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NEW YORK (Dow Jones) — Wall Street showed a modest recovery Thursday after the mid-week sell-off. Although initial losses are largely recovered, the overall movement is rather modest. Because the fear of recession is still the dominant topic. Around noon local time, the Dow Jones index lost 0.5 percent to 31,320 points, after a daily low of 31,017 points. The S&P 500 is little changed and the Nasdaq Composite is up 1.0 percent after collapsing 4.7 percent the day before.
Investors fear that the US Federal Reserve’s rigorous tightening of monetary policy could push the domestic economy into recession. In addition, the disappointing business figures and outlook of several large US retail companies over the past few days have made it clear that inflation is already noticeably dampening private consumption, one of the most important pillars of the US economy.
Kohl’s and BJ’s Wholesale Club, other major US retailers, released figures on Thursday. Kohl’s clearly missed market expectations in the first quarter. Things were going quite well until the end of March, but inflation started to make itself felt from April, according to management. In addition, economic stimuli, from which the company benefited last year, have disappeared. After initial losses, the share gained 3.4 percent.
On the other hand, BJ’s Wholesale (+10.9%) did surprisingly well, mainly because the company made more sales from fuels. Also announced for Thursday are apparel retailer VF Corp (-2.2%).
Pessimistic outlook sends Cisco down
Cisco’s figures and outlook (-13.7%) are seen as a bitter disappointment. In the third business quarter, the telecom equipment supplier turned over less than expected. The company also lowered its sales forecast for the current fiscal year.
In addition, the market has to process some economic data. The number of initial applications for unemployment benefits increased in the previous week, while economists had forecast a slight decline. The Philadelphia Fed Index for May surprisingly fell sharply. The index of leading indicators for April also showed a slight decline, while an unchanged level had been expected here. Existing Home Sales for April fell 2.4 percent.
“Safe Havens” Still Wanted – Dollar Under Pressure Again
Concerns about the economy keep investors fleeing to “safe havens”. On the bond market, prices are once again rising sharply. The price of gold is also increasing significantly.
The dollar, on the other hand, which is often sought after as a safe haven currency in times of crisis, is once again declining significantly. Observers explain this with the fear of an economic downturn in the USA. The dollar index collapses 1.1 percent.
The oil market is once again very volatile. Fears of an economic downturn pushed the prices for WTI and Brent down by a good 4 percent over the course of the year. However, it is currently going up again. Participants point to the slight recovery on the stock market as a reason.
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INDEX last +/-% absolute +/-% YTD
DJIA 31,320.16 -0.5% -169.91 -13.8%
S&P 500 3,925.53 +0.0% 1.85 -17.6%
Nasdaq Comp. 11,531.70 +1.0% 113.54 -26.3%
Nasdaq-100 12,030.42 +0.9% 102.11 -26.3%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 2.63 -5.0 2.68 189.8
5 years 2.85 -4.6 2.90 159.0
7 years 2.86 -5.9 2.92 142.0
10 years 2.83 -6.2 2.89 131.8
30 years 3.03 -3.4 3.07 113.2
FOREX last +/- % Thu 9:27 Wed 17:20 % YTD
EUR/USD 1.0584 +1.2% 1.0473 1.0500 -6.9%
EUR/JPY 135.04 +0.6% 134.38 134.79 +3.2%
EUR/CHF 1.0300 -0.4% 1.0289 1.0377 -0.7%
EUR/GBP 0.8463 -0.2% 0.8480 0.8464 +0.7%
USD/JPY 127.59 -0.6% 128.37 128.36 +10.8%
GBP/USD 1.2506 +1.3% 1.2350 1.2404 -7.6%
USD/CNH (Offshore) 6.7229 -0.8% 6.7832 6.7681 +5.8%
Bitcoin
BTC/USD 30,295.59 +4.0% 29,211.40 28,941.58 -34.5%
ROHL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 110.20 109.59 +0.6% 0.61 +50.2%
Brent/ICE 110.34 109.11 +1.1% 1.23 +45.2%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,842.20 1,816.61 +1.4% +25.59 +0.7%
Silver (Spot) 21.86 21.42 +2.1% +0.44 -6.2%
Platinum (Spot) 959.90 938.90 +2.2% +21.00 -1.1%
Copper Future 4.27 4.18 +2.3% +0.10 -4.0%
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(END) Dow Jones Newswires
May 19, 2022 12:11 PM ET (16:11 GMT)
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