ROUNDUP / Stocks New York Close: Stock exchanges with great momentum | News

NEW YORK (dpa-AFX) – US stock markets returned to success on Tuesday. The risk appetite of investors weakened earlier this week, but has now returned vigorously. This was reflected in parallel with the weak US dollar, which has recently served as a safe haven for investors. Investors also dared to hear rumors about the restart of the Nord Stream 1 gas pipeline to Europe.

The leading Dow Jones Industrial index (Dow Jones 30 Industrial) steadily increased its profits. He crossed the finish line by 2.43 percent. higher, with the result of 31,827.05 points, and thus was close to the daily maximum. The market-wide S&P 500 index climbed 2.76 percent to 3,936.69 points. Loaded with NASDAQ 100 technology, it rose by as much as 3.13 percent to 12,249.42 points – and thus returned vigorously above 12,000 points.

Rather weak data of companies only inhibited the willingness to buy individual stocks, such as IBM, but did not slow down the entire market. According to stockbrokers, many negative things have already been priced in recently, and bolder investors will now be looking for bargains. They also became more risk-averse as speculation about reactivating the pipeline eased fears of a global energy crisis.

With prices down 5.3 percent, IBM was the biggest of just two losers at the Dow. Experts drew positive conclusions from the IT giant’s second quarter, but criticized the lowered cash flow target and outlook for the third quarter. This was well below consensus, according to Bank of America analyst Wamsi Mohan.

Johnson & Johnson (JohnsonJohnson) became Dow’s second weak stock, dropping 1.5%. The consumer goods and pharmaceuticals group lowered their annual targets for the second time due to the strong US dollar. Quarterly data, which were indeed assessed as robust, also did not have a positive impact.

Boeing’s investors, on the other hand, saw strong gains, with share rising 5.7 percent at the Dow Summit. The aircraft manufacturer is currently scoring points with aircraft orders at the Farnborough air show in the UK – concluding that the Americans are ahead of their European competitor Airbus (Airbus SE (ex EADS)) on the second day of the show.

Demand for some stocks in the US auto sector was strong: Ford (Ford Motor) and General Motors (GM) gained more than five percent, while shares in the US auto sector electric car– Tesla specialists increased by only two percent. It turned out that GM wants to release an electric version of the Chevrolet Blazer next year and thus compete with the Model Y Tesla.

Novavax shares rose 11.6% on the Nasdaq. The Covid-19 vaccine, which was recently approved for emergency use, has now received the support of the US advisory panel. This is considered an important step in providing another anti-virus tool in the US at a time when the number of infections is rising again.

Match Group, which focuses on dating services, was also among the top Nasdaq winners with an 8.2 percent up. Many analysts, including Bank of America’s Nat Schindler, positively commented on the firm’s outlook on Tuesday. He believes stocks will continue to show strength even in a downturn. The expert emphasized that he had the impression that growth was just beginning.

The growing propensity to take risks was visible in all financial markets. Contrary to the previous one, the euro rose, fueled by speculation that the ECB may announce a stronger rate hike than previously priced in on Thursday. With the last payment of EUR 1.0225, the price clearly returned above the level of USD 1.02. The European Central Bank (ECB) set the reference rate at USD 1.0245 (Monday: 1.0131).

Investors also increasingly turned their backs on US bonds, which were seen as the retreat. The Treasury’s 10-year futures contract fell by 0.42 percent. to 117.97 points. In return, the yield on ten-year government bonds rose to 3.02 percent.

— Author: Timo Hausdorf, dpa-AFX —

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