On the 23rd (local time), the major indexes of the New York Stock Exchange closed mixed. International oil prices rose again despite the US decision to release its oil reserves.
The leading index, the S&P 500, finished trading at 4,690.70, up 0.17% from the previous day, the Nasdaq at 15,775.14, down 0.50%, and the Dow, up 0.55% at 35,813.80, respectively.
The day before, fears of an early interest rate hike had subsided following the re-appointment of Federal Reserve Chairman Jerome Powell. The Nasdaq fell as yields on 10-year Treasury bonds rose again, but stocks of many companies in the S&P 500 rose.
Companies’ third-quarter results have largely beat market expectations.
While earnings per share (EPS) and sales of Zoom, Best Buy and Dollar Tree exceeded market expectations, stock prices were mixed.
Shares of Zoom and Best Buy plunged on the grounds that their earnings outlook was uncertain, while Dollar Tree shares soared. Dollar Tree announced on the same day that it would abandon the existing one-dollar policy and raise the price of all goods to more than $1.25.
After the market close, Gap and Nordstrom also reported third-quarter earnings, both of which fell sharply in after-hours trading. Shares of department store chain Nordstrom fell more than 20%. That’s because both companies reported better-than-expected third-quarter EPS.
Analysts say that some retailers are feeling limited in absorbing the shock as supply and inflation issues prolong.
On the New York Mercantile Exchange on the same day, the price of West Texas Intermediate (WTI) for January contract closed at $78.77 per barrel, up more than 2.6% from the previous day.
Even though South Korea, China, Japan, India and the UK participated in the release of oil stockpiles led by the US, oil prices rose further. This is because the prevailing observation is that demand far exceeds supply. The market forecast is that the six countries will release a total of 65 to 70 million barrels of oil from this oil reserve. The global economy’s demand for crude oil in the fourth quarter of this year is about 100 million barrels per day.
“The United States has decided to release 50 million barrels of its strategic reserve oil, the largest ever,” said President Joe Biden at an emergency press conference. I did.
photo = REUTERS
Today’s ‘Global Market Now’ issues are as follows.
① Markets that have digested concerns about interest rate hikes ② Dollar Tree that has raised prices by 25% ③ The story of oil prices rising even after jointly releasing oil stockpiles ④ Turkey is running the opposite way amid soaring prices.
More details can be found on Hankyung Global Market YouTube and Hankyung.com broadcasts.
New York = Correspondent Jo Jae-gil road@hankyung.com
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