Frankfurt Investors react to the monetary policy decisions of the US Federal Reserve with relief. On Wall Street, the broad S&P 500 and the Nasdaq technology index each rose about half a percent on Wednesday to record highs of 4,644 and 15,748 points, respectively. The Dow Jones limited its losses and was down 0.2 percent at 35,995 points.
The dollar index, which reflects the exchange rate to major currencies, came under pressure and lost up to 0.3 percent to 93,871 positions. US Treasuries were also thrown out of the custody accounts. This drove the yield on landmark ten-year Treasuries to 1.596 percent.
The Federal Reserve wants to reduce the volume of its securities purchases from the current $ 120 billion in mid-November and mid-December by $ 15 billion each. The volume should be similar in the following months. “The tapering is there and the Fed is just gently stepping on the brake pedal,” said Naeem Aslam, chief market analyst at brokerage firm AvaTrade.
Regardless of this, the price of WTI crude oil fell by 3.3 percent to $ 81.18 per barrel (159 liters) due to a surprisingly strong increase in US inventories. “Every price drop is an opportunity to buy,” said analyst Joshua Mahoney from brokerage firm IG. “Regardless of the World Climate Conference, I don’t see any turning away from fossil fuels.” The wish was there, but implementation would take time.
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Ethereum, on the other hand, continued to soar and rose by up to 3.1 percent to a record high of $ 4643.52. The second most important cyber currency after Bitcoin continues to benefit from the hope of the early introduction of a listed fund (ETF) on this cryptocurrency, said analyst Timo Emden from Emden Research. This could attract fresh capital.
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Lyft was one of the favorites in the US stock market. The title of the driving service broker rose thanks to a surprisingly large quarterly profit by almost nine percent, as much as last a year ago. Operating profit was $ 67.3 million, more than double what analysts had forecast.
The company is benefiting from the relaxation of the corona restrictions and is more profitable than before the outbreak of the pandemic, the analysts at KeyBanc praised. In the slipstream of Lyft, the papers of rival Uber gained around six percent.
Also in demand were stocks, which were discussed a lot on Reddit’s WallStreetBets website. The Bed Bath & Beyond share rose by almost 20 percent. The company, which announced a partnership with grocery chain Kroger on Tuesday, was one of the most talked about companies in the forum. Other so-called meme stocks were also in demand. Gamestop shares rose by up to 23 percent, the AMC stocks by over 14 percent.
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CVS Health: The drugstore operator and pharmacy services manager beat estimates by 19 cents with adjusted quarterly earnings of $ 1.97 per share. Sales also exceeded Wall Street forecasts. The results were boosted by the increased demand for Covid tests and vaccinations. The share rose by around five percent.
Capri Holdings: The shares of the company, which stands behind the Michael Kors and Versace brands, rose 15 percent as earnings and sales estimates for the last quarter were exceeded. Capri also raised the forecast for the full year.
Tupperware: Disappointing quarterly sales broke Tupperware’s biggest price slide in eight months. The stock of the food storage container company fell nearly 17 percent on Wall Street. The proceeds reached according to the information instead of the analysts expected 473.7 million dollars only 376.9 million. However, the surplus was more than twice as high as forecast. Tupperware owes this solely to a lower tax rate, writes analyst Douglas Lane of Lane Research.
New York Times: The newspaper publisher’s shares fell by more than seven percent. With an adjusted quarterly profit of 23 cents per share, the company had exceeded the estimates by three cents. Revenue also exceeded estimates thanks to rising advertising and digital sales.
Camping World: The recreational vehicle retailer’s shares rose more than ten percent. The company reported quarterly earnings of $ 1.98 per share. The consensus estimate, however, was only 55 cents. The sales also exceeded the forecasts of the street.
Allbirds: Shares in the eco-friendly athletic shoe company rose to $ 26.52 when it went public on Wall Street. This put them around 70 percent above their issue price of $ 15. The issue is worth $ 303 million.
Ford: Encouraging sales figures encouraged investors to invest in Ford. The automaker’s shares rose by around three percent and, at $ 18.67, were as expensive as they were almost eleven years ago. Ford reportedly sold 70,002 SUVs in October, the last 21 years ago. There are also 160,000 pre-orders for the electric version of the F-150 pickup.
Deere & Co: An ongoing tariff dispute sent Deere & Co downhill. The shares of the world’s largest manufacturer of agricultural machinery fell on Wall Street by more than four percent. Employees have rejected a collective agreement negotiated between the company and the UAW union.
More: 15 stocks with market power: who sets the prices in times of inflation.