Investors expect a disappointing upcoming accounting season.
(Photo: IMAGO/Xinhua)
Frankfurt A few days before the start of the Wall Street accounting season, nervousness among investors is mounting. The US indices went on a roller coaster ride on Tuesday. Speculations about disappointing company results initially caused losses, but later the stock exchanges temporarily made up ground thanks to bargain hunters.
In the end, the market barometers did not find a common direction. Traders also justified the rollercoaster ride with a statement from Bank of England (BoE) Governor Andrew Bailey. This called on pension fund managers to rebalance their positions by Friday. Then the temporary support program for the country’s bond market expires.
The Dow Jones closed 0.1 percent higher at 29,239 points. An increase in the price of the pharmaceutical company Amgen of almost six percent after a positive analyst comment helped the standard values index slightly up. The technology-heavy Nasdaq, on the other hand, fell 1.1 percent to 10,426 points. The broad S&P 500 lost 0.7 percent to 3588 points.
Stock market expert Koch: “Everything is bad? Does it really look that bleak?”
Europe’s stock exchanges had previously fallen for the fifth trading day in a row. “Rampant inflation combined with a restrictive monetary policy, geopolitical tensions and the fear of a recession are fundamentally weighing on the stock markets,” said investment expert Salah Bouhmidi from the trading house IG Europe.
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Individual values in focus:
bank stocks: Investors tremble at the glimpse of the health of the US economy when four of the country’s largest lenders – JP Morgan, Wells Fargo, Citigroup and Morgan Stanley – open their books as the earnings season kicks off. “The net margin numbers should be very good for those banks that aren’t tied to investment banking revenues, but should be pretty weak for those that are,” said Rick Meckler, a partner at wealth manager Cherry Lane Investments .
US Car Service Provider: Shares in the US ride-hailing service providers Uber and Lyft and the food supplier Doordash came under pressure and lost between six and twelve percent. The background is a planned regulation by the US labor authorities that would make it more difficult for companies to treat employees as independent contractors. Thus, workers would be entitled to more benefits and legal protections, which would increase labor costs.
Zscaler: The shares of the provider of a cloud-based security software platform stood out with a loss of more than five percent. President Amit Sinha surprisingly resigns his post.
Coinbase: Coinbase gained after announcing a partnership with search engine service Google. The cryptocurrency platform’s stocks rose 4.6 percent. Some Google customers should be able to pay for their cloud services with selected cyber currencies via Coinbase. “For Coinbase shareholders, this news is grist to the mill. It remains to be seen to what extent demand will actually develop in a practical sense,” said analyst Timo Emden from Emden Research.
Disney: The stock extended its price losses in the late US business. It was listed 2.2 percent lower. Dealers refer to a media report that the entertainment company wants to postpone the broadcast of some movies. “Blade”, “Deadpool 3” and “Fantastic Four” are affected, according to the “Hollywood Reporter”. In the course of the year, the paper has already given way 40 percent.
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