Börse Express – New York Stocks: Dow fluctuates between moderate gains and losses

NEW YORK (dpa-AFX) – US stocks cautiously opened the shortened week of Thanksgiving. After the recent run of the Dow Jones Industrial Wall Street’s best-known index is consolidating to a three-month high, according to stockbrokers. The Dow has gained nearly 18% since mid-October. The Nasdaq 100 index, which is predominantly stocked by technology stocks, has also had a notable recovery since then.

The Dow fluctuated between low gains and losses on Monday. About two hours before the close of trading, the US stock market barometer rose 0.12% to 33,785.87 points. The S&P 500 index it fell by 0.23% to 3956.22 points. The Nasdaq 100 it lost 0.80% to 11,584.30 points.

On the one hand, there is nervousness given the coronavirus situation in China: the increase in infections and then on Sunday the first coronavirus death in a good six months is disturbing. China’s tough anti-Covid stance is one of the biggest risks to global economic growth, and investors now fear the country could roll back on announced easing. The hope of moving away from previous policy had recently been one of the drivers of the recent stock market recovery.

On the other hand, the US Federal Reserve minutes are on the agenda, and soon consumer prices and the next interest rate decision will be on the agenda as well. According to experts at private bank Berenberg, further upside potential is therefore likely to be limited for the time being. According to them, whether the year-end rally continues will become apparent in mid-December when inflation data for November is announced on the 13th and the Fed announces its next rate hike the following day.

The current US stock market tightening is also due to the Thanksgiving holiday. For many investors, this means a long weekend, as Thursday is a public holiday and trading is reduced on Friday. This leaves time for “Black Friday” to ring in the Christmas deals. It will be interesting to see how high inflation affects US buying behavior.

On the corporate side, Walt Disney shares rose on Monday in focus, which jumped 6.4%. A surprising change of boss provided a boost. Longtime CEO Bob Iger is returning to the helm of the entertainment giant following Bob Chapek’s resignation. RBC analyst Kutgun Maral praised Iger as a highly respected executive with a long track record. However, such a shift also brings with it strategic uncertainties, he critically noted.

The uncertainty surrounding China and the Corona situation has had an impact on oil prices and thus also on the prices of oil stocks. Also, a press story about a possible increase in production by the OPEC+ oil association has sometimes had a major impact. The economic newspaper “Wall Street Journal” reported on a possible fundamental change in OPEC+ financing policy. The main OPEC country, Saudi Arabia, is discussing a production increase of 500,000 barrels per day with other OPEC countries ahead of the association’s next meeting on Dec. 4. However, Saudi Arabia has contradicted the report.

So recently, oil prices have recovered and US oil inventories have pared losses. So Chevron papers paid for themselves just 1.1% in the Dow. ExxonMobil
and ConocoPhillips fell between 1.1 and 1.9 percent in the S&P 100./ck/nas

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0238 2022-11-21/20:09

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