NEW YORK (Dow Jones) – After the initially positive mood on Wall Street tipped the previous day, the US stock markets tended to be weak again on Friday. The day before, increased market interest rates had shown that fears about interest rates were regaining the upper hand. This concern appears to have continued into the end of the week as bond yields continue to rise. Significantly rising oil prices are fueling fears of inflation and, ultimately, also of interest rate hikes. The Dow Jones index fell 0.1 percent to 33,679 points, while the S&P 500 and Nasdaq Composite fell 0.1 and 0.4 percent, respectively.
As a response to the western sanctions, Russia wants to cut back oil production, which is causing prices to rise more sharply. The consumer sentiment for February, which will be published in early trading, should show how much consumers are being held back by their inflation worries. The willingness of US consumers to spend is an important benchmark for the development of the economy, but also for inflation. “Sentiment has clouded over a little. The market was confident that we could expect interest rate cuts this year, but the strong labor market data put a spanner in the works,” says fund manager Sebastian Mackay of Invesco.
Market interest rates continue to rise
Yields continue to rise on the bond market, with the yield curve continuing to be inverted – two-year government bonds are yielding higher than paper with a ten-year term. This circumstance is generally regarded as a recession signal. However, many investors do not want to believe in a recession, which means that interest rate assumptions continue to rise. Rising market interest rates and increasing interest rate expectations support the dollar, the dollar index gains 0.1 percent.
The price increase in the oil market is attributed to the headlines from Russia. But prices are bouncing back from daily highs – weighed down by speculation that Saudi Arabia will close the gap.
Lyft break in
Among individual stocks, Lyft plummeted 34.6 percent in trading. The Uber competitor surprisingly reported a loss for the fourth quarter – and this despite a 21 percent increase in sales. For the first quarter, Lyft is forecasting lower sales than analysts had expected.
Expedia (-5.9%) also missed market expectations in the final quarter of 2022. Although the online travel portal recorded high demand, bad weather ultimately thwarted business. Paypal rose against the market by 3.5 percent. The payment service provider earned more than expected in the fourth quarter. Investors forgive the pessimistic outlook. In addition, CEO Dan Schulman announced his resignation at the end of the year.
Yelp jumped 7.7 percent after the company surprised on the upside with fourth-period sales. For the current first quarter, the company forecast sales above the analyst consensus.
News Corp reported a slump in profits in the second fiscal quarter just ended, with sales falling moderately. The company, which owns the Wall Street Journal as well as this news agency, wants to reduce its workforce by 5 percent overall. The course loses 7.1 percent. Alteryx (+12.8%) reported a 73 percent jump in revenue for the fourth quarter and issued an unexpectedly strong outlook.
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INDEX last +/-% absolute +/-% YTD
DJIA 33,679.44 -0.1% -20.44 +1.6%
S&P 500 4,076.12 -0.1% -5.38 +6.2%
Nasdaq Comp. 11,741.40 -0.4% -48.18 +12.2%
Nasdaq-100 12,339.69 -0.3% -41.48 +12.8%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.47 -1.6 4.49 5.3
5 years 3.87 +0.4 3.86 -13.2
7 years 3.80 +1.6 3.78 -17.3
10 years 3.68 +2.1 3.66 -19.9
30 years 3.76 +3.3 3.73 -20.8
FOREX last +/- % Fri, 8:08 Thu, 17:35 % YTD
EUR/USD 1.0697 -0.4% 1.0735 1.0747 -0.1%
EUR/JPY 139.91 -0.9% 141.15 140.88 -0.3%
EUR/CHF 0.9880 -0.3% 0.9894 0.9890 -0.2%
EUR/GBP 0.8830 -0.3% 0.8865 0.8848 -0.2%
USD/JPY 130.79 -0.5% 131.51 131.08 -0.3%
GBP/USD 1.2114 -0.1% 1.2108 1.2147 +0.2%
USD/CNH (Offshore) 6.8151 +0.3% 6.8069 6.7881 -1.6%
Bitcoin
BTC/USD 21,864.38 +0.5% 21,864.00 22,506.00 +31.7%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 79.16 78.06 +1.4% +1.10 -1.6%
Brent/ICE 85.53 84.50 +1.2% +1.03 -0.2%
GAS VT Settlem. +/- EUR
Dutch TTF 53.70 52.73 +1.8% +0.97 -28.9%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,865.35 1,861.30 +0.2% +4.05 +2.3%
Silver (Spot) 22.18 22.03 +0.7% +0.15 -7.5%
Platinum (Spot) 965.23 961.00 +0.4% +4.23 -9.6%
Copper Future 4.05 4.10 -1.2% -0.05 +6.2%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
February 10, 2023 09:48 ET (14:48 GMT)
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