NEW YORK (dpa-AFX) – Wall Street remains on a recovery course on Friday, also because of a glimmer of hope in the Ukraine war. After technology stocks dominated the Nasdaq with their rally the day before, standard stocks were now in greater demand. The driver was that, according to the Kremlin, Russia is ready for peace negotiations with Ukraine.
Despite the continued advance of Russian forces, which advanced as far as the capital Kiev, the Dow Jones Industrial extended gains to 34,017.70 points with two hours to go, up 2.39 percent. The day before, after the initial shock of the invasion of Ukraine, he had made it late into the red. From its lowest level in eleven months, it has now made up 5.4 percent of ground again in a very short time. He has almost made up for the previous week’s minus.
The market-wide S&P 500 followed by 1.99 percent to 4373.98 points. After a slow start, there were further gains in the tech sector, but they did not come close to the Dow. The NASDAQ 100 selection index, which is dominated by technology companies, was up 1.02 percent at 14,116.91 points.
A trace of hope in the conflict between Russia and Ukraine attracted bargain hunters again at the reduced price level. Moscow is ready to send a Russian delegation to the Belarusian capital of Minsk for talks, said Kremlin spokesman Dmitry Peskov. “One day after the start of the military escalation in the Ukraine-Russia conflict, investors on both sides of the Atlantic can take heart again,” judged market observer Timo Emden.
However, the EU was initially unimpressed by this: it also put Putin and Russia’s Foreign Minister Sergei Lavrov on its sanctions list. This means that any assets held by the two politicians in the EU will be frozen.
Among the Dow values, the financial stocks recovered from their previous day’s losses, as the shares of JPMorgan (JPMorgan ChaseCo) showed with an increase of 3.4 percent. However, the shares of the two conglomerates Johnson & Johnson (JohnsonJohnson) and 3M conquered the top with increases of more than five percent.
However, the little company news mostly met with a very negative response. According to the figures, Foot Locker shareholders had to cope with a price slump of around a third. A disappointing outlook for the current year temporarily pushed the stocks of the sportswear retailer to their lowest level since May 2020.
Another big loser on outlook statements was computer giant Dell (Dell Technologies), whose shares fell 6 percent. According to expert Tim Long from Barclays Bank, earnings per share also fell short of expectations in the fourth quarter. At 11.5 percent, the price losses for the meat substitute manufacturer Beyond Meat were particularly large according to its figures.
A big winner in the small cap area was the shares of the TV satellite operator Dish Network with a price jump of 10.8 percent. The drivers here were the experts from JPMorgan, who raised their vote by two notches to “overweight”. The prospects for investors are now better due to the recent weakness in prices. Analyst Philip Cusick expects positive price drivers that should improve the mood.
There was mixed news from the largest US crypto exchange Coinbase. A jump in profits in the past quarter contrasted with a cautious outlook. In view of the recent price slide in Bitcoin and Co., the company prepared investors for weaker deals. The shares lost 2.1 percent and thus headed for their record low from the previous day./tih/he