Chinese e-commerce giant Alibaba lost 8.5 percent in market value at the opening of the stock exchanges on Wall Street on Thursday. Investors in New York were shocked by the company’s trading update.
Alibaba struggled, among other things, with corona outbreaks and more competition. The increased regulations from the Chinese government also hindered the company. On the other hand, figure updates from retailers Kohl’s and Macy’s were well received.
Macy’s was up 4.4 percent in early trading. The company has outperformed expectations in recent months and raised its expectations for the full year. Macy’s also managed to attract many new customers. Kohl’s, in turn, advanced nearly 9 percent. Kohl’s is also more optimistic about its performance this year, helped by higher sales from stores that have been open for more than a year.
In addition to Alibaba, industry partner JD.com also came up with figures. The New York-listed Chinese online store won 7 percent. JD.com noticed a growing demand for online shopping. On the other hand, network equipment seller Cisco Systems lost 8 percent due to a disappointing outlook.
The opposite was true for chip group Nvidia (plus 9 percent) that got investors’ hands together with its trading update. So did lingerie maker Victoria’s Secret (plus 10.6 percent). It was the lingerie brand’s first publication of figures as a standalone company. Finally, pharmaceutical Pfizer won 1.3 percent. The US has ordered $5.3 billion worth of Covid pills from the company under certain conditions.
The Dow Jones Industrial Average fell 0.1 percent to 35,892 points. The S&P 500 was up 0.2 percent to 4,696 points. Tech gauge Nasdaq won 0.2 percent to 15,954 points. Investors reacted, among other things, to figures about the number of new unemployment benefits. They were large as expected.
Markets are also still awaiting President Joe Biden’s decision to appoint the chairman of the Federal Reserve, the umbrella organization of US central banks. Current Fed Chair Jerome Powell’s term ends in February, and he may be allowed to run for a second term. Fed director Lael Brainard is also seen as a contender. According to experts, a choice for Brainard could mean that the Fed becomes even more cautious about raising interest rates.