indexes in this article
NEW YORK (dpa-AFX) – The US stock exchanges were allowed to start the new week with profits after the mixed week-end. Ninety minutes before the start of the stock market on Monday, the broker IG valued the leading index Dow Jones Industrial (Dow Jones 30 Industrial) 0.5 percent higher at 32,954 points. The technology-heavy NASDAQ 100 should gain a little more.
After the surprisingly strong US job market report on Friday, at least the Dow defied the fear of rising interest rates too quickly among the most important indices. On Wednesday, the debate about the future course of the US Federal Reserve to combat high inflation is likely to pick up speed again. Then the consumer price data for July will be released. In June, inflation in the US rose to 9.1 percent, the highest level in over 40 years.
According to statements by members of the US Federal Reserve, a further significant rise in interest rates is to be expected in the USA. The Federal Reserve is “far from done with the task of bringing down inflation,” said San Francisco Regional Federal Reserve Chair Mary Daly. According to Fed member Michelle Bowman, the central bank should come up with “a similarly large” rate hike as recently react to the high inflation in the USA. The Fed last raised interest rates by 0.75 percentage points at the end of July in order to curb inflation.
Higher interest rates paint equities in a poor light relative to other forms of investment, such as bonds, and make borrowing more expensive, which can slow economic growth. For now, however, investors are confident that the Fed can keep inflation in check without plunging the US into a deep recession.
Among the individual values, the papers from Pfizer are in focus. As speculated last week, the drugmaker plans to strengthen its rare hematology business with its multi-billion dollar acquisition of Global Blood Therapeutics (GBT). GBT shares are now up nearly 5 percent in premarket US trading after surging on both Thursday and Friday. Pfizer’s stock barely moved.
Avalara’s shares lost almost five percent before the market. The investment company Vista Equity, which specializes in business software, wants to take over the company, but the offer of USD 93.50 per share apparently did not convince investors. In addition, the sales generated in the second quarter were disappointing.
Investors are downright shocked by Palantir’s outlook. The papers of the data analysis company fell by around 14 percent before the market. At the pharmaceutical company Biontech (BioNTech (ADRs)), business in the second quarter was worse than expected, the shares lost almost eight percent./la/jha
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