according to Refinitiv data, experts had expected an increase of almost 69 percent to $5.3 billion. Uber CEO Dara Khosrowshahi said the market is starting to recover from the omicron wave of the coronavirus pandemic. Nevertheless, the outlook for the current first quarter remained below the forecasts. Uber shares rose 6.1 percent in after-hours trading.
Enphase Energy: The shares rose more than eleven percent because the manufacturer of solar and battery systems presented a better than expected quarterly report. Enphase earned an adjusted 73 cents per share for the quarter, comfortably beating the consensus estimate of 58 cents.
Yum: At Yum, sales growth of five percent exceeded market expectations. However, the restaurant chain’s earnings of $1.02 per share fell short of expectations. Rising costs are responsible for this, comments analyst Andrew Charles from asset manager Cowen. The papers of the mother of “Kentucky Fried Chicken” (KFC) and “Pizza Hut” still rose by 2.2 percent.
CVS: CVS titles, on the other hand, fell by more than five percent. Stockbrokers expressed disappointment that the pharmacy and drugstore chain has only confirmed its full-year targets after a surprisingly high quarterly profit. The company expects a decrease in corona vaccinations of up to 80 percent for the current year. In tests, it predicted a minus of up to 50 percent.
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