Volatile Wall Street ends in green

(ABM FN-Dow Jones) Wall Street closed in the green on Monday after a choppy session. The Standard & Poor’s 500 index eventually rose 0.3 percent to close at 4,410.13 points, and the Nasdaq index closed up 0.6 percent at 13,855.13 points. The Dow closed 0.3 percent in plus at 34,364.50 points.

In doing so, the indices recovered from heavy losses earlier in the day, as the Dow Jones fell by about 1,100 points.

According to market analyst Naim Aslam of AvaTrade, it’s a crucial week for stock markets, partly because of the Federal Reserve’s interest rate decision that was put on the agenda on Wednesday, and also because of the company numbers for big tech companies like Apple, Microsoft and Tesla.

Market experts are counting on the Fed to definitely prepare the market for a rate hike in March. Investors expect interest rates to rise four times this year. However, Goldman Sachs economists do not rule out raising rates at any policy meeting in 2022, if inflation rises further.

Geopolitical tensions also play a role in sentiment. Concerns about Russia’s invasion of Ukraine are mounting as the US State Department calls on the families of embassy officials to leave the country. Meanwhile, the White House is considering sending troops to Europe.

According to macro strategist Sebastian Galle of Nordea Asset Management, markets can react unexpectedly to a military conflict and its possible consequences.

Macroeconomic news failed to encourage investors on Monday. The Chicago Fed’s National Activity Index fell below zero in December. The index fell from a position of 0.44 in November to a negative 0.15 in December.

Moreover, economic activity in the US manufacturing and services sector declined in January. The composite index came in at 50.8 compared to 57.0 in December. Thus, the index is also at its lowest level in eighteen months.

“The sharp increase in coronavirus cases nearly brought the US economy to a standstill at the start of the year,” Markit economist Chris Williamson said, noting further disruptions to the supply chain.

The price of West Texas Intermediate crude closed down 2 percent on Monday. EUR/USD is trading at 1.1323, near the close.

company news

Halliburton returned to profit in the fourth quarter with sales growth in North America and internationally. The oil service provider is also positive by 2022 and counts on accelerating cash flow and a stronger balance sheet. The stock rose about 4 percent.

Kohl’s stock rose about 36 percent after reports of bids from two interested parties. According to the Wall Street Journal, hedge fund Starboard Value wants to pay $9 billion with a consortium.

An activist investor is calling for Peloton to sack its CEO. The sport bike maker’s share is down 80 percent, while Blackwells Capital has less than 5 percent, CEO John Foley says. Sources say the company should be sold. Peloton closed about 10 percent higher.

IBM slipped slightly in the run-up to the quarterly numbers, on Monday after hours.

Pron: ABM Financial News

From Beursplein 5, Editors ABM Financial News Keep a close eye on developments on the stock exchanges, and the Amsterdam Stock Exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.