14-month high for Nasdaq and S&P
US markets close with strong gains
06/15/2023, 11:05 p.m
Pleasing figures from the US markets as well. The Dow Jones is rising sharply, the Nasdaq and S&P500 are even setting new records. Impetus is coming from China of all places, whose latest economic data has been disappointing. Citigroup disappointed.
Wall Street posted strong gains on Thursday. The Dow Jonesindex rose by 1.3 percent to 34,408 points. The S&P 500 increased by 1.2 percent and for the Nasdaq-Composite was up 1.1 percent. The 2,192 winners at the Nyse faced 791 losers. S&P 500, like Nasdaq Composite, hit fresh 14-month highs.
The market thus coped well with the more hawkish interest rate projections of the central banks on both sides of the Atlantic. This could also be due to the fact that the Chinese central bank is currently fighting the economic downturn with interest rate cuts, it said in the trade. Other important interest rates are likely to be reduced shortly, and market participants are speculating on a comprehensive economic stimulus package.
There were also some positive surprises in the US economic data. Retail sales increased in May when a decline had been expected. Import prices were also slightly below the forecast. But longer-term developments were also mentioned. Artificial intelligence is bringing a new fantasy to the market, which is now coming into focus after the interest rate decisions. Jefferies recently published a comprehensive study on the cross-industry productivity gains through AI.
Euro offsets dollar boost
The forex market fell dollar significantly, the dollar index fell by 0.8 percent after rising the previous evening on the Fed’s statements. Now this movement has been thwarted because the interest rate signals from the ECB Euro fueled. The shared currency climbed to around $1.0950.
oil became more expensive with speculation on a boost in demand from China. The People’s Republic is the second largest consumer in the world. China’s rate cuts to date have fueled expectations that there may be more – including a comprehensive stimulus package.
Lennar and Truecar stuck
The share of Citigroup underperformed the market with a premium of 0.6 percent. According to CFO Mark Mason, the bank’s revenue fell 20 percent in the second quarter. However, the outlook for the year was confirmed.
Goldman Sachs reduced higher profits over the course of the year and only increased by 0.4 percent. The Fed and SEC are investigating Goldman Sachs’ role in the takeover of Silicon Valley Bank.
The course of the construction company lennar increased by 4.4 percent. The company exceeded market expectations for revenue and adjusted earnings in the second fiscal quarter. In addition, the annual forecast for the handover of houses was raised.
Truecar advanced 7.1 percent. The auto portal for new and used car buyers wants to lay off about 24 percent of the employees as part of a restructuring, which will reduce costs by more than 20 million dollars. ammo rose 15.7 percent, although the ammunition maker posted a loss after a sharp drop in sales in the fiscal fourth quarter. However, the market gave a positive assessment of the fact that inventories were reduced and the cost of sales was significantly reduced. Current liabilities were also reduced from the prior year while cash increased