Further recovery – US economy on track

Frankfurt, New York The US stock exchanges have started to recover, led by price gains in technology stocks. The US standard value index Dow Jones closed on Tuesday 0.5 percent higher to 36,252 points. The technology-heavy Nasdaq advanced 1.4 percent to 15,153 points. The broad S&P 500 gained 0.9 percent to 4713 points.

The general conditions speak for further price gains, said investment strategist Ryan Detrick of the asset manager LPL. “We are aware of concerns about Omikron, inflation and tightening monetary policy. But US corporate balance sheets should justify once again that share prices are close to their record highs. ”On Friday, banks Citigroup and JPMorgan ushered in the balance sheet season.

In a previously published speech, Powell had declared war on inflation. The US inflation rate climbed to 6.8 percent in November – the highest value since 1982. For the December data due on Wednesday, an increase to 7.0 percent is expected. Delivery problems, material bottlenecks and almost exploding energy costs are further fueling inflation.

In the financial markets, following signals from the leadership of the Fed, there is speculation that the Fed could initiate a turnaround in interest rates as early as March and take further tightening steps this year to counter the sharp rise in prices. The key interest rate is currently in the range of zero to 0.25 percent.

Top jobs of the day

Find the best jobs now and
be notified by email.

The Fed’s monetary politicians signaled in December that they could raise interest rates three times this year. Goldman Sachs economists expect four interest rate hikes. Jamie Dimon, CEO of major bank JP Morgan Chase, believes there could be even more. “I am confident that we can achieve price stability,” Powell said to the senators.

In terms of stocks, Vir Biotechnology was one of the favorites with a price gain of 5.3 percent. The US government ordered an additional 600,000 doses of a drug to treat coronavirus patients from the pharmaceutical company. The titles of development partner GlaxoSmithKline gained up to 1.3 percent in London and, at 1663 pence, are as high as they were last year and a half.

Further individual values ​​in focus:

Biontech: The company expects sales of up to 17 billion euros with its Covid-19 vaccine this year. Last year, as previously predicted, sales were likely to have been between 16 and 17 billion euros. In 2022, CEO Ugur Sahin expects a range of 13 to 17 billion. Biontech confirmed that a vaccine adapted to the Omikron variant of the coronavirus could be available as early as March. Overall, the company is aiming for a production capacity of up to four billion vaccine doses this year.

However, according to the World Health Organization, further research is required before a vaccine specially tailored to the omicron variant of the coronavirus can be used. The share is about four percent. The titles of Moderna and Novavax fall similarly.

Rivian: The shares rose by a good two percent. Rod Copes, who is responsible for operations on the board, has left the electric vehicle manufacturer.

Intel: In demand were the titles of the chip manufacturer, which were more than one percent more expensive. Intel recruited rival Micron’s chief financial officer.

Zynga: The mobile game specialist is about to be taken over by the “Grand Theft Auto” maker Take-Two. Some analysts expect a bidding contest for the “Farmville” provider. Zynga shares advanced nearly five percent.

Juniper Networks: Bank of America had upgraded the stock from “underperform” to “buy”. Most network providers are still attractively valued and the current forecasts by Juniper’s management are conservative. The share rose by just under one percent.

IBM: The shares fell by almost 2.2 percent after the Swiss bank UBS downgraded the company’s shares from “neutral” to “sell”. The reasons were risks for the operating result as well as an allegedly “excessive valuation”.

CVS Health: The drugstore operator raised its profit forecast for the full year. The company now expects earnings of 8.33 to 8.38 dollars per share, the previous forecast was at least eight dollars, the current consensus estimate was 8.03 dollars per share. CVS shares up 0.9 percent.

More: These eight stocks are the bearers of hope for the stock market year 2022.

.
source site-11