NEW YORK (dpa-AFX) – After the weak previous week, the US stock markets started trading on Monday with different signs. Slowed down, among other things, by a collapse in Boeing prices, the Dow Jones Industrial (Dow Jones 30 Industrial) fell by 0.30 percent to 37,352.89 points after one hour of trading. The aircraft manufacturer was less significant on the broader market, with the S&P 500 gaining 0.39 percent to 4,715.50 points.
Driven by a general recovery in chip values and rising IT stocks, the technology-heavy Nasdaq 100 index (NASDAQ 100) recorded a clear recovery. The selection index on the Nasdaq stock exchange rose by 1.03 percent to 16,473.62 points on Monday. It has given way particularly significantly so far this year. This discount is currently around two percent, while for the Dow it amounts to less than one percent.
After the weak start to the year, investors are waiting for US inflation data due on Thursday, which will have a major impact on the monetary policy the US Federal Reserve Bank. On Friday, a surprisingly strong labor market report had little impact on prices, but it put a further damper on hopes of imminent interest rate cuts. These are not expected before May, wrote expert James Knightley from the Dutch bank ING.
Investors are also looking increasingly excited about the corporate reporting season, which will pick up steam in the USA at the end of the week with announcements from various banks. The valuation level is already high and with it the risk of disappointments in the upcoming reporting season, wrote the analysts at the French bank Exane BNP. This means that the risks outweigh the opportunities.
Boeing shares fell more than eight percent in the Dow after a dangerous incident involving a 737-9 Max aircraft. After a part of the cabin including a window was torn off during a flight, around 170 of these aircraft were temporarily banned from taking off. This will lead to investor concerns about Boeing’s ongoing quality and supplier problems with this model, commented UBS analyst Gavin Parsons. The consequences for the group cannot yet be estimated.
However, airline stocks were unimpressed by the fact that jets of this type that may have been used will now remain on the ground and have to be checked. They benefited from falling oil prices, which can potentially reduce fuel costs. American Airlines shares rose four percent and Delta Air Lines shares rose 2.4 percent.
Shares in oil companies, on the other hand, came under pressure. Chevron and ExxonMobil lost up to 3.5 percent. On the market, the price fluctuations were justified by the fact that the leading OPEC country Saudi Arabia had reduced the selling price for important trading partners in Asia. This underscores the deteriorating global outlook for oil demand, market observers said.
Lululemon (Lululemon Athletica) shares, which recently fell from their record high, fell by another 1.7 percent. According to expert Aneesha Sherman from Bernstein Research, raised targets for the current fourth quarter were not surprising, as the previous ones were already considered conservative. She pointed out that the sales target in particular was even slightly below expectations.
There were still results from Abercrombie & Fitch (AbercrombieFitch), but here they caused a price jump of eight percent. Along with its forecasts for the fourth quarter, the textile retailer also raised its sales target for the full year. The market was saying that better-than-expected Christmas business would benefit the emerging company. The price has more than tripled since May.
Citigroup shares fell 1.8 percent to $53.35 in an environment of generally weak financial stocks. The experts at Societe Generale recommend selling the US investment bank’s securities. The French lowered the price target for the bank’s shares from $50 to $43.
Doordash (DoorDash) gained 3.46 percent. The online delivery service’s papers were helped by a new buy recommendation from analyst firm Jefferies, which also increased its price target from $90 to $130. Analyst John Colantuoni now sees the food delivery service as a “top pick” and prefers it to Uber, which operates in the same area. He expects Doordash’s operating profit to double within two years./tih/he