MARKETS US concerns and pregnancy stagflation on Wall Street | News

NEW YORK (Dow Jones) – Tuesday’s roller coaster ride continues on Tuesday on Wall Street. The recent pattern of decline in prices persists after the bullish day. Early on, the Dow Jones index fell 0.6 percent to 32,702 points, while the S&P 500 and Nasdaq Composite also lost 0.6 percent each. The day before, the indices had already managed to give up most of the daily gains during trading with growing fears of stagflation. This time, the warning about profits from retailer Target and a higher than expected rate hike in Australia weighed on sentiment. Rising interest rates and weak retail sales data accurately outlined concerns about stagflation.

Inflation weakens consumers’ purchasing power, while the tightening of monetary policy limits growth. As retailers have warned, there may be a recession at the end of this process. Kleinwort Hambros ‘investment strategist Fahad Kamal summarizes investors’ concerns as follows: “We are still on the move in terms of inflation and growth and whether we will see a recession.”

Target crash after profit alert

Target lagged behind with 6.4 percent. The retailer warned against a decline in earnings because, inter alia, higher discounts are needed when selling goods. Retailers see this as a clear sign of falling consumer spending. This thought also weighs on other industry stocks: Walmart and Costco lost 2.5 and 1.6 percent respectively, Amazon lost even 2.7 percent. The sector tops the loser list with a 2.7 percent discount.

Defying the sector trend, Kohl’s grew 6.3 percent. The company says it is in advanced sales talks that could value the US department store chain at around $ 8 billion. The company announced that it has entered into exclusive sales talks with retail holding company Franchise Group Inc., confirming the Wall Street Journal report.

Peloton Interactive’s shares fell by 2.7 percent. The company also changes its chief financial officer just four months after the appointment of a new CEO – a move amid the continued losses of a fitness equipment manufacturer.

Apple securities lose 0.2 percent. The American technology group wants to offer installment purchases to US customers since the fall. Apple wants to partner with payment service provider Mastercard (-0.1%).

JM Smucker lost 3.4 percent. despite the poor prospects. Investors focus on better-than-expected business data. BuzzFeed rose by 10.3 percent, recovering slightly from a 41 percent decline from the previous day. The holding period has expired, preventing members of the management board and major shareholders from selling the shares.

bonds are going up

In the bond market, prices are recovering along with the bleak economic outlook, but ten-year government bond yields still stand at 3.00%. This mark was crossed the day before for the first time since mid-May. Former US Treasury Secretary Lawrence Summers is calling for more aggressive measures to curb inflation.

The dollar rises on fears of stagflation and Summers’ statements, the dollar index gains 0.2%. The significantly reduced trade deficit also helps the dollar. There is little going on with gold and earth today.

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INDEX last + / -% absolute + / -% YTD

DJIA 32 702.20 -0.6% -213.58 -10.0%

S&P 500 4,098.47 -0.6% -22.96 -14.0%

Nasdaq Comp. 11,990.38 -0.6% -70.99 -23.4%

Nasdaq-100 12 522.30 -0.6% -77.33 -23.3%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 2.71 -0.4 2.72 198.2

5 years 3.00 -4.3 3.04 173.6

7 years 3.03 -5.2 3.08 159.3

10 years 3.00 -5.1 3.05 148.7

30 years old 3.15 -4.7 3.20 125.2

FOREX last +/-% Tue 9:44 Mon 17:37% YTD

EUR / USD 1.0685 -0.1% 1.0687 1.0690 -6.0%

EUR / JPY 141.73 + 0.5% 141.86 140.66 + 8.3%

EUR / CHF 1.0414 + 0.3% 1.0414 1.0358 + 0.4%

EUR / GBP 0.8533 -0.0% 0.8565 0.8531 + 1.6%

USD / JPY 132.62 + 0.5% 132.75 131.58 + 15.2%

GBP / USD 1.2524 -0.1% 1.2477 1.2530 -7.5%

USD / CNH (offshore) 6.6801 + 0.4% 6.6715 6.6573 + 5.1%

Bitcoin

BTC / USD 29 621.63 -5.9% 29 546.90 31 298.10 -35.9%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 119.00 118.50 + 0.4% 0.50 + 63.5%

Brent / ICE 119.40 119.51 -0.1% -0.11 + 58.3%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,847.16 1,841.47 + 0.3% + 5.69 + 1.0%

Silver (Spot) 21.99 22.08 -0.4% -0.09 -5.7%

Platinum (Spot) 1 006.57 1 022.00 -1.5% -15.43 + 3.7%

The future of copper 4.38 4.44 -1.3% -0.06 -1.6%

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / flf / cln

(END) Dow Jones Newswires

June 07, 2022 09:52 ET (13:52 GMT)

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