NEW YORK (dpa-AFX) – After records the day before, the US stock exchanges are expected to change little by the middle of the week. The nervousness rises and falls with the rise or fall of the yields of trend-setting ten-year government bonds, said market watcher Craig Erlam of broker Oanda. When this had risen to a twelve-month high the day before, worries about inflationary trends aroused. Now the yield has fallen a little again, but investors remained vigilant. As long as optimism drives with a view to an economic recovery, everything is fine. “But if yields begin to rise too quickly, the mood in the stock market is likely to change quickly.”
Broker IG valued the leading index Dow Jones Industrial around three quarters of an hour before the stock market launch unchanged at 31,524 points.
Major economic data due on the day includes producer prices and retail sales, both of which rose far more sharply than expected. Shortly before the stock market launch, data on industrial production and capacity utilization are also expected in January, which should also attract increased attention.
Among the individual stocks from the Dow, Apple, Chevron and Verizon could be in view after Warren Buffett’s investment vehicle Berkshire Hathaway reduced or increased stakes in these companies in the fourth quarter. The share in the iPhone manufacturer Apple was reduced. Before the trading session, the shares fell by one percent. Chevron and Verizon were bought. The shares of the oil company and the telecom company rose before trading began.
Otherwise, quarterly figures and outlooks for some second-tier companies should be taken into account. The car rental company Avis surprised with higher than expected net sales in the fourth quarter, which made for a pre-market plus of 2.6 percent. The technology company Agilent impressed with a strong outlook. Bank of America reacted promptly and now recommends Agilent shares as a buy. Most recently there was a pre-market plus of 2.6 percent. Meanwhile, the insurer AIG reported a declining adjusted surplus in the past quarter, which caused the stock to suffer a small pre-IPO loss./ck/fba