New York equities: losses – Fewer Fed bond runs more likely | 12/03/21

NEW YORK (awp international) – The US stock exchanges turned into the red on Friday after a friendly start to trading. The downside was particularly pronounced for the technology-heavy Nasdaq indices. The labor market report for November was somewhat mixed, but according to market experts it was good enough that the US Federal Reserve (Fed) could reduce its bond purchases more quickly than last thought. This was also underpinned by strong sentiment data from the non-manufacturing sector for November and orders for the US industrial sector in October.

The Dow Jones Industrial fell around two hours before the close of trading by 0.55 percent to 34,449.25 points and is currently down 1.3 percent over the course of the week. Since its record high in November of just under 36,566 points, it has now lost almost 6 percent.

The market-wide S&P 500 lost 1.35 percent on Friday to 4515.28 meters. On the Nasdaq, the selection index 100 fell by 2.44 percent to 15,600.54 points, which means a weekly minus of almost three percent.

Although the US economy created significantly fewer jobs than expected in November and hourly wages rose less than expected, the recovery continued and the unemployment rate fell again, said expert Ulrich Wortberg from Landesbank Helaba. There is therefore no reason for the Fed to abandon its plans.

The monthly labor market data are an important yardstick for the further monetary policy of the Fed, the next meeting of which will take place in less than two weeks. With its bond purchases, the Fed had given the stock markets considerable support in the past – and additionally accelerated in the Corona crisis. So far, she sees only one risk in the current expansion of the Omikron variant. However, she is more and more worried about the high inflation. In view of the economic recovery from the Corona crisis and the high inflation rate in the USA, the International Monetary Fund (IMF) has now also recommended tightening its loose monetary policy.

Among the individual stocks in the Dow, the shares of Walgreens Boots Alliance moved up 3.7 percent to the top of the index. As the British business broadcaster “Sky News” reported, citing unspecified sources, the US drugstore and pharmacy chain is examining a possible sale of its British subsidiary Boots for a billion amount.

In the Nasdaq 100, after quarterly figures and a positive outlook, the shares of the chip manufacturer Marvell Technology were at the top of the index with a plus of 16 percent. In addition, Goldman Sachs now recommends buying the shares and sees further growth potential.

At the same time, the Nasdaq selection index for the shares of DocuSign fell by a hefty 42 percent. The electronic signature company fell short of analysts’ revenue estimates in the past quarter. That raised concerns about slowing growth after the 2020 pandemic fueled demand. The stock, which hit a record high of just under $ 315 in August, has now plummeted below $ 140.

The driver service broker Didi, who has come under heavy pressure from China’s regulators, announced plans to withdraw from the New York stock exchange. The Didi papers recently fell by almost 19 percent, while Uber fell by almost 7 percent. The shares of the newcomer Grab from Singapore increased after initially further losses by 2.4 percent.

This vehicle service broker and food delivery service, which was merged with the listed investment vehicle Altimeter Growth, a so-called Special Purpose Acquisition Company (SPAC), had made its rendezvous on the Nasdaq the day before. But after it went up to $ 13.29 for a short time, the Grab paper had finally slumped to $ 8.75./ck/mis

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