Equities New York Outlook: Recovery continues after US labor market report | 12/03/21

NEW YORK (dpa-AFX) – After the recent recovery on New York’s Wall Street, the important US labor market report should outshine what is happening on the market on Friday. This turned out to be mixed. While investors initially held back in the run-up to the publication, there are now signs of a continuation of the upward trend with moderate gains in the US benchmark index. The broker IG valued the Dow Jones Industrial (Dow Jones 30 Industrial) with around 0.27 percent up at 34,732 points. For the technology-heavy Nasdaq 100 index, it should go up more clearly, here an increase of 0.6 percent was recently expected.

The day before, the US benchmark index had already succeeded in a recovery attempt with a plus of almost two percent after investors unsettled by the numerous news about Omikron had sent the Dow to a low since the beginning of October this week.

According to the US labor market report published around an hour before the start of trading, the US economy created far fewer jobs than expected in November. Outside agriculture, 210,000 jobs were added. Analysts had expected an average of more than twice as strong an increase of 550,000 jobs. Hourly wages had also not risen as much as expected.

The data from the US labor market are considered to be an important indicator for the further monetary policy of the Fed, the next meeting of which will take place in less than two weeks. In the opinion of observers, the US monetary authorities could decide at what pace they will further reduce their previously loose monetary policy. Authorities chief Jerome Powell had recently surprised with statements that the Fed could curb its securities purchases faster than expected. In the opinion of Helaba specialist Ulrich Wortberg, there is probably no reason for the Fed to abandon its plans despite the unexpectedly weak labor market report, as he wrote in a first reaction on Friday. After all, the recovery on the labor market continued in November and the unemployment rate fell again.

With its bond purchases, the Fed had given the stock markets considerable support in the past – and even more so during the Corona crisis. The US Federal Reserve sees the spread of the Omikron variant only as a risk, but it is now worried about the high inflation.

Among the individual values, the vaccine manufacturers are once again in view on Friday. Moderna and Novavax rebounded from their recent price losses with gains of five and six percent respectively. A new study in Great Britain on increasing the number of antibodies through booster vaccinations, in which seven vaccines were compared, should be helpful. The mRNA vaccines from Pfizer / Biontech and Moderna performed best there. For the Biontech shares listed on the US stock exchange, it rose by almost 3 percent before the start of trading, while Pfizer shares rose moderately.

Meanwhile, Chinese Uber rival Didi (DiDi Global A), who has come under severe pressure from China’s regulators, announced plans to withdraw from the New York Stock Exchange. The company announced on Friday that the board of directors had authorized the company to initiate the necessary proceedings. Voting should take place later at a shareholders’ meeting. At the same time, a listing on the Hong Kong stock exchange will be sought. Before the trading session, Didi shares fell by almost 5 percent, while Uber was trading a little higher than at the end of the previous day.

On the other hand, the shares in the chip manufacturer Marvell Technology were already in great demand before the official start of trading; after the quarterly report was presented, they recently increased in value by more than a fifth. Stockbrokers particularly pleased the outlook. More than 15 percent went up for the shares of the software developer Smartsheet, whose quarterly figures were better than expected./tav/eas

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