NEW YORK (dpa-AFX) – After some very high losses again at times, Wall Street managed to jump into positive territory at the close of trading on Friday, albeit extremely narrowly. Initially, the Chinese central bank cut an important reference interest rate for long-term loans as a support, but then things went downhill all the more noticeably. The complex of topics of high inflation, impending recession and rising interest rates dominated the market and left the broad S&P 500 temporarily slipped into a bear market, down more than 20 percent from its record high earlier in the year. But then bargain hunters grabbed again at the low level.
At the end of the day, the S&P 500 recouped the losses by up 0.01 percent to 3901.36 points. With a drop of a good three percent, however, it was the seventh week in a row with losses. This is the longest losing streak since 2001.
Der Dow Jones Industrial closed on Friday up 0.03 percent to 31,261.90 points. On a weekly basis, the Dow lost 2.9 percent. Even the tech-heavy Nasdaq 100
caught up towards the end of trading, but remained down 0.34 percent to 11,835.62 points.
According to business figures, Foot Locker knew about the individual values on the New York stock market to convince. After a solid first quarter, the sporting goods retailer spread optimism about its annual targets. The shares gained 4.1 percent.
For the titles of the agricultural machinery manufacturer Deere & Co.
fell by 14.1 percent. The quarterly figures were weak due to cost pressure, wrote analyst Robert Czerwensky from DZ Bank. The board is trying to cover up this by including a positive one-time effect in the profits and the annual outlook. The analyst criticized this as an unusual procedure.
The Tesla stock temporarily fell to the lowest level since July 2021, closing 6.4 percent weaker. Supply chain issues in Asia, the sell-off of highly valued growth stocks and uncertainty surrounding CEO Elon Musk’s proposed takeover of short messaging service Twitter
put the papers of the e-car manufacturer under increasing pressure.
For the shares of Ross Stores went down by 22.5 percent. The clothing discounter shocked investors with weak first-quarter results and the reduction of its full-year targets. Analysts then cut their price targets. Other stocks in the industry, such as Burlington Stores, were also caught up in the bad news with minus 15 percent.
The retail industry was under a lot of pressure this week. Walmart Target and Kohl’s
spread pessimism and sent prices plummeting. High inflation and rising transportation and labor costs are putting pressure on profit margins in the industry. Kohl’s slipped another 13 percent on Friday.
The Euro gave in easily. After the US market closed, the common currency was trading at $1.0561. The European Central Bank (ECB) had set the reference rate at 1.0577 (Thursday: 1.0525) dollars, the dollar thus cost 0.9455 (0.9501) euros.
On the bond market, the futures contract for ten-year Treasuries (T-Note Future) rose by 0.34 percent to 120.11 points. In return, the yield on ten-year government bonds fell to 2.79 percent./ajx/he
— By Achim Jüngling, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0348 2022-05-20/22:41
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