Volatile Wall Street ends in the green

(ABM FN-Dow Jones) Wall Street ended in the green on Monday after a volatile session. The S&P 500 eventually rose 0.3 percent to a close of 4,410.13 points and the Nasdaq closed 0.6 percent higher at 13,855.13 points. The Dow Jones closed 0.3 percent in the plus at 34,364.50 points.

With that, the indices recovered from steep losses earlier in the day, with the Dow Jones index falling about 1,100 points.

According to market analyst Naeem Aslam of AvaTrade, it is a crucial week for stock markets, partly because of the Federal Reserve’s interest rate decision that is on the agenda on Wednesday, but also the company figures of major tech companies such as Apple, Microsoft and Tesla.

Market experts are counting on the Fed to prepare the market even more emphatically for a rate hike in March. Investors expect four rate hikes this year. Goldman Sachs economists, however, are not ruling out a hike at any policy meeting in 2022, if inflation rises further.

Geopolitical tensions also play a role in sentiment. Concerns over a Russian invasion of Ukraine are mounting as the United States Department of State has called on the families of embassy officials to leave the country. The White House, meanwhile, is considering sending troops to Europe.

According to macro strategist Sebastien Galy of Nordea Asset Management, the markets could react unpredictably to a military conflict and its possible consequences.

Macroeconomic news failed to cheer investors up on Monday. The Chicago Fed National Activity Index fell below zero in December. The index fell from a position of 0.44 in November to 0.15 negative in December.

Furthermore, economic activity in the US manufacturing and services sector declined in January. The composite index came in at 50.8, compared to 57.0 in December. The index is therefore also at its lowest level in eighteen months.

“The sharp increase in corona cases almost brought the US economy to a standstill at the start of the year,” said Markit economist Chris Williamson, pointing to further disruptions in the supply chain.

The WTI oil price closed 2 percent lower on Monday. The euro/dollar was trading at 1.1323 near the close.

Company news

Halliburton returned to profit in the fourth quarter as sales grew in North America and internationally. The oil services provider is also positive about 2022 and is counting on an acceleration in cash flow and a stronger balance sheet. The stock rose about 4 percent.

Kohl’s stock rose nearly 36 percent after reports of takeover bids from two interested parties. According to the Wall Street Journal, hedge fund Starboard Value wants to pay $9 billion with a consortium.

An activist investor demands that Peloton fire its CEO. The exercise bike maker’s share is down 80 percent and Blackwells Capital, holding less than 5 percent, claims chief executive John Foley. The company should be sold, sources say. Peloton closed about 10 percent higher.

IBM fell slightly in the run-up to the quarterly figures, Monday after market hours.

Bron: ABM Financial News

From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.

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