The recovery on the New York stock exchanges continued at the beginning of the week. Investors are looking forward to the forthcoming release of US consumer price data with confidence. There is optimism that no new inflation peaks will be reported this time. Among other things, the shares of the pharmaceutical company Bristol Myers Squibb are in demand.
For the fourth day in a row, the US stock markets went up on Monday. The Dow Jones index rose by 0.7 percent to 32,381 points. The S
Support also came from the dollar, which weakened again somewhat, as this is favorable for the US export industry. The dollar index fell 0.6 percent. The euro has meanwhile risen to almost $1.0200, its highest level since mid-August. It last traded at $1.0115 and held above parity. On the one hand, the US currency suffered from the increased willingness to take risks, but also from the fact that the US Federal Reserve and the ECB are now taking decisive action to combat high inflation with sharp interest rate hikes.
Yields on the bond market rose somewhat over the course of the year. The price of gold (0.5%) benefited from the weaker dollar on the one hand and suffered from the rise in market interest rates on the other.
Oil prices (up 1.3%) continued to rise, in part because the weaker dollar made oil cheaper for non-dollar buyers. In addition, reference was made to the dwindling prospects for an agreement in the nuclear deal with Iran, which would then mean that no additional oil would come onto the market.
Advance praise for inflation data
Investors focused on US consumer prices for August, which will be released on Tuesday. Optimism prevailed in the run-up: Economists are expecting and market participants are betting that they will show a slight decline compared to the previous month and that this trend will continue for the rest of the year, especially since energy prices have recently been trending downwards. That would support speculation that US inflation has peaked. As a result, the US central bankers could then sound a little less hawkish.
Nonetheless, another sharp rate hike of 75 basis points is expected at the Fed meeting next week. The financial markets have meanwhile come to terms with this, especially as US Federal Reserve President Jerome Powell left no doubts about the rate hike.
Whether the stock market is in a bear market recovery or has started a sustained recovery is one of the most difficult tasks, said portfolio manager Tom Plumb of Plumb Balanced Fund: "We believe that there is a reasonable probability that the market has started a recovery."
Admission drives Bristol Myers
Among individual stocks, Bristol Myers Squibb gained 3.1 percent. The pharmaceutical company has won domestic approval for its psoriasis drug Sotyktu, the first treatment innovation for psoriasis in a decade, according to Bristol Myers. Because the drug competes with Amgen's Otezla, Amgen fell 4.1 percent. In addition, they suffered from new data from the lung cancer drug Lumakras, which did not bring any progress for the probability of survival.
The industrial group General Electric ( 1.7%) is making progress with the separation of its medical technology business. The area is to be split off in the first week of January 2023.
Walt Disney advanced 1.1 percent. Activist investor Dan Loeb has made a U-turn at Disney and no longer wants to press the entertainment company to spin off its popular sports TV network ESPN.
In the legal dispute with Elon Musk, Twitter (-1.8%) has rejected the billionaire's recent allegations as "unjustified" and is sticking to the merger agreement. On Friday, Musk's lawyer said a payment of about $7 million by Twitter to a whistleblower gave Musk more ammunition to end the agreement.
Oracle gain 1.5 percent in the run-up to the presentation of the business figures after the end of trading.
