Wall Street opened up – Pandemic-era favorite Zoom fell short of expectations again

In the United States, the stock market indices opened on Tuesday with a nice rise.

Moments after the opening, the S&P 500 was up 0.5 percent, the Nasdaq was up 0.3 percent, and the Dow Jones was up 0.6 percent.

The earnings season has also quieted down on Wall Street towards the end, and investors’ reasons at the moment are mostly expectations about the direction of monetary policy and inflation.

Central bank Fed officials are making several statements this week, and so far the line has remained largely hawkish. However, some of the exits of the managers of the regional banks have been interpreted so that the pace of raising the key interest rate could slow down at the December meeting. The market considers a 50-basis-point increase in the key interest rate to be the most likely, while a few weeks earlier the market was pricing in a 75-basis-point increase.

On Wednesday, the Fed will announce the minutes of the November meeting, from which investors usually find clues about the direction of monetary policy.

At the same time, analysts have really started to lower the profit forecasts of listed companies. On Tuesday, the investment bank Morgan Stanley analysts cut profit forecasts across the board in IT sector companies.

So far, especially the growth figures provided by technology companies during the earnings season have been weak as expected.

A provider of communication services that reached a high growth rate during the pandemic Zoom reported on Monday after the market closed in its interim report that sales growth had slowed down to the slowest in the entire company’s history. Zoom cut its full-year revenue estimate.

The company’s share was down 7.1 percent in the morning stock market.

Focusing on consumer electronics and home appliances Best Buy instead, he reported a better mood than he had feared. The company instructed that sales at the end of the important year will fall less than the market had estimated, and the company’s stock was up 9.3 percent in the morning market.

Many shares of Chinese companies listed in the United States were in decline, as investors were scared of China’s return to stricter corona restrictions at the beginning of the week.

US stock markets this week have shorter trading hours than usual, as they are closed for Thanksgiving on Thursday, and on Friday they close three hours earlier than usual. During Thanksgiving week, exchange volumes are usually lower than usual.

Source: Arvopaperi by www.arvopaperi.fi.

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