Dow Jones closes in positive territory
Stockbrokers hope for an end to inflation
05/27/2022, 10:20 p.m
Is US inflation now peaking? In any case, economic data make investors optimistic, which is why they grab it. And the new film “Top Gun: Maverick” with Tom Cruise is making cinema operator prices skyrocket.
A long weekend ago, US investors boldly grabbed stocks. Positive economic data fueled hopes that US inflation might have passed its peak. With that, the major indices were on course to put their respective streaks of weekly losses behind. Of the Dow Jones gained 1.76 percent to 33,213 points. The tech-heavy one Nasdaq advanced 3.33 percent to 12,131 points and the broad S&P 500 increased 2.47 percent to 4158 points.
There will be no trading in the US on Monday due to the Memorial Day holiday. Shortly before the stock market opened, the US Department of Commerce announced economic data for April. Accordingly, consumer spending rose by 0.9 percent compared to the previous month and thus slightly more than experts had expected. At the same time, a measure of annual inflation (core PCE rate), which the US Federal Reserve also pays much attention to, fell to 4.9 percent from the previous 5.2 percent.
“It looks like the inflation wave has peaked,” said analyst Bastian Hepperle from the private bank Hauck Aufhäuser Lampe. The strategist Brian Jacobsen from Allspring Global Investments also spoke of a “step in the right direction”. However, there will still need to be some falls in inflation to convince the Fed. However, should the trend in inflation continue, the Federal Reserve will have more leeway on interest rates later in the year, said Nationwide economist Dan Hadden.
Dell with double-digit profit
In the case of the individual values Dell 12.95 percent following a quarterly result above market expectations. Both the infrastructure and the consumer division of the PC manufacturer contributed to the impressive result, said analyst Krish Sankar from asset manager Cowen. On the other hand, the fashion company pointed out American Eagle a significant loss of minus 6.56 percent. Also Gap started trading with a drop that was temporarily -13.4 percent, but recovered to eventually post a gain of 4.32 percent.
Cinema operators were also looking forward to the long weekend. Their stocks rose significantly ahead of the US launch of the new Tom Cruise movie Top Gun: Maverick: AMC Entertainment rose 17,99 Percent, Cinemark 5.97 percent, and Imax 8.21 percent. BoxOffice Pro’s chief analyst Shawn Robbins expected $100 million in ticket sales in the US and Canada. This would be an opening record for Cruise. Critics have raved regarding the pilot drama’s sequel, which hits theaters 36 years following the classic.
