Wall Street is back on the recovery path.
(Photo: Reuters)
Dusseldorf After the recent price gains, some US investors are cashing in. In addition, the rising oil price is depressing the mood on Wall Street, said Sam Stovall, chief investment strategist at research house CFRA. The US standard value index Dow Jones closed 1.3 percent lower on Wednesday at 34,358 points. The tech-heavy Nasdaq fell 1.3 percent to 13,922 points. The broad S&P 500 lost 1.2 percent to 4456 points.
In addition to the Ukraine war, the guesswork about the pace of the expected US interest rate hikes dominated the New York stock market. “Inflation is very high,” said Andrea Cicione, chief investment strategist at research house TS Lombard. “Therefore, if the Fed tightens too aggressively and the economy plunges into recession, the risk of policy mistakes increases.”
On the day before the summit of the heads of state and government of the seven leading industrialized countries (G7) and NATO, the discussion about a European embargo on Russian oil imports picked up speed again. Against this background, the price of US oil grade WTI increased by five percent to $114.73 per barrel (159 liters). This helped oil companies like Exxon and Chevron gain up to 1.6 percent.
When it comes to energy, it’s all about supply, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. “Until peace talks between Russia and Ukraine deliver a tangible, peaceful solution, investors will be concerned about this.”
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After several days of declines, the price of nickel on the LME exchange rose by the maximum possible 15 percent to $32,380 per ton. A stockbroker said he could not identify an immediate trigger for the jump in the price of the metal required for steel production. “But the supply is scarce. Add in the uncertainty surrounding Russian supplies and it looks cheap.”
Look at the individual values
GameStop: GameStop is one of the winners in the US stock market. The titles of the video game retailer rose by 14.5 percent after board chairman and billionaire Ryan Cohen made the purchase of 100,000 GameStop shares public in a mandatory announcement. In the slipstream of the GameStop rally, investors also boldly grabbed other “meme” stocks such as AMC or Koss. This is a group of companies that caused a sensation with price jumps in early 2021. The rally was fueled by small investors, in online forums encouraging each other to buy, unsettling some multi-billion dollar hedge funds that had been betting on these stocks falling.
US stock market expert Koch: “News vacuum until the reporting season could end the recovery course”
Adobe: Adobe, on the other hand, went down. The titles of the “Photoshop” provider fell over nine percent. The company announced a surprisingly high record turnover of 4.26 billion and earnings of 3.37 dollars per share for the past quarter. The revenues targeted for the current quarter and Profits, on the other hand, fell short of expectations at $4.34 billion, or $3.34 per share.However, analyst Derrick Wood of wealth manager Cowen is encouraging that management’s confidence in the company’s performance in the second half of the year is encouraging with “Outperform”.
However, the targeted earnings and surpluses for the current quarter remained below expectations at $4.34 billion or $3.34 per share. However, the confidence of the management in the course of business in the second half of the year is encouraging, wrote analyst Derrick Wood from the asset manager Cowen. He therefore reiterated his rating of the share as “Outperform”.
Marijuana Stocks: Marijuana stocks are up in the US. Previously, there had been news of two takeover deals in the industry. Cresco Labs buys Columbia Care for $2 billion. Aurora Cannabis is acquiring Thrive Cannabis parent company Terrafarma for $38 billion. Tilray is up 1.2 percent, Aurora Cannabis is up 0.8 percent, and Sundial is up 4.2 percent.
More: Moscow Stock Exchange resumes trading in 33 stocks