Wall Street investors are back in the buying mood – chipmaker stocks are favorites

Wall Street investors are back in the buying mood – chipmaker stocks are favorites

Wall Street investors are back in the buying mood - chipmaker stocks are favorites
Further restrictions are imminent due to the omicron variant of the corona virus.  Source: Reuters

Investors are returning to Wall Street encouraged by strong corporate balance sheets. The leading indices Dow Jones, Nasdaq and S&P 500 rose by almost one percent each when they opened on Tuesday.

But that was only a reaction to the price losses at the beginning of the week and not the start of a new rally, said stock trader Dennis Dick from the brokerage firm Bright Trading. “There are just too many worries.” One of them is the rapid spread of the omicron variant of the coronavirus, which numerous countries are tightening their pandemic restrictions to combat. The restrictions would certainly not reach the same extent as the lockdowns of the past few months, said Naeem Aslam, chief market analyst at the brokerage house AvaTrade.

Nike was one of the favorites on the US stock market with a price increase of almost nine percent after the sporting goods manufacturer had presented surprisingly strong quarterly results. Quarterly earnings were 83 cents per share, 20 cents above estimates. “The results illustrate that the brand is stronger than ever,” wrote analyst Randal Konik of the investment bank Jefferies. In the slipstream of rival Under Armor’s titles won 2.4 percent.

Micron papers gained 9.5 percent. “We and many investors had expected a quarterly result above market expectations,” commented analyst Karl Ackerman from Cowen. On the other hand, it comes as a surprise that the outlook is higher. Against this background, other chip manufacturers such as AMD, Broadcom, Nvidia or Qualcomm advanced by up to three percent.

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In its first quarterly report since going public in mid-November, the cloud-based software company reported a lower-than-expected loss and better-than-expected sales. The share rose 7.4 percent.

The shares rose more than 13 percent. Because the news agency Bloomberg had reported that Elliott Investment Management and Vista Equity Partners are considering a joint takeover offer for the software manufacturer.

The drugstore chain posted earnings of 15 cents a share, compared to expectations of a quarterly loss of 32 cents a share. Rite Aid also announced a store closure program that will initially see 63 stores with expected annual savings of approximately $ 25 million. The share gained 14 percent.

CEO Stephane Bancel told a Swiss newspaper that work on a booster to protect against the Covid-19 Omicron variant could begin within a few weeks. Only minor adjustments are required. Moderna said earlier this week that a booster dose of the current vaccine increases protection against the Omicron variant by 37 times. The share fell by more than six percent.

The electric vehicle maker will pay a $ 125 million civil fine to try to address allegations by the Securities and Exchange Commission (SEC) that the company was alleged to have defrauded investors. According to Nikola, all open questions and investigations have been clarified with the comparison. The company’s shares fell one percent.

The shares of the solar system manufacturer rose by 5.9 percent. The analysis house Cowen called the paper a “top pick”.