NEW YORK (dpa-AFX) – At the start of the eagerly awaited two-day Fed meeting on Tuesday, investors on Wall Street are likely to remain cautious. The broker IG estimated the Dow Jones Industrial around three quarters of an hour before the start of trading, 0.35 percent lower to 35,528 points. The leading US index reacted slightly negatively to the announcement of current US consumer prices.
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The producer prices in the USA continued to soar. In November, prices at the manufacturer level rose by a surprisingly high 9.6 percent compared to the same month last year and thus even faster than in October. Since the start of the calculations in 2010, there had been no higher growth.
US Federal Reserve Chairman Jerome Powell is increasingly coming under pressure due to the recent sharp rise in inflation, stressed market analyst Christian Henke from broker IG: “For many market participants, the US Federal Reserve could increase the reduction in bond purchases as early as tomorrow.” Investors are also focusing on the discussion about raising the debt ceiling in the US Congress this Tuesday. A failure could hit the markets hard, believes CMC Markets analyst Jochen Stanzl.
For the technology-heavy Nasdaq 100, the indications on Monday suggest a decline of around 1.1 percent. Among the tech stocks, the focus could again be on Apple’s market valuation. Because the share of the iPhone manufacturer could break the 3-trillion dollar mark for the first time according to positive analyst studies, provided that it increases by a good 4 percent. In the pre-trading period, however, it did not look as if it had fallen by 0.5 percent initially.
Bank of America (BofA) upgraded Apple from “Neutral” to “Buy” and raised its price target to $ 210. The areas of augmented reality and virtual reality could become a “game changer” for the US company, wrote analyst Wamsi Mohan. The expert expects the introduction of a headset for augmented or virtual reality by the beginning of 2023 at the latest.
In addition, the US bank JPMorgan raised its target price for Apple to 210 US dollars. Analyst Samik Chatterjee praised the improved demand for the iPhone 13 and the ability that the group has so far managed to get the industry-wide disruptions in the chip and smartphone supply chains under control. Revenue growth could get another boost next year if the tech giant launches the 5G iPhone SE as expected.
Tesla’s shares reacted with a price decline of 2.2 percent to the news that company boss Elon Musk had sold a further 934,000 Tesla papers for 906 million US dollars. This means that Musk has already sold almost 12 million Tesla shares worth a good 12.7 billion dollars (11.25 billion euros) since he sold ten percent of his 17 percent stake in a Twitter vote at the beginning of November Participation in the electric car manufacturer had promised./edh/mis
Source: dpa-AFX
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