The Thursday session at Wall Street ended with an advantage of increases among the main indexes, and S&P 500 gained the fourth day in a row. Investors are wondering what can help in pulling the action up.
Dow Jones Industrial at the closure increased by 0.65 percent, to 42,322.75 points. S&P 500 at the end of the day increased by 0.41 percent and amounted to 5,916.93 points Nasdaq Composite lowered by 0.18 percent Until 19.112.32 points The index of companies with medium capitalization Russell 2000 is growing by 0.52 percent. and is 2,094.70 points The VIX index drops by 4.24 percent, to 17.83 points
– market moods moved to moderate optimism because Recession fears begin to give wayand share markets show basic strength. However, a number of risks of macro and micro still create a “wall of worries” through which investors must go through – said Joe Cusick, senior vice president and wallets specialist at Calamos Investments. – The next phase will depend on whether the current rally will be able to expand and maintain for the summer months, or whether he will give way to healthy consolidation or correction – he added.
From companies, Meta Platforms shares fell on Thursday by 4 percent. After the Wall Street Journal announced that the company is planning to delay the implementation of its main language model “Behemoth”.
Unitedhealth Group has dropped almost 11 percent. After the “Wall Street Journal” announced that the US Department of Justice was investigating the health insurer in terms of possible fraud under the Medicare program. The company said that it was not informed about the investigation by federal prosecutors. Over the past month, Unitedhealth shares have been overestimated by over half.
Cisco Systems shares increased almost 5 percent. After the manufacturer of network equipment raised his annual forecasts and appointed Marek Patterson with his new financial director. Apple shares fell less than 1 percent. Trump said he asked Apple CEO Tim Cook to stop building plants in India and instead restore production in the USA.
Foot Locker has gained over 85 percent After the competitive company Dick's Sporting Goods agreed to take over Foot Locker in a transaction worth USD 2.4 billion.
The ALIBABA Group Holding shares listed in the USA fell over 7 percent. The company recorded quarterly revenues lower than forecasts.
In the current environment, the economy may experience supplying supply shocks more often, which is a challenge for a decision in the field of monetary policy – said the president of the US Federal Reserve Jerome Powell on Thursday during the scientific conference of Thomas Laubach in Washington.
– We can enter a period of more frequent and potentially more durable supply shocks. This is a difficult challenge for the economy and central banks – said the head of the US Central Bank at a conference on monetary policy. – Higher real interest rates They may also reflect the possibility that inflation will be more variable in the future than in the inter-crisis period in 2010-2020-he added.
Powell said that FED members are considering changes in the key parts of the guidelines, which are guided when making decisions regarding monetary policy, including in the way of thinking about employment shortages in the US and the approach to the inflationary goal.
– Participants of the meeting decided that it would be appropriate to consider communication in the subject of deficiencies. At our meeting last week we had similar discussions on the inflation target – said Powell on Thursday in the comments prepared for a research conference on the Fed monetary policy frame. – We will ensure that our new consensus statement will be resistant to a wide range of changes in economic conditions and events – he added.
Powell did not provide a specific date of completion of the strategic review, he only said that he was expecting it in the coming months.
On Thursday, investors received a large portion of the latest data from the American economy.
The number of people applying for the unemployment benefit for the first time last week in the US amounted to 229 thousand. Economists expected that the number of new unemployed would amount to 228 thousand. against 229 thousand Previously, after correction with 228 thousand
The number of unemployed continuing benefit was 1.881 million a week, which ended on May 3. Analysts expected 1.89 million against previously recorded 1.872 million, after a correction from 1.879 million.
The New York (Empire Manufacturing) production activity index in May dropped to -9.2 points. from -8.1 points A month earlier, after correction. Analysts expected the index to be -8 points.
Retail sales in the USA in April increased by 0.1 percent. month to month. Analysts expected sales at 0.0 percent. Retail sales, excluding sales of cars, increased by 0.1 percent, an increase of 0.3 percent was expected.
A month earlier, retail sales in the US increased by 1.7 percent. In MDM, after a revision from +1.4 percent, and the exclusion of cars sales increased by 0.8 percent, after a correction with +0.5 percent.
Prices of production of the sold PPI industry in the US in April fell by 0.5 percent. In the terms of a month to month, year -on -year increased by 2.4 percent. After switching off food and energy prices, the PPI index dropped by 0.4 percent. MDM, and RDR increased by 3.1 percent
Analysts expected PPI to increase by 0.2 percent. MDM, and after turning off food and energy prices, they expected an increase of 0.3 percent. MDM compared to 0.0 percent respectively (after revision with -0.4 percent) and +0.4 percent a month earlier (after correction with -0.1 percent)
In RDR, PPI growth was expected by 2.5 percent. and an increase of 3.1 percent For the base indicator, due to: +2.7 percent, respectively and +3.3 percent last month.
The Philadelphia Fed production activity index in May increased to -4 points. Z: -26.4 points A month earlier, after correction. Analysts expected an index of -11 points.
The mood index among American construction companies, prepared by the National Association of Home Builders (NaHB), fell to 34 points in May. compared to 40 points last month. The market expected an index of 40 points.
On the oil market, contracts at WTI at May reduce by 2.19 percent. up to USD 61.77 per barrel, and June Futures on Brent Futures fall by 2.15 percent. up to 64.67 USD/B. (PAP Biznes)
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