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Wall Street – quotations on February 10, 2023. Small changes on Friday, but it’s the worst week since December

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Friday’s session on Wall Street ended with minor changes in the main indices, but the week ending was the worst for US stocks since December 2022. The only sector of the economy that ended the week in positive territory on the stock exchange is oil companies.

The Dow Jones Industrial closed up 0.50%. and amounted to 33,869.27 points. The S&P 500 ended the day up 0.22%. and amounted to 4,090.46 points. The Nasdaq Composite lost 0.61 percent. and closed the session at 11,718.12 points.

The S&P 500 fell 1.4% for the week. It was the first falling week for this index in three weeks. The Dow Jones has lost 0.4% since Monday and the Nasdaq has lost 2.7%.

Variable signals

Investors are still analyzing the recent interest rate hikes. In USA, macroeconomic data and comments from members of the Federal Reserve. They cause volatility in global stock markets, as indicated by Shana Sissel, founder of Banrion Capital Management. In her opinion, investors are trying to adjust their position in the market by forecasting how the central bank will act in the future regarding momentary policy.

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– There are some volatile signals that cause volatility to increase. There is no broad consensus on what the leading indicators will be, and it is difficult to be sure how the situation will develop in the future. The markets don’t like that very much,” Sissel said.

“The tension we are now witnessing is that it remains to be seen whether the market will be right about interest rates will fall later this year or will be higher for longer, said Edward Stanford, head of European capital strategy at HSBC.

According to analysts, markets are still discounting scenarios of a mild economic slowdown, not a recession.

“In general, both equity and credit markets are discounting something like a soft landing and a return to normalized interest rate policy, which is increasingly unlikely,” said Dan Greenhaus, chief strategist at Solus Alternative Management.

The only positive sector

From companies during Friday’s session, Lyft fell by 35 percent. The company forecasts revenue for the first fiscal quarter of 2023 to be approximately $975 million, less than the $1.09 billion analysts had predicted. The results for Q4 were also below market expectations.

PayPal fell 0.5 percent. Q4 revenue was $7.38 billion vs. $7.39 billion expected.

The only sector of the economy that ended the week in positive territory on the stock exchange is oil companies. Phillips gained more than 7 percent in five days, and after about 7 percent. the prices of Marathon, Diamondback and EOG shares increased.

At the other extreme was the consumer goods industry, losing 6.5 percent since Monday. Lumen shares performed the worst in this sector, losing more than 25 percent.

Spotify gained 3% on Friday. after the information that ValueAct took over a block of shares of this music platform.

Expedia is down nearly 8%. after the results of this travel company in the fourth quarter of 2022 turned out to be weaker than analysts expected.

sentiment among consumers

The US consumer sentiment index, compiled by the University of Michigan, amounted to 66.4 points in February. against 64.9 points a month earlier – stated in the first calculation. Analysts forecast 65 points.

Richmond Fed chairman Thomas Barkin said on Thursday it was important for the Fed to continue to act to contain it inflation. Four other Fed policymakers expressed similar views on Wednesday.

On the oil market, WTI futures for March are trading at $79.83 a barrel, up 2.24%, while April Brent futures are up 2.34%. to USD 86.46/b.

Main photo source: Shutterstock

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