2023-05-16 20:23:00
Plus weak retail data
Hopeless debt dispute weighs on US stock exchanges
05/16/2023 10:23 p.m
The mood on Wall Street could be better: Above all, the debt dispute between Democrats and Republicans and the latest economic data are slowing down investors on the US stock exchanges.
An unexpectedly sluggish US retail recovery has dampened investor sentiment on the New York Stock Exchange. The Dow-Jones-Index fell by 1.0 percent to 33,012 points and thus closed practically at the daily low. The S&P-500 lost 0.6 percent (4109.9 points). The NasdaqIndices, on the other hand, showed little change, slightly in the red or just slightly in the plus.
According to data from the Department of Commerce, retail sales increased in April, but the increase was only half as strong as expected. “This confirms what we’ve seen from Home Depot,” said Jamie Cox, partner at financial services provider Harris Financial Group. “We’re probably seeing the end of the decline in retail sales, but there are tough times ahead.”
The latest economic data pointed to a slowdown in the US economy – raising hopes that the US Federal Reserve will pause in its interest rate hikes. However, Cleveland Fed Chair Loretta Mester tempered expectations: She doesn’t think the Fed has gotten to a point where it can keep interest rates stable for a while.
The ongoing dispute over raising the debt ceiling also weighed on the mood. During the day, Republicans should meet with representatives of the US President’s Office to find a solution to the dispute. Stockbrokers, however, dampened expectations. “There is little chance that we will see a solution to this issue today,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
In the case of the individual values Home Depot 2.1 percent and at times marked the lowest level for six months. The hardware store chain lowered its sales forecast. During the pandemic, the industry had experienced a boom because many people had cleaned up their homes due to a lack of alternatives. But now the money is better spent on travel. The rival’s papers Lowe’s fell 1.1 percent. The shares of the biotech company Horizon Therapeutics lost 14 percent. According to an insider, the US antitrust authority FTC wants to prevent the takeover of the company by the US pharmaceutical company Amgen.
On the other hand, it went up by 2.1 percent Capital One. Warren Buffett’s holding company Berkshire Hathaway is investing nearly $1 billion in the credit card bank. Morgan Stanley analysts believe the recent sell-off in US regional banks has now come to an end. On the Frankfurt Stock Exchange he went DAX slightly weaker at 15,898 points from the trade.
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