NEW YORK (dpa-AFX) – The US stock exchanges are likely to continue their recovery course from the previous day before the weekend. One and a half hours before the starting bell, the broker IG assessed the Dow Jones Industrial 0.48 percent higher to 34,186 points. The technology indices are also expected to be friendly again.
Once again, Fed members reassured investors by saying that the inflation triggered by the economic upswing was only temporary. Some of the raw materials, which have recently risen sharply in price, have now gone downhill – that too let the fear of inflation subside somewhat on Friday.
So far, the week has been very volatile for the Dow. At the beginning, the most important Wall Street barometer climbed above the 35,000 mark for the first time, then dropped well below 34,000 points in the middle of the week under the impression of high inflation and the associated fear of higher interest rates. Since Thursday the signs have been pointing to recovery.
With retail sales, industrial production and the consumer climate determined by the University of Michigan, important economic data are due on Friday. The specifications for the individual publications are positive and the favorable economic scenario should be underpinned, commented the economists at Landesbank Helaba. “All in all, the figures will not see the Fed under acute pressure to take action to deviate from the current course.”
Recently, market participants repeatedly expressed concern that rising inflation in the course of a booming economy could induce the Fed to abandon its very expansionary pace a little. The analysts at Credit Suisse can also gain something from rising inflation expectations: this is negative for the dollar, but usually positive for cyclical sectors that are particularly dependent on the economy. You mentioned the banking industry, value stocks and small caps in particular.
The media group Walt Disney as well as the online portal for accommodations, Airbnb and the newcomer to the stock exchange and online food supplier Doordash are on Friday with quarterly figures in view.
The entertainment giant Disney continues to groan under the corona crisis, and its success in the streaming business also declined significantly at the beginning of the year. Since the pandemic largely paralyzes the rest of Disney’s entertainment empire, the group is dependent on the streaming services. Investors reacted disappointed to the numbers, the shares fell in the pre-market business by more than four percent.
Doordash’s first-quarter sales exceeded analysts’ expectations and continued high demand for food delivery – despite restaurants gradually opening again and increasing vaccinations among the population. Before the trading session, the stocks jumped a good nine percent.
Airbnb also knew how to convince the analysts with the bookings for the first quarter of the year. However, due to repayments of debts taken on during the pandemic, the loss increased enormously. Before the trading session, the shares were quoted 0.7 percent weaker.
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