USA MARKETS / Small change – Encouraging service of company numbers | News

NEW YORK (Dow Jones) – US stocks are more or less flat in the middle of the week after a sharp rise on Tuesday. Unconfirmed reports on the resumption of Russian gas supplies via the Nord Stream 1 pipeline have temporarily dispelled concerns about the energy crisis in Europe. Now, however, doubts arise again: according to its own statements, on Wednesday, the Russian state-owned gas company Gazprom has not yet received any documents for the return of a gas turbine for the Nord Stream 1 gas pipeline, which has been repaired in Canada. Reinstalling the turbine has a direct impact on safe operation.

Just after the opening ring, the Dow Jones index fell 0.2 percent. The S&P 500 is hovering around Tuesday’s closing. Nasdaq Composite increased by 0.3 percent. Encouraging quarterly reports from some large companies soothe fears of recession. However, the key issues remain high inflation and the efforts of the US Federal Reserve to combat it. speculation about one rate hike The 100bp rate hike, which was sometimes hot in the past week, has now largely disappeared from the market, but a 75bp rate hike is considered agreed. Investors fear the Federal Reserve may hold the economy down by being too rigid.

As for the economic data, only the sale of existing houses from June will be published. To this end, investors are faced with a series of quarterly reports. Netflix was a particularly positive surprise (+ 1.2%). The streaming provider lost subscribers in the second quarter, but by no means as many as feared.

Pharmaceutical company Abbott Laboratories not only fared better than expected, but also improved its prospects. Despite this, this share drops by 2.6%. The Group’s nutrition department recorded a decrease in sales, caused, inter alia, by the campaign to recall baby food and the temporary suspension of the production of relevant products.

Elevance Health’s outlook (-4.5%) includes both good and bad. While the company raised its full-year adjusted earnings forecast, it is increasingly pessimistic about its unadjusted earnings. The stock market operator Nasdaq (+ 4.2%) made more than expected. The company also announced a 1: 3 split of shares.

In turn, oil industry equipment supplier Baker Hughes disappointed expectations, and its share then fell by 11.6%. Merck & Co. fell 0.5 percent after Keytrude’s failure in the head and neck cancer treatment (HNSCC) study. After the closing bell, Tesla, Alcoa, Qualtrics and United Airlines report on their operations.

Safe Haven Demand – Recession concerns drive down oil prices

The inflow of “safe havens” proves that a few good data about companies is not enough to reassure investors. Rising prices lower yields on the bond market. The dollar is gaining again; the dollar index rises by 0.1 percent.

The euro remains above USD 1.02 on Tuesday. In light of the rumors that appeared the day before that the ECB – contrary to earlier assurances – will consider raising the ECB’s deposit rate by 50 instead of 25 basis points, the currency expert Ulrich Leuchtmann from Commerzbank speaks of a clearly positive euro signal. Together with the rumors, the ECB market expectations would move upwards along the entire curve.

Not only the date but also the scale of the increases would be analyzed. If it is still only 25 basis points, it fears a big disappointment for the euro. Now, when 50bp is being discussed, a 25bp step would have to be interpreted as a decision that the ECB would consciously and deliberately disappoint with market expectations. This would be more damaging to the euro than if this expectation never existed.

Concerns about recession bring oil prices down again. Actors are waiting for official data on US oil supplies. Contrary to expectations, the data released by the API trade association on Tuesday showed an increase in inventories. The market is currently torn between concerns about a possible economic downturn in demand and a supply shortage. However, most analysts assume that demand will remain relatively high even with weaker economic growth. Both the International Energy Agency and OPEC only slightly lowered their demand forecasts.

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

DJIA 31 775.74 -0.2% -51.31 -12.6%

S&P 500 3,936.14 -0.0% -0.55 -17.4%

Nasdaq Comp. 11 745.30 + 0.3% 32.15 -24.9%

Nasdaq-100 12 277.29 + 0.2% 27.87 -24.8%

US bonds

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

2 years 3.19 -5.0 3.24 246.2

5 years 3.10 -5.0 3.15 183.7

7 years 3.08 -4.8 3.13 164.0

10 years 2.97 -5.0 3.02 146.4

30 years 3.14 -3.8 3.18 123.8

FOREX last +/-% Wed 8:37 Tue 17:25% YTD

EUR / USD 1.0234 + 0.1% 1.0232 1.0239 -10.0%

EUR / JPY 141.33 -0.0% 141.26 141.10 + 8.0%

EUR / CHF 0.9916 + 0.1% 0.9920 0.9913 -4.4%

EUR / GBP 0.8528 + 0.1% 0.8527 0.8515 + 1.5%

USD / JPY 138.06 -0.1% 138.29 137.81 + 19.9%

GBP / USD 1.2001 + 0.0% 1.1998 1.2025 -11.3%

USD / CNH (offshore) 6.7554 + 0.2% 6.7565 6.7469 + 6.3%

Bitcoin

BTC / USD 24,004.43 + 1.4% 23,635.89 22,818.02 -48.1%

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

WTI / Nymex 102.65 104.22 -1.5% -1.57 + 42.2%

Brent / ICE 105.73 107.35 -1.5% -1.62 + 41.1%

GAS VT close +/- EUR

Dutch TTF 153.51 154.60 -0.6% -0.95 + 41.5%

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

Gold (spot) 1,712.95 1,711.75 + 0.1% +1.20 -6.4%

Silver (Spot) 19.07 18.75 + 1.7% + 0.32 -18.2%

Platinum (Spot) 875.10 878.00 -0.3% -2.90 -9.8%

The future of copper 3.36 3.29 + 2.1% +0.07 -24.4%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln / flf

(END) Dow Jones Newswires

July 20, 2022 09:46 ET (13:46 GMT)

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