Börse Express – New York Stocks Outlook: Investors are cautious

NEW YORK (dpa-AFX) – After the weakness of the previous day, Wall Street should initially rise at the end of the week. However, prices, which are consolidating after a few days of rallying, are still lacking momentum. The focus remains on the US Federal Reserve’s interest rate policy and China’s handling of the pandemic. Broker IG has valued the leading Dow Jones Industrial index half a percentage point higher than Friday’s 33,718 points about an hour and a half before the starting bell. The Nasdaq 100 technology selection index it is expected to rise nearly 0.9 percent to 11,778 points.

This means that both indices would remain below their weekly highs by nearly 34,000 points and as much as 12,000 points respectively. The Dow and Nasdaq hit 100 on Tuesday on the back of interest rate cut expectations. Towards the end of last week, signs of easing inflationary pressure had revived hope among investors that the US Federal Reserve should first tighten interest rates less aggressively.

After the sharp rises in prices in recent days, the air was over. Since the low in mid-October, the Dow Jones has risen to about one-fifth.

The day before, St. Louis Regional Central Bank President James Bullard predicted a minor mood. He argued that the key interest rate should rise from at least 5.00 to 5.25% to control inflation. As a result, interest rate expectations on the financial markets rose again and equity prices fell slightly. Against this backdrop, investors continue to weigh every word central bankers say.

Economic data could move half an hour into Friday’s trading. Data on existing home sales for October and a composite index of key economic indicators will be released.

The chip industry supplier Applied Materials
convinced investors with surprisingly optimistic business outlook for the last quarter. Easing supply chain bottlenecks benefits the company. Numerous analysts have raised their profit expectations and raised their price targets. The shares had risen more than four percent before the market.

The shares of drug store and pharmacy chain Walgreens
Boots Alliance rose nearly 2% after JPMorgan analysts upgraded it to “Overweight.”

The Visa credit card provider Meanwhile, a new CEO has been named: On February 1, Ryan McInerney will take over as CEO from Alfred Kelly, he said. The manager has been responsible for Visa’s global business since 2013 and, according to the company, has 20 years of experience in the financial sector. Newspapers gained about half a percentage point ahead of the market, in line with the overall market./mis/jha/

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0189 2022-11-18/15:02

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