NEW YORK (dpa-AFX) – After the recent price gains, the US stock exchanges are likely to take a break on Wednesday. The broker IG valued the US leading index Dow Jones Industrial three quarters of an hour before the start of trading, almost unchanged at minus 0.04 percent at 35,441 points. The technology-heavy Nasdaq 100 was expected with a moderate increase of 0.10 percent to 15,427 meters.
Driven by the hope of good quarterly figures in the course of the current reporting season, the Dow had recently approached the record it reached in August. The markets were riding on the wave of optimism, it was said by market observers, but had ignored existing risks such as supply chain problems, material shortages and rising energy prices.
How the US Federal Reserve (Fed) assesses the economic situation is shown in the economic report (Beige Book) of the monetary authorities due in the evening. As a rule, statements by the Fed are currently being followed very actively by investors, as the central bank wants to put the brakes on its previously loose monetary policy.
The Helaba experts assume that the central bankers will point out the slowing economic dynamism, but at the same time notice the improvements in the labor market situation and the increased level of inflation. “On balance, the expectations that the bond purchase program will be cut in the coming month are likely to be maintained. However, future interest rate hikes will hardly be considered to be more likely,” the Helaba analysts write.
On the corporate side, the focus is still on the balance sheet season: shares in the streaming service Netflix slipped prematurely. Despite the unexpectedly strong third quarter, some observers found a fly in the ointment and criticized the outlook for the final quarter. Credit Suisse analyst Douglas Mitchelson believes that the group’s forecasts could turn out to be conservative.
Shares of the telecommunications company Verizon and the pharmaceutical company Abbott Laboratories, however, were in demand before the official start of trading – both companies raised their profit forecasts. United Airlines could also grow, the airline’s quarterly loss was significantly lower than expected. The numbers from the electric car manufacturer Tesla, which are always followed with great tension, are only after the trading hours, and the computer manufacturer IBM does not open its books until after the close of trading.
Meanwhile, a price crash is looming at the corona vaccine manufacturer Novavax – the shares recently collapsed by more than a quarter. According to a report by the online portal Politico, the company is struggling with production difficulties before the drug is approved. As the portal reported with reference to informed circles, there are problems to meet the high quality standards of the regulators. This could have a particularly negative impact on the international Covax vaccination initiative for poorer countries, which is also relying on extensive deliveries from Novavax, it said./tav/jha/
Source: dpa-AFX
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