Frankfurt Strong retail numbers and the prospect of a thriving holiday season have fueled Wall Street prices. The Dow Jones index of standard values rose 0.2 percent to 36,142 points on Tuesday. The technology exchange Nasdaq gained 0.8 percent to almost 15,974 points. The broader S&P 500 drew 0.4 percent to more than 4,700 points.
The raised annual forecast of the US retail giant Walmart provided for confidence. Because Americans started their Christmas shopping early for fear of empty shelves, industry sales rose surprisingly strongly in October.
US investors then grabbed hold of retail stocks and drove the S&P 500 industry index up. It temporarily rose 1.4 percent to a record high. However, the Walmart shares fell by 2.5 percent. Despite the more optimistic forecast, investors were disappointed, pointing out that higher costs due to delivery bottlenecks weighed on profit margins in the third quarter.
For example, Walmart chartered its own ships for shipping goods and, according to its own information, hired 200,000 new employees to cope with the rush of buyers in the run-up to Christmas.
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In contrast, the shares of the DIY chain Home Depot climbed around six percent to a record high. Thanks to the booming demand for home tools, sales have recently increased surprisingly strongly. Professional repair services that had to pause due to the pandemic made up for tool purchases. “There is a lot of catching up to do because for so long and because of so many restrictions, people couldn’t buy what they wanted,” said George Young, Portfolio Manager at Villere & Co.
Industrial stocks were also in demand after US manufacturing output rose surprisingly sharply in October. “If the biggest investor fear right now is a combination of hoarding, inflation and scarcity, today’s data – retail and industrial – shows the exact opposite,” said Mike Bailey, director at FBB Capital Partners.
The encouraging data helped investors get over comments from US currency watchdog James Bullard. In view of the rapidly rising prices, the head of the Fed District St. Louis called for an interest rate turnaround as early as possible next year. Supply shortages and the explosion in energy prices have catapulted US inflation to its highest level in more than three decades.
Concerns about rising inflation and the prospect of a slowdown in economic growth weighed on Wall Street last week. However, a Bank of America survey revealed risk-taking sentiment among investors towards the end of the year.
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Royalty-Pharma: US star investor Warren Buffett is on top of his investment vehicle Berkshire Hathaway joined the pharmaceutical company. The position was valued at $ 475 million at the end of the quarter. After the announcement, the share rose by around three percent; in the further course of trading, the share was still up 0.7 percent.
Floor & Decor: Buffett was also a new member of the Floor & Decor furniture chain. With the investment, the 91-year-old Berkshire boss is betting that Americans will invest more money in renovating their homes. This news causes the stock to rise by around six percent at times.
Rivian: The share of the electric car start-up is still in demand after the IPO. On Tuesday it went up by up to 15 percent. The price has more than doubled since the IPO. The market value of Rivian has overtaken that of the industry giant VW, data from the financial information service Bloomberg show: In Spitz Rivian was worth 143 billion dollars, VW the equivalent of 139 billion dollars.
Lucid: The stock rose 23 percent at times after the electric vehicle maker reported more than 17,000 reservations for its Air sedan. Lucid also confirmed its production targets for 2022
Autoliv: After the announcement of a new share buyback program in the amount of up to 1.5 billion dollars, the share rose by almost six percent. The automotive safety systems manufacturer also updated its growth target and expects growth of four to six percent per year through 2024 and beyond.
Workday: The stock of the company for personnel software rose by around one percent after the Swiss bank UBS classified the stock from “neutral” to “buy”.
Peloton: The fitness equipment specialist’s papers recovered a bit from their recent price slide, rising 15.5 percent. Peloton has apparently been able to reassure investors with the announcement of a capital increase after the company cut its sales forecast in early November. With the lifting of the corona restrictions, the business of connected training bikes, which cost several thousand dollars, is becoming more difficult. Bank of America analyst Justin Post said Tuesday that the market’s expectations for subscriber numbers were too pessimistic.
More: Twelve stocks that investors can use to invest in the future.