Börse Express – New York equities: Profit-taking slows US stock market rally

NEW YORK (dpa-AFX) – The rally in the US stock market, which resumed on Tuesday at the start of the exchange, was dampened in trading. After further signs of a downward trend in inflationary pressure initially gave Wall Street the tailwind, profit-taking began about two and a half hours before the end of the stock market. The industrial Dow Jones , which had been remarkably close to 34,000 points at times, went negative. The S&P 500 and Nasdaq indices managed to hold on to some of their gains.

There is relief that producer-level price increases in October have weakened for the fourth time in a row and even more clearly than expected. The fact that the mood in industry in the New York economic area surprisingly brightened in November was also well received. However, according to market experts, this is already reflected quite clearly in the stock market recovery that has already occurred. He also pointed out that some short-term investors had already cashed in on Monday in response to the recent rally.

The Dow Jones fell 0.38% to 33,410.93 about two hours before the market close. S&P 500 at market level
it remained up 0.22% at 3966.09 points. The high-tech Nasdaq 100 it gained 0.79 percent to 11,793.68 points after rising nearly three percent earlier.

The rally in the US stock market gained momentum last Thursday, even after the release of data that high inflationary pressures in the US were easing. Finally, they reinforce hopes that the worst is over in terms of inflation and that the US Federal Reserve may be less aggressive in further interest rate hikes.

The Dow Jones is up more than four percent since consumer prices were announced for October, and has even risen about 18.5 percent since its last low in mid-October. Technology stocks have received a particularly strong boost from signs of inflation. They had so far lagged behind the broad market recovery and had previously declined particularly sharply. Since Thursday, however, the Nasdaq 100 pick index is up as much as 11.5%.

From a business perspective, shopping giant Walmart was persuasive on Tuesday with last quarter’s economic data, a higher annual sales target and a new share buyback program. The stock jumped 7.3% in the Dow. The net quarterly loss of US$1.8 billion was not significant. It has matured over a $3.1 billion settlement that Walmart accepted to settle a lawsuit for alleged complicity in the US opioid crisis.

Do-it-yourself chain Home Depot also posted strong business data for the third quarter . However, the company has yet to lift its full-year outlook, which, according to investment house Jefferies, has been disappointing. After a weaker start, the share increased by 0.6%.

Netflix’s doc also came under fire , which increased by 2.3%. Bank of America resumed its “buy” investment recommendation. The target price is $370. Netflix remains the leader in streaming, analyst Jessica Reif Ehrlich wrote. The company has transformed the world of entertainment in the way content is created, distributed and consumed. She also believes that the new advertising-based offer is an added value./ck/he

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0370 2022-11-15/20:06

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