Producer prices slow recovery on Wall Street

Producer prices slow recovery on Wall Street

Dealers in New York

aInterest rate concerns are weighing on global markets.

(Photo: IMAGO/Xinhua)

Frankfurt The prospect of a sustained rate hike by the US Federal Reserve dampened the buying mood of investors in the US stock market on Wednesday. The leading indices Dow Jones, Nasdaq and S&P 500 rose by around 0.2 percent at the opening.

US producer prices rose 0.4 percent mom in September, twice as much as expected. In addition, inflation fell less sharply than had been hoped compared to the same period of the previous year. Inflation is stubborn and speculation about an easing is premature, said Joe Saluzzi, manager at brokerage house Themis.

So the Fed is raising interest rates in large increments. A quick end to this phase is not in sight. Investors are certain that the Fed will raise interest rates by 0.75 percentage points for the fourth time in a row at the beginning of November.

US stock market expert Koch: “No all-clear on inflation in the USA”

Individual values ​​in focus:

Crazy Chicken: The announcement of a special dividend and a share buyback gives El Pollo Loco the biggest price jump in two and a half years. Shares of the restaurant chain are up nearly 18 percent on Wall Street to a four-month high of $10.70. The company plans to pay out $1.50 a share to its owners and buy back $20 million of its own stock. This shows the management’s confidence in the business development, comments analyst Andy Barish from the investment bank Jefferies.

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Modern: Thanks to the planned joint development and marketing of a cancer vaccine with Merck & Co, Moderna shares are expecting the biggest daily gain in about eleven months. The biotech company’s stocks are up a good 17 percent on Wall Street. According to the information provided, the company will receive a down payment of 250 million dollars from the pharmaceutical company.

Pepsi: Pepsi was one of the winners on the US stock market with a price increase of four percent. Thanks to robust demand and price increases, the provider of beverages and snacks is aiming for an increase in sales of twelve percent instead of the previous ten percent. Earnings are expected to be $6.73 instead of $6.63 per share. Pepsi also exceeded the increased expectations with the quarterly result, praised analyst Kevin Grundy from the investment bank Jefferies. On this basis, the targets for 2022 appeared conservative.

Uber, Lyft: Speculations that the bogus self-employment law will be relaxed or prevented are buoying Uber and Lyft. The shares of the two ride-hailing service providers rose by up to 6.8 percent on Wall Street. Lobby groups are criticizing a new law that makes it harder for these and other companies to hire drivers as self-employed. Experts expect a year-long legal battle.

More: Bet on falling prices – These five funds achieve high returns despite the crisis

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