ROUNDUP / Close of stocks in New York: Indices weaken at the end of strong week | News

NEW YORK (dpa-AFX) – At the end of a strong stock market week, investors realized gains on the US stock exchanges on Friday. After a particularly strong recovery, this was especially true for the tech sector as the NASDAQ 100 showed a decline of 1.77% to 12,396.47 points. The drop in prices at the app provider Snap has caused a bad mood among the online exchanges there.

US standard stocks, which had risen less recently, came under less pressure as a result: the Dow Jones Industrial (Dow Jones 30 Industrial) fell 0.43 percent to 31,899.29 points. The broad S&P 500 index lost 0.93 percent to 3,961.63 points.

All three New York indices peaked in six weeks in a multi-day recovery rally. Even though the Nasdaq 100 dropped more sharply on Friday, the Technology & Technology Index recorded its best weekly result with a 3.5% upward. The Dow grew by nearly 2 percent over the course of the week.

Investors have received a lot of news from the geo and Monetary policy and companies that had to digest, concluded analyst Craig Erlam from the broker Oanda. In view of the high inflation, central banks see the only solution in aggressive monetary policy tightening. While the reporting season has yet to go that far, the tendency was that much of the data was “not as bad as feared”. This brings relief, but is not enough for a lasting recovery.

According to Brsians, the fear of inflation damage, soaring interest rates and a recession is hard to fight. Unrest was also sustained by disappointing economic data. In the US in July, the moods in the services sector worsened surprisingly and significantly significantly, as shown by the S&P Global Purchasing Managers’ Index.

At the end of the week, investors’ attention focused primarily on the provider of the Snap photo app. The market talked about “shocking” numbers and shares fell 39 percent. Snap saw the slowest growth since going public a little over five years ago and increased quarterly losses. As a result, there were several downgrades of analysts’ ratings. JPMorgan analyst Douglas Anmuth abandoned his optimism about stocks, downgrading the rating to underweight.

Due to the advertising prospects, Anmuth was skeptical of the entire internet industry. TikTok hasn’t been explicitly mentioned by Snap, but the development of this platform is likely to have a big impact. It therefore expects consensus estimates in many sectors to decline. The papers of the parent companies of Google and Facebook Alphabet (Alphabet A (ex Google)) and Meta (Meta Platforms (ex Facebook)) lost up to 7.6 percent. Those from Pinterest, Snap’s competitor, have dropped by as much as 13.5 percent.

Overall, the reporting season for companies was rather negative in the headlines this time. In the telecoms sector, the turmoil continued after AT&T’s cash flow forecast was downgraded the day before, as Verizon also disappointed with its results. At a discount of 6.7 percent. shares fell to their lowest level since 2017. Verizon has revised down its year-long goals.

Memory makers have also suffered heavy losses. Following unmet expectations and a weak outlook, Seagate Technology stock plunged 8.1 percent, driving competitor Western Digital’s stock down 6.4 percent. It was followed by industrial chip supplier Micron (Micron Technology) with a discount of 3.7 percent.

A positive ray of hope was the American Express stock at the Dow summit, with prices rising almost two percent. The financial services provider, known primarily for credit cards, exceeded analysts’ expectations despite the decline in revenues and raised the annual sales growth target.

The euro hovered around the USD 1.02 level. It was recently listed just above it at $ 1.0208. The European Central Bank set the reference rate at $ 1.0190 (Thursday: $ 1.0199).

US government bonds rose in contrast to the stock market. The 10-year T-Note Future rose 0.92 percent to 120 points. In return, the yield on ten-year government bonds fell to 2.77%.

— Author: Timo Hausdorf, dpa-AFX —

Leave a Comment