In the US, the recession is knocking at the door. Only the robust labor market is still holding them back, even though the economy is collapsing. However, the stock market traders don’t let the mood spoil. The papers from Ford in particular are very popular with them.
Despite disappointing economic data and weak corporate balance sheets, Wall Street is holding up. The US standard value index Dow Jones rose by 1.03 percent to 32,529.63 points. The broad S
The surprising decline in US economic output impacted investor sentiment. In the second quarter, it fell by 0.9 percent extrapolated for the year as a whole. “This means that the Anglo-Saxon rule of thumb for the existence of a recession has been fulfilled,” said LBBW analyst Dirk Chlench. However, since the National Bureau of Economic Research, which is responsible for determining such a situation, is looking at the continued robust labor market, the official interpretation is that it is not yet ready. But that could change quickly.
Due to the weak economic data, however, some stockbrokers saw their interpretation of the latest Fed statements confirmed that the US central bank will tighten monetary policy more cautiously in the future. “It is becoming increasingly likely that the peak pace of rate hikes is behind us,” wrote analysts at bank JP Morgan.
In terms of stock values, Meta was one of the losers, falling 5.22 percent to $160.72. The parent company of Facebook, Instagram and WhatsApp posted the first drop in sales since going public in 2012 and expressed reservations about the future prospects. In the wake of the meta price slide, the online network Pinterest lost 0.94 percent.
Qualcomm warned of revenue below market expectations for the current quarter due to flagging smartphone demand and ongoing supply chain problems. Analyst Kyle McNealy from the investment bank Jefferies wrote that the development of new business areas by semiconductor manufacturers was positive. However, it will still take years before chips for cars and other electronic devices can compensate for the weakening mobile phone business. Qualcomm bills fell 4.54 percent.
In contrast, the papers from Ford, which rose by 6.1 percent, were in demand. Despite the current problems, the carmaker is sticking to its full-year targets. In addition, the quarterly results exceeded expectations, praised analyst David Whiston from the research house Morningstar.
