The nervousness on the markets is high despite signs of recovery in the meantime.
(Photo: Reuters)
new York Fearing more drastic rate hikes by the Fed, more investors are withdrawing from Wall Street. The leading indices Dow Jones, Nasdaq and S&P 500 fell by up to 2.2 percent at the opening on Thursday. With 31,476.55 points, 11,108.76 points and 3877.04 digits, they were listed as low as they were more than a year ago.
This speculation was fueled by US producer prices. In April they fell to eleven percent year-on-year. However, analysts had predicted a decline to 10.7 percent.
“We’re seeing inflation starting to slow, but not as fast as we’d hoped,” said Gene Goldman, chief investor at wealth manager Cetera. This unsettles investors, because if the Fed raises interest rates too aggressively, this will harm growth. “But if they’re too conservative, it hurts consumption, which in turn hurts growth.”
Walt Disney was one of the losers on the US stock market. The entertainment group’s titles fell 3.7 percent to a two-year low of $101.30 due to quarterly earnings below market expectations.
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The company also warned of the burden of supply chain problems and rising wages and salaries. Analysts at bank JPMorgan questioned Disney’s ability to sustain subscriber growth at its Disney+ streaming division and meet its full-year targets.
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Ford/General Motors: The US bank Wells Fargo has downgraded both stocks from “overweight” to “underweight”. Rationale: 2022 could be a profit peak for legacy automakers due to the shift to electric vehicles. Ford shares are down 4.1 percent, General Motors six percent.
Six flags: The amusement park operator reported a smaller-than-expected loss and better-than-projected revenue. The reasons given by the company were an increase in visitor numbers and higher expenses per guest. However, the shares fell almost four percent.
WeWork: Shares rose x.x percent after the quarterly results were released. The office-sharing company reported revenue that beat forecasts. The quarterly loss was 37 percent below that of the previous quarter. And gross sales were the highest since the first quarter of 2020.
Sonos: The maker of high-end audio products’ stock rose x.x percent after the quarterly results. Sonos posted better-than-expected sales on sustained high demand, although growth could be hampered by ongoing supply chain issues.
Walt Disney: Shares fell 4.5 percent after the company reported lower-than-expected earnings and sales for its most recent quarter.
Beyond Meat: Shares slipped 13.5 percent. The maker of plant-based meat alternatives reported a bigger-than-expected quarterly loss and reported sales that fell short of analysts’ estimates.
According to CEO Ethan Brown, costs related to strategic launches had impacted earnings. But in his opinion, this should pay off in the long term.
Lordstown Motors: The stock climbed 15 percent. The electric vehicle maker has completed the sale of various assets to contract manufacturer Foxconn. Lordstown will take in $260 million as a result.
Bumble: The dating app operator’s shares rose 10 percent. The company reported quarterly results that beat analysts’ estimates. Bumble saw a 7.2 percent increase in paying users in the quarter, with the resurgence of Covid-19 helping dating apps retain the users they gained during the pandemic.
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