By Steffen Gosenheimer
NEW YORK (Dow Jones) — Wall Street got off to a mixed start on Thursday, within narrow limits. After the gains from the previous day, the players are initially holding back a bit. The day before, hopes for a swift and timely settlement of the dispute over the US debt ceiling before a default occurs had brightened sentiment. Both US President Joe Biden and Republican Speaker of the US House of Representatives Kevin McCarthy had struck more conciliatory tones.
On the economic side, the number of initial jobless claims in the US fell a little more sharply than expected in the previous week, and the situation in US industry in the Philadelphia region brightened noticeably and more strongly than expected in May. Recession worries are thus pushed somewhat into the background.
The Dow Jones index fell shortly after the start by 0.3 percent to 33,321 points. The S&P 500 has hardly changed, the Nasdaq indices with many growth stocks are doing slightly better than on the previous days, increasing by up to 0.4 percent.
On the bond market, the upward trend in yields that has been observed for days is continuing vigorously. While it was mostly hawkish comments from circles at the US Federal Reserve that drove market interest rates up, it is now the unexpectedly favorable economic data. They fuel speculation that the end of the rate hikes has not yet been reached.
This also supports the dollar, which continues to push higher. The dollar index rose 0.4 percent. The US currency is at a seven-week high against the euro. Gold continues to fall, currently down $23 to 1,958 a troy ounce. The precious metal is becoming less and less attractive compared to bonds as yields continue to rise. Oil prices fall moderately.
Cisco after numbers with discounts – Take-Two with price jump
Among the individual values, Cisco give way by 1.8 percent. Although the network equipment supplier has presented surprisingly strong figures and increased its profit forecast for the current financial year, the development of incoming orders was disappointing.
In contrast, Take-Two Interactive Software jumped more than 11 percent. While the video game provider has reported mixed numbers, it announced groundbreaking new titles in its outlook for next year. Investors also suspect the next version of the blockbuster “Grand Theft Auto”.
Walmart (+2.4%) beat expectations for the first quarter and raised full-year earnings guidance.
Alibaba (-2.2%) just missed sales expectations in the fiscal quarter ended March, but at the same time managed a significant increase in profits. In addition, the Board of Directors decided to spin off its Cloud Intelligence Group.
The Facebook owner Meta Platforms (+0.7%) has to reckon with a record fine from the European Union in the data protection dispute. The fine is likely to eclipse Amazon’s highest-ever fine of €746 million, Bloomberg reports, citing sources.
The cloud computing division of Amazon (+2.0%) intends to spend billions on expanding the data center infrastructure in India in the coming years. The equivalent of almost 13 billion dollars is to be invested by 2023
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INDEX last +/-% absolute +/-% YTD
DJIA 33,328.77 -0.3% -92.00 +0.6%
S&P 500 4,157.55 -0.0% -1.22 +8.3%
Nasdaq Comp. 12,542.04 +0.3% 41.48 +19.8%
Nasdaq-100 13,651.43 +0.5% 62.17 +24.8%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.22 +5.5 4.16 -20.0
5 years 3.65 +6.5 3.59 -34.7
7 years 3.64 +7.1 3.57 -32.5
10 years 3.63 +5.9 3.57 -25.4
30 years 3.90 +4.8 3.85 -6.8
FOREX last +/- % Thu, 7:55am Wed, 5:35% YTD
EUR/USD 1.0783 -0.5% 1.0830 1.0829 +0.7%
EUR/JPY 149.09 -0.0% 148.90 148.87 +6.2%
EUR/CHF 0.9738 -0.0% 0.9743 0.9735 -1.6%
EUR/GBP 0.8673 -0.1% 0.8686 0.8676 -2.0%
USD/JPY 138.29 +0.5% 137.52 137.49 +5.5%
GBP/USD 1.2434 -0.5% 1.2467 1.2481 +2.8%
USD/CNH (Offshore) 7.0578 +0.7% 7.0319 7.0087 +1.9%
Bitcoin
BTC/USD 27,253.90 -0.4% 27,254.62 26,797.97 +64.2%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 72.06 72.83 -1.1% -0.77 -10.2%
Brent/ICE 76.71 76.96 -0.3% -0.25 -9.0%
GAS VT Settlem. +/- EUR
Dutch TTF 30.20 31.95 -5.5% -1.76 -59.2%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,959.72 1,982.00 -1.1% -22.28 +7.5%
Silver (Spot) 23.49 23.75 -1.1% -0.26 -2.0%
Platinum (Spot) 1,067.65 1,073.48 -0.5% -5.83 -0.0%
Copper Future 3.68 3.75 -1.8% -0.07 -3.6%
YTD relative to previous day’s close
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DJG/err/gos/jhe
(END) Dow Jones Newswires
May 18, 2023 10:00 ET (14:00 GMT)
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