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NEW YORK (Dow Jones) — Wall Street ended Tuesday mixed after mixed trading. Thus, much of the opening gains were eaten up again in the course of trading. The surcharges were not strong anyway, because in the past three sessions the market-wide S&P 500 had lost a total of 7.2 percent. It was the highest three-day drop since March 2020, when the world was confronted with the corona pandemic. This time fears of stagflation were pressing.
The Dow Jones index fell 0.3 percent to 32,161 points, while the S&P 500 and Nasdaq Composite gained 0.2 and 1.0 percent, respectively. A total of 1,336 (Monday: 389) price winners and 2,031 (3,051) losers were counted on the Nyse, and 105 (84) titles closed unchanged.
Dealers did not want to give the all-clear: There are no indications that inflation and thus the pressure on the US Federal Reserve to tighten monetary policy is easing, it said. “There is a potential catalyst this week that may slow down the market downturn: US inflation data on Wednesday. (…) An abatement in inflation is the only thing investors could hope for,” said analyst Ipek Ozkardeskaya by Swissquote Bank.
According to statements from retailers, the “poison cocktail” consisting of geopolitical risks from the Ukraine war, economic headwinds and rising interest rates represents the greatest threat to global growth in years and is weighing on the stock markets. “2023 should see a significant slowdown in growth and the specter of recession is really starting to loom,” warned Principal Global Investors’ chief strategist Seema Shah.
dollar remains firm
The dollar rose, the dollar index gained 0.3 percent – after an interim 20-year high the previous day. JP Morgan continues to believe in dollar strength. In addition to monetary tightening in the USA, the greenback is also benefiting from the global economic downturn. “The recent dollar appreciation is a pricing-in of slowing growth outside the US (…)”, say the analysts.
In addition to the dollar, US bonds again benefited from the poor market sentiment. Despite the prospect of further increases in key interest rates, yields fell as bond prices rose. The ten-year yield slipped back below the 3 percent mark. Gold prices eased on the prospect of higher interest rates.
Oil prices continued to show weakness with economic concerns. Brent and WTI each fell over 3 percent. The day before, prices had collapsed with the highest daily loss in over five weeks. Above all, the weak economy in China is causing concerns about demand, it said.
Pfizer with billion acquisition
Among the individual stocks, Pfizer (+1.7%) was in focus with a deal worth billions. The US pharmaceutical group buys the Biohaven Pharmaceutical Holding Company Ltd for 11.6 billion US dollars. Biohaven is the manufacturer of Nurtec ODT, a dual-acting antimigraine drug approved for both the acute treatment and episodic prevention of migraine in adults. Biohaven Pharmaceutical shot up 68 percent.
Groupon fell 12.5 percent after the voucher broker slipped into the red in the first quarter. The company also lowered its EBITDA forecast for 2022. Novavax grew by a good 1 percent. The vaccine manufacturer made a profit for the first time in the first quarter, but missed market expectations with this and with sales.
Zynga lost 1.4 percent. The online games provider performed worse than expected in the first quarter. Investors are also focused on the upcoming takeover by Take-Two Interactive Software, it said.
Microchip Technology reacted to the business figures of the semiconductor manufacturer with a plus of 6.1 percent. Despite capacity constraints, the company beat consensus estimates in its fourth fiscal quarter. Microchip’s outlook was also convincing.
The International Flavors & Fragrances (IFF) share reacted to the business figures and outlook of the fragrance and flavor manufacturer with a plus of 5 percent. Ringcentral’s figures and outlook (-0.2%) were received slightly negatively.
Peloton Interactive plummeted 8.7 percent. Society was frightened with falling sales and rising losses.
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INDEX last +/-% absolute +/-% YTD
DJIA 32,160.74 -0.3% -84.96 -11.5%
S&P 500 4,001.05 +0.2% 9.81 -16.1%
Nasdaq Comp. 11,737.67 +1.0% 114.42 -25.0%
Nasdaq-100 12,345.86 +1.3% 158.14 -24.4%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 2.61 +0.4 2.60 187.6
5 years 2.91 -3.6 2.95 165.3
7 years 3.00 -3.6 3.03 155.8
10 years 2.99 -4.9 3.04 147.9
30 years 3.12 -3.2 3.16 122.3
FOREX last +/- % Tue, 8:29 Mon, 17:32 % YTD
EUR/USD 1.0531 -0.2% 1.0567 1.0535 -7.4%
EUR/JPY 137.33 -0.2% 137.77 137.21 +4.9%
EUR/CHF 1.0482 -0.1% 1.0481 1.0476 +1.0%
EUR/GBP 0.8550 -0.1% 0.8553 0.8555 +1.8%
USD/JPY 130.39 +0.0% 130.36 130.24 +13.3%
GBP/USD 1.2318 -0.1% 1.2357 1.2314 -9.0%
USD/CNH (Offshore) 6.7464 -0.1% 6.7293 6.7631 +6.2%
Bitcoin
BTC/USD 31,265.81 +1.3% 32,507.39 32,162.66 -32.4%
ROHOEL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 99.61 103.09 -3.4% -3.48 +35.8%
Brent/ICE 102.34 105.94 -3.4% -3.60 +34.7%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,836.93 1,854.18 -0.9% -17.26 +0.4%
Silver (Spot) 21.23 21.81 -2.7% -0.58 -8.9%
Platinum (Spot) 966.50 959.88 +0.7% +6.63 -0.4%
Copper Future 4.16 4.19 -0.8% -0.03 -6.6%
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(END) Dow Jones Newswires
May 10, 2022 16:11 ET (20:11 GMT)
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