ROUNDUP / New York Stocks End: Losses – Fewer Fed bond purchases soon | 12/03/21

NEW YORK (dpa-AFX) – The US stock exchanges turned into the red on Friday after a friendly start to trading. The downside for the technology-heavy Nasdaq indices was particularly pronounced, while the Dow Jones Industrial (Dow Jones 30 Industrial) largely recovered from its daily losses.

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 ended trading with a small minus of 0.17 percent to 34,580.08 points and lost 0.9 percent over the course of the week. Since its record high in November of just under 36,566 points, it has now lost around five and a half percent. The market-wide S&P 500 lost 0.84 percent on Friday to 4538.43 meters. On the Nasdaq, the selection index 100 (NASDAQ 100) fell by 1.74 percent to 15,712.04 points, which means a weekly minus of almost two 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 4.3 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 topped the index with a plus of 17.7 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 to around $ 135.

The driver service broker Didi (DiDi Global A), which has come under great pressure from China’s regulators, announced plans to withdraw from the New York stock exchange. For the Didi papers it went down by 22.2 percent, Uber sank by 6 percent. The shares of the stock exchange novice Grab from Singapore increased after initially further losses by 2.7 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 briefly going up to $ 13.29, the grave paper finally sagged to $ 8.75.

After a slide below the mark of $ 1.13 at the close of the Wall Street market, the euro rose to $ 1.1309. The European Central Bank had set the reference rate at 1.1291 (Thursday: 1.1339) dollars. The dollar cost 0.8857 (0.8819) euros.

On the bond market, the futures contract for ten-year Treasuries (T-Note-Future) rose in late trading by 0.57 percent to 131.34 points. The yield on ten-year government bonds fell significantly to 1.36 percent./ck/mis

— By Claudia Müller, dpa-AFX —

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