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NEW YORK (Dow Jones) – The US stock exchanges start trading on Friday with a clear plus. The recovery initiated on Thursday continues after the recent heavy losses triggered by fears of inflation and interest rate hikes following the surprisingly sharp rise in consumer prices.
Shortly after the start of trading, the Dow Jones Index is 0.5 percent up at 34,185 points. The S&P 500 gains 0.8 percent and the Nasdaq Composite 1.2 percent.
Federal Reserve officials have tried to limit the damage and have repeatedly assured that it is not yet time that Monetary policy to tighten because the current rise in inflation is likely to be temporary. This is helping to reassure investors, as is the fact that yields on the US bond market have fallen slightly again. The ten-year return is currently 1.65 percent, after the weekly high on Wednesday was a good 1.70 percent.
Economic data provide positive impetus. Retail sales disappointed with stagnation on a monthly basis in April. Economists had expected an increase of 0.8 percent. On the one hand, the data can be interpreted as a negative omen for private consumption, which accounts for around two-thirds of US economic output. On the other hand, they argue against tightening monetary policy anytime soon, which in turn is welcomed with relief. Meanwhile, import prices rose a little more than forecast last month, but industrial production was a little weaker than expected. Shortly after the start of trading, the Uni-Michigan index for consumer sentiment (first survey for May) and inventories from March will follow.
Disney disappoints with losses of its parks
Disney lost 4.0 percent of the individual values. While revenue from theme parks was more than twice as strong as expected, the streaming service Disney + fell short of expectations.
Airbnb (hardly changed) did better than expected in the first quarter, but is struggling to meet demand as hosts are increasingly reluctant to offer their rooms through Airbnb.
Coinbase Global (+ 3.3%) are benefiting from the profit jump that the trading platform for cryptocurrencies posted in the first quarter.
Dogecoin cryptocurrency is booming with Musk statements
On the foreign exchange market, the euro gained ground against the US currency and rose above 1.21 dollars. Commerzbank analyst Ulrich Leuchtmann looks ahead if the economic data due in the USA on Friday are even more clearly below the strong previous month’s values than expected anyway, that would confirm his impression that the euro should be priced higher against the dollar. Because then the image of a US central bank that waits a long time despite inflation will solidify.
Meanwhile, the price of the Dogecoin cryptocurrency jumps by almost 30 percent to $ 0.5312. The Coinbase trading platform will soon also enable trading with Dogecoin, which was originally created as a spa crypto currency. It also has Tesla CEO Elon Musk, who recently criticized Bitcoin’s high energy consumption, announced late Thursday that he was working with the Dogecoin developers with the aim of making transactions more efficient.
Meanwhile, oil prices are recovering somewhat from recent losses. Support comes from the weaker dollar. Gold is also increasing. The precious metal, which is held free of interest, should also benefit from the renewed decline in bond yields.
INDEX last +/-% absolute +/-% YTD
DJIA 34,184.85 0.48 163.40 11.69
S&P 500 4,143.61 0.76 31.11 10.32
Nasdaq Comp. 13,275.56 1.15 150.57 3.00
Nasdaq-100 13,255.49 1.12 146.34 2.85
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.15 -0.4 0.15 3.2
5 years 0.81 -1.8 0.83 45.2
7 years 1.28 -2.5 1.30 63.0
10 years 1.63 -2.5 1.66 71.5
30 years 2.36 -3.8 2.40 71.0
Forex last +/-% Fri, 7:50 am, 5:40 pm% YTD
EUR / USD 1.2133 + 0.42% 1.2096 1.2071 -0.7%
EUR / JPY 132.63 + 0.30% 132.46 132.29 + 5.2%
EUR / CHF 1.0957 + 0.16% 1.0943 1.0946 + 1.4%
EUR / GBP 0.8609 + 0.12% 0.8606 0.8602 -3.6%
USD / JPY 109.31 -0.12% 109.52 109.59 + 5.8%
GBP / USD 1.4093 + 0.30% 1.4054 1.4032 + 3.1%
USD / CNH (offshore) 6.4381 -0.16% 6.4405 6.4509 -1.0%
BTC / USD 50,634.26 + 2.10% 49,676.26 50,025.50 + 74.3%
ROHOEL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 64.72 63.82 + 1.4% 0.90 + 33.1%
Brent / ICE 68.07 67.05 + 1.5% 1.02 + 32.4%
METALS last previous day +/-% +/- USD% YTD
Gold (spot) 1,837.95 1,827.00 + 0.6% + 10.95 -3.2%
Silver (spot) 27.32 27.08 + 0.9% +0.25 + 3.5%
Platinum (spot) 1,227.93 1,210.33 + 1.5% + 17.60 + 14.7%
Copper future 4.67 4.71 -0.9% -0.04 + 32.4%
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DJG / DJN / cln / raz
(END) Dow Jones Newswires
May 14, 2021 09:44 ET (13:44 GMT)