Mixed US jobs data has led to sell-off on Wall Street. Thanks to rising rising wages, investors now fear interest rate hikes.
New York Investors seek direction after conflicting US jobs data. The US standard value index Dow Jones closed on Friday with little change at 36,231 points. The technology-heavy Nasdaq, on the other hand, fell by around one percent to 14,935 points. The broad S&P 500 fell 0.4 percent to 4677 points. Non-farm payrolls in December surprisingly fell to 199,000 from 210,000 in the previous month. Analysts had expected double the increase. Nevertheless, the unemployment rate fell surprisingly sharply. At the same time, wages increased by 0.6 percent instead of the expected 0.4 percent. “A messy, confusing jobs report,” commented Neil Wilson, chief analyst at online brokerage Markets.com. The question arises as to whether more jobs were created than reported or whether the figures indicated a shortage of workers. “A bit of both, but there are clear signs of a wage-price spiral that cannot be ignored.” For this reason, investors are now speculating that the central bank Fed will raise the key interest rate four times in the current year instead of three times as previously expected, said Steven Ricchiuto, chief economist for the USA at the investment bank Mizhuo. In response, they sold government bonds. That pushed the 10-year Treasury yield to a two-year high of +1.801 percent.
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Oil price continues to rise – Bitcoin again in the red The job data put a temporary end to the rise in oil prices. The US variety WTI fell almost one percent to $78.96 per barrel (159 liters). However, a resumption of the rally is likely, said analyst Louise Dickson from brokerage house Rystad. The reason for this is production losses due to the unrest in Kazakhstan and supply bottlenecks in Libya due to maintenance work on a pipeline. In addition, the fear of a drop in demand due to the rapid spread of the omicron variant of the corona virus has given way, analyst Ricardo Evangelista from the brokerage house ActivTrades interjected. Bitcoin was also down, losing 3 percent to $41,881. The oldest and most important cyber currency is now behaving similarly to other risky asset classes, said Naeem Aslam, chief market analyst at brokerage house AvaTrade. If these give way, Bitcoin will also come under pressure and vice versa.
View more individual values Game Stop: GameStop caused a stir with a price jump of up to 22 percent at times. The video game retailer is building a trading platform for so-called Non-Fungible Tokens (NFTs). These are proofs of authenticity and ownership for digital objects such as images, pieces of music or real estate in virtual worlds, which then become collectibles. NFTs have achieved millions at auction in recent months. Sonos: Shares in the speaker maker rose 0.2 percent. The International Trade Commission had ruled that Google infringed some of Sonos’ audio patents with its Nest speakers. In the future, the Internet company will no longer be allowed to import telephones, laptops and loudspeakers that are manufactured overseas. Google plans to appeal the decision.Draft Kings: Shares of the sportsbook gained 4.3 percent in the run-up to the launch of legal mobile sports betting in upstate New York on Saturday morning. Trade Desk: Ad technology provider has been upgraded to ‘Buy’ from ‘Hold’ by analytics house Jefferies. One of the reasons was a new partnership with Walmart. The stock gained more than 2 percent. New York Times: The $550 million purchase of sports website The Athletic caused the New York Times to plummet. The newspaper publisher’s shares fell by almost eleven percent. In the long term, the takeover makes sense, write the analysts at brokerage house Guggenheim. However, the price is high and so are the necessary investments. T Mobile: For the papers from T-Mobile, on the other hand, it went down a good five percent. The US subsidiary of Deutsche Telekom added 844,000 new customers in the fourth quarter, fewer than hoped for. Absci: One of the favorites among the second-line stocks, which was much more in demand, was the Absci Corporation share certificate. It increased by 17.1 percent and benefited from a research cooperation between the biotech company and the large pharmaceutical company Merck & Co.. Merck also increased by 1.9 percent.Discovery: The shares of the media company Discovery also fell by almost 17 percent in view of a buy recommendation by Bank of America up. Starbucks, Kohl’s, Abercrombie Fitch: Also the papers of the coffee house chainStarbucks, retailer Kohl’s and apparel company Abercrombie Fitch were moved by analyst comments . Kohl’s fell 1.7 percent and Starbucks and Abercrombie each fell just over 3 percent. The Canadian bank RBC gave up its buy recommendation for Starbucks and lowered the stock to “Sector Perform” because opportunities and risks are now balanced. Kohl’s is operated by UBS now recommended for sale and Abercrombie has been downgraded to Neutral.More: These stocks will continue to rise in 2022
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