Wall Street is back on the recovery path.
(Photo: Reuters)
new York The US stock exchanges started the weekend with slight gains. However, the sharp increase in yields on the US bond market prevented larger price jumps. Ten-year US Treasuries hit their highest level in almost three years. They are now profitable at 2.5 percent. This can make companies’ refinancing costs more expensive and reduce profits. In addition, risky equity investments become less attractive when bonds that are considered safe offer higher yields.
The Dow Jones Industrial, which had risen by a good one percent the previous day, closed 0.44 percent higher at 34,861 points. The impasse below the 35,000 point mark continued. On a weekly basis, the Dow posted a moderate plus. The broad S&P 500 was up 0.51 percent on Friday at 4543.06 points, while the Nasdaq 100 fell 0.08 percent to 14,754 points. He had gained a lot the day before.
According to traders, fears of a further escalation of the Russia-Ukraine conflict and that the US Federal Reserve would tighten interest rates too quickly. Morgan Stanley investment expert Mike Loewengart said investors are readjusting their growth expectations in light of ongoing inflation, geopolitical turmoil and the shift in monetary policy.
The focus remained on the developments surrounding the war in Ukraine. Hopes for a mediating role for China arose after China’s President Xi Jinping and British Prime Minister Boris Johnson exchanged views on the issue. In the phone call, Xi pledged a constructive role in persuading Ukraine and Russia to negotiate peace, Chinese state media report.
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According to US estimates, Russia has shifted the focus of its military operation in Ukraine away from the capital Kyiv to the Donbass in the east of the country.
Look at the individual values
Cannabis Stocks: The prospect of legalizing marijuana nationwide in the US makes cannabis stocks attractive. Wall Street-listed shares of Sundial, Tilray, Hexo and Cronos are up as much as more than 20 percent. According to a media report, the US House of Representatives is to vote on a corresponding law in the coming days.
Joby: The advance into the profit zone encourages investors to get involved with Joby. The shares of the electric flight taxi manufacturer climbed by more than twelve percent. The company reportedly made a profit of $5.05 million in the fourth quarter.
Honor Company: The Honest Company reported a stronger-than-expected quarterly loss. Sales of masks and disinfectant products fell significantly. Shares fell 22.5 percent.
Wall Street expert Koch: The S&P 500 is experiencing a record-breaking profit streak
Teva Pharmaceutical: Bernstein upgraded Teva Pharmaceutical’s stock to “Outperform” from “Market Performance,” noting an improved balance sheet, new product launches and the potential to resolve opioid litigation. Teva gained 5.5 percent.
SWITCH: The technology infrastructure company was downgraded from overweight to equal weight in Wells Fargo Securities. Switch closed at $30.24 on Thursday. At the start of the stock market, the share fell by 2.3 percent.
More: “Gray swans”: Investors should pay attention to these five risks