Equities New York outlook: little moved after the previous day’s recovery – waiting for the Fed

NEW YORK (dpa-AFX) – After the recovery of the US stock exchanges from the previous day, investors in New York are taking it slower on Tuesday. The first bargain hunters grabbed it again at the beginning of the week, but now investors are waiting for the eagerly awaited interest rate decision by the US Federal Reserve on Wednesday, it said. In view of the high inflation, the key interest rate is expected to be raised by 0.5 percentage points.

The broker IG appraised the Dow Jones Industrial three quarters of an hour before the start of the stock exchange at 33,087 points, just above the level of the previous day, when it had made it late into the profit zone. The recovery in the Nasdaq 100, which had last hit a low in more than a year, was much more pronounced on Monday. The technology-heavy selection index is also seen slightly up pre-market.

The Fed is poised for its biggest rate hike since 2000. Market watchers say the Fed’s plans to hike rates and shrink its balance sheet will end an era of easy money. According to UBS expert Mark Haefele, investors must strategically prepare for high inflation, but not yet for a recession. He thinks it’s likely that inflation in the US has already peaked.

On the company side, the reporting season takes its course with figures from Pfizer, among others. The coronavirus vaccination and the Paxlovid pill against a severe course of the Covid 19 disease caused sales and profit figures to exceed expectations. Nevertheless, the papers only moved to the previous day’s level before the market. While the annual targets were basically confirmed, according to JPMorgan expert Chris Schott, there were some expectations that they could be significantly increased.

The shareholders of Dupont had to accept losses of 0.8 percent before the market. High costs for raw materials, among other things, slowed down operating profit in the first quarter, even if sales increased more significantly. For the year as a whole, the chemical company is more optimistic about sales, but more cautious about the profit margin.

Investors were more disappointed by the cosmetics group Estee Lauder and the automation group Rockwell, whose pre-market prices slipped by 9.3 and 8.8 percent. Burdened by the Ukraine war and renewed corona lockdowns in China, the previous annual targets for both sales and profit were capped./tih/jha/

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