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New York Stock Exchange celebrates 230th anniversary with broad recovery rally

17 mei 2022

22:18

Supported by a strong retail sales figure, US stocks recovered. Nasdaq closed 2.8 percent higher. The housing market, which has not yet corrected, is showing more and more cracks.

The American stock exchange operator NYSE blows out 230 candles on Tuesday. That birthday is appropriately celebrated. The three largest US stock indices close with large gains. The Dow Jones gained 1.3 percent, trailing the S&P500 (+2.02%) and Nasdaq (+2.8%). Chinese technology, in particular, was able to strengthen as JPMorgan re-lists a dozen companies. The Nasdaq Golden Dragon Index, which tracks Chinese tech on Wall Street, gained 5.2 percent after the basket plunged 55 percent in the past 12 months.

Buffett kisses Citi and Paramount awake

Reports from his investment vehicle Berkshire Hathaway show that Warren Buffett has strengthened itself in recent weeks in banking group Citigroup, among others.

and media group Paramount

† Both companies were among the leaders in the S&P 500, gaining 7.6 percent and 15.4 percent, respectively.


Dip buyers popped up in wide corners of the market. Ten of the 11 major S&P sectors made gains, except for the retail sector. This has to do with a negative surprise at the country’s largest supermarket chain. † Walmart

shows that even the largest mastodons are no match for inflation levels. The supermarket group has failed to meet analyst expectations for the first time in many quarters and is forecasting a rare decline in profits this year. Higher costs for logistics and personnel weigh ‘unexpectedly heavy’, says the retail giant. Investors are shocked and send Walmart 11.5 percent lower, the strongest price loss in at least 15 years.

It wasn’t up to Joe Sixpack. American consumers are keeping their wallets wide open despite rising prices. US retail sales rose 0.9 percent in April. It is the fourth month in a row that the retail sector has seen growing sales. The figures are not adjusted for inflation. Adjusted for inflation, they grow by 0.3 percent.

The housing market has not yet started to correct. But the highest mortgage rates since 2011 show that this will be inevitable.

John Authers

Columnist Bloomberg



Sentiment in the US housing market is less rosy now that mortgage rates are skyrocketing and building material costs have risen sharply. Sentiment fell 8 points to 69 in May, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Readings above 50 are considered positive, but this marks the fifth straight month that builder sentiment has declined.

“The housing market hasn’t started to correct yet,” said Bloomberg columnist John Authers. “The highest mortgage rates since 2011, which have quadrupled in the past two years alone, indicate that that correction will come sooner or later.”

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