NEW YORK (dpa-AFX) – The US stock markets rose on Friday thanks to the mostly positive quarterly reports from US companies. However, there were also some clear downward outliers in the individual values. Buying sentiment dampened concerns about inflation and the potential impact on regional banks following the collapse of Silicon Valley Bank. Officials at the US Federal Reserve are therefore now calling for far-reaching changes to banking regulations.
The Dow Jones Industrial (Dow Jones 30 Industrial) climbed above the 34,000 mark for the first time in ten days, reaching its highest level in two and a half months in the closing minutes. Ultimately, the leading US index gained 0.80 percent to 34,098.16 points. This results in a weekly gain of around 0.9 percent. In the trading month of April, the Dow recorded a plus of around 2.5 percent. The market-wide S&P 500 rose 0.83 percent on Friday to 4069.48 points. The NASDAQ 100 gained 0.65 percent to 13,245.99 points.
Investors are nervous about uncertainty over possible further rate hikes by the Fed after fresh inflation data on Friday raised the likelihood of a hike next week and possibly in June, the market said. Labor costs increased more than expected in the first quarter. The better-than-expected Chicago Purchasing Managers’ Index for April provided slightly positive impetus.
Ahead of the weekend, a few corporate heavyweights offered a peek at the books, with mixed price reactions. Intel’s stock soared four percent as the Dow leader. The manufacturer of semiconductors and data centers posted a slump in sales and billions in losses in the first quarter, but analysts had expected worse.
In contrast, Amazon’s shares lost four percent after the quarterly report. The online retailer started the new financial year with a surprisingly significant increase in sales. Expectations were also exceeded in terms of earnings. However, management’s conference call brought the uncomfortable realization that the cloud business saw only weakened growth in April. For Amazon, the cloud division is a key profit driver because of its high profit margins.
Snap shares fell 17 percent. At the company known for the photo app Snapchat, sales fell by seven percent in the past quarter. Previously, the service had been known for explosive growth.
The two oil– and gas giants Exxon Mobil (ExxonMobil) and Chevron earned more on average in the first quarter than analysts had expected on average. Exxon stocks are up 1.3 percent and Chevron is up 1 percent.
T-Mobile US (T-Mobile US) lost four percent. The US subsidiary of Deutsche Telekom (Deutsche Telekom) did not grow as strongly as expected in service revenue at the beginning of the year and even posted a decline in revenue overall.
First Republic Bank shares were suspended from trading after falling more than 50 percent to a record low. It had previously been reported that receivership was the most likely scenario for the regional bank. Ultimately, the shares lost 43 percent.
The euro held steady above $1.10 in US trading and was last traded at $1.1014. The European Central Bank (ECB) had set the reference rate at 1.0981 (Thursday: 1.1042) dollars. The dollar had thus cost 0.9106 (0.9056) euros.
US Treasury bond prices rose. The futures contract for ten-year bonds (T-Note Future) rose by 0.53 percent to 115.34 points. In contrast, the yield on ten-year government bonds fell to 3.44 percent./edh/he
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2023-04-28 20:40:39
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