indexes in this article
NEW YORK (dpa-AFX) – After a strong previous day, the desire to buy on the American stock exchange did not last long on Thursday. The tech-laden and rate-sensitive NASDAQ 100 index, which rose particularly sharply in the middle of the week, benefiting from easing inflationary pressures, lost 0.65 percent to 13,291.99 points this time. The leading Dow Jones Industrial index (Dow Jones 30 Industrial) closed slightly up 0.08 percent to 33,336.67 points. The market-wide S&P 500 index recorded minus 0.07 percent. to 4207.27 points.
Due to the recent surge in the stock market, all three indices have recently reached their early May price levels. Only the NASDAQ 100 has already recovered a good 20 percent from the June low. The increase may have gone a bit too far, the market said.
On Thursday, slightly lower inflationary pressure in the United States only supported prices initially. Economic data on that day showed that CPI inflation also weakened more than expected in July.
The latest inflation data send an encouraging signal towards a soft landing scenario for the US economy, wrote UBS Wealth Management investment strategist Mark Haefele. Investors should exercise caution, however, he advised. It is still not entirely clear in what direction the economy will develop and what the position of the US Federal Reserve will be then. The time for clear market positioning has not come yet.
Fed officials also said, in response to yesterday’s consumer price data, that the central bank is aiming for higher interest rates this and next year. The Fed was last with one at the end of July rate hike by 0.75 percentage points against high inflation. Inflation remains “unacceptably high,” said Chicago Federal Reserve Bank president Charles Evans.
Amidst individual values, the Walt Disney stock increased its profit from the previous day. The entertainment giant has now caught up with long-time market leader Netflix with its streaming offering. The money for the entertainment empire, meanwhile, earned the classic business with cable television, film studios, theme parks, resorts, and cruise ships in the third economic quarter. Overall, Disney’s adjusted earnings per share exceeded market expectations. Disney stocks topped the Dow again, gaining a further 4.7 percent. Netflix shares fell 0.6 percent.
Investors in speaker supplier Sonos had to deal with a price drop of about a quarter. The group sees such a bad environment for its business that it puts off the launch of a new product until later. Sonos has been seeing a slowdown in demand in its companies since June, CEO Patrick Spence said in a conference call with analysts. He attributed this in part to consumers spending their money on services and travel, not on goods.
The online dating platform Bumble fell short of market expectations in its sales forecasts for the third fiscal quarter. Newspapers fell 8.6 percent.
Health actions are lagging behind. For example, Johnson & Johnson (JohnsonJohnson) lost 2.1 percent at the end of the Dow index. Pfizer fell 3.3 percent. in the S&P 500 index. Market participants have also linked Pfizer’s losses to ongoing product liability lawsuits related to the recalled Zantac drug. This has already hit the Sanofi and GlaxoSmithKline (GSK) shares in European trading hard.
The consequences for Pfizer should be manageable, according to JPMorgan analyst Chris Schott. Zantac was once a popular drug used to suppress stomach acid production for heartburn. In the US, plaintiffs have been claiming for some time that the drug allegedly caused them cancer. Schott noted that in the past 25 years, several companies, including Boehringer, Sanofi and Pfizer, had over-the-counter rights in the US for a drug introduced by GSK in the early 1980s.
In US trade, the euro remained above USD 1.03. After the close of the New York Stock Exchange, the single currency was traded at USD 1.0324. In European morning trade, the euro dropped below USD 1.03, but then rose to USD 1.0364. The European Central Bank (ECB) set the reference rate at USD 1.0338 (Wednesday: 1.0252), the dollar thus cost 0.9673 (0.9754) euro.
US Treasuries abandoned their early trading gains and recorded losses. The 10-year T-Note Future contract has recently dropped by 0.59 percent. to 119.05 points. The yield on ten-year government bonds amounted to 2.89% /ajx/he
— Author: Achim Jungling, dpa-AFX —