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 rollercoaster ride on Tuesday. Speculations about disappointing company results initially caused further losses, but then the stock exchanges made up ground thanks to bargain hunters.
By midday, the Dow Jones was up 1.2 percent at 29,559 points. A rise in the price of the pharmaceutical company Amgen of more than six percent after a positive analyst comment helped the standard value index up.
The broader S&P 500 rose 0.6 percent to 3,632 points. The index of the technology exchange Nasdaq was 0.3 percent higher at 10,569 points. The volatility index neared its two-week high. 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.
Economic pessimists were also in the majority on the raw materials markets. Brent crude oil from the North Sea fell by two percent to $94.24 per barrel (159 liters) and copper by 0.3 percent to $7556 per ton. The resurgence of the coronavirus pandemic in top buyers China is also depressing the mood here, said stockbrokers.
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Economically sensitive stocks fell out of favor with investors. The S&P 500 banking index fell more than 1 percent to its lowest level since November 2020.
Stock market expert Koch: “Everything is bad? Does it really look that bleak?”
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 Uber and Lyft and the grocer Doordash came under pressure and lost between four and eight 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 four percent. President Amit Sinha surprisingly resigns his post.
Coinbase: The cryptocurrency platform’s share price took off after announcing a partnership with search engine service Google. At the top, the titles increased by 7.5 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.
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