NEW YORK (dpa-AFX) – The US stock exchanges stabilized somewhat on Wednesday after a three-day slide. A dreary picture is emerging for the month of August after July had been very strong.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) fell only slightly on Wednesday by 0.09 percent to 31,761.79 points. The broader S&P 500 gained 0.19 percent to 3993.81 points and the tech-heavy NASDAQ 100 rose 0.61 percent to 12,417.77 points.
The trigger for the recently severely gloomy stock market sentiment was that US Federal Reserve Chairman Jerome Powell continued to tighten the markets last Friday monetary policy the Fed had agreed to in the fight against inflation. Since then, investors have been concerned that strict monetary policy action by the US Federal Reserve could lead to a recession. However, persistently high inflation would be even more damaging to the economy.
On Wednesday, disappointing economic data somewhat dampened fears that the Fed would act too decisively. The US private sector created fewer jobs than expected in August.
Among the individual values, the main focus is on company news. Bed Bath & Beyond (Bed BathBeyond) shares fell by around 23 percent. The struggling bathroom and home decorator announced major measures to get back on its feet, boost growth and profitability, and improve its balance sheet and free cash flow. From time to time he wants to sell his own shares to pay off his debts. In addition, jobs are to be cut and low-yield brand shops closed.
Hewlett Packard Enterprise (HPE) (Hewlett Packard Enterprise) stocks were modestly up, while HP Inc (HP) fell nearly 5 percent. HPE, which specializes in enterprise IT, software and services, reported increased revenue and earnings year-over-year for the third fiscal quarter. According to stockbrokers, the results were better than feared. However, the PC and printer manufacturer HP Inc lowered its outlook due to a rather weak demand.
Snap shares, on the other hand, are up almost 13 percent. The operating company of the photo app Snapchat announced that it would reduce its workforce by 20 percent and cut investments in selected business areas in order to contain costs in view of the weakening in the advertising market. The news also boosted the shares of industry colleagues Meta Platforms (Meta Platforms (ex Facebook)) and Pinterest, which rose by almost six and a good seven percent respectively./la/nas