Thursday, October 28, 2021
Balance sheets fuel Wall Street
US indices hit all-time highs
Bubbling corporate profits propel Wall Street prices. Nasdaq and S&P 500 close higher than ever. Tech values are in demand, but so are Ford and Caterpillar papers. A stock market debut, on the other hand, is disappointing.
After the break in the middle of the week, Wall Street saw premiums again. The technology stocks were still sought after, following the latest strong quarterly figures from Microsoft, the Google parent company Alphabet and Advanced Micro Devices (AMD). The sector had already braced itself against the slight downward trend the day before.
Also surprising weak US growth data for the third quarter did not burden. The gross domestic product (GDP) only increased by 2.0 percent. Economists, however, had forecast 2.8 percent. In the second quarter, growth was significantly higher at a revised 6.7 percent. In contrast, the data on the weekly initial jobless claims are better than expected. That the European Central Bank (ECB) as expected the Base rates as well as confirmed the interest rate and forward guidance, did not provide any impetus.
Of the Dow Jones Index improved by 0.7 percent to 35,730 points. Of the S&P 500 climbed 1.0 percent. Of the Nasdaq composite closed with an increase of 1.4 percent. The 2,290 (Wednesday: 939) price winners were compared to 1,044 (2,379) losers. 110 (140) titles closed unchanged.
Dollar falls on weak GDP data
Of the dollar came under pressure according to GDP data. The dollar index fell 0.5 percent. “The disappointing GDP data will heighten concerns about the strength of the US economy,” said Richard Flynn of Charles Schwab.
At the Bond market the yields made up some of the previous day’s losses. With the Federal Reserve expected to scale back its monthly bond purchases before the end of the year, investors have turned their attention to when the Fed will begin raising interest rates. These expectations have been moved forward in the face of higher inflation. The yield on two-year stocks rose again over the course to a 52-week high.
the Oil prices continued to fall after being under pressure the day before. Participants pointed to profit-taking after the recent seven-year highs, the weak dollar, and the recent surge in US oil stocks. The looming resumption of nuclear talks with Iran also weighed on. If an agreement is reached, more Iranian oil could enter the market and depress prices.
Of the Gold price continued to recover and in the meantime jumped over the mark of 1,800 dollars a troy ounce. Price was boosted by weak GDP data, which eased fears of a faster rise in US interest rates, said TIAA Bank’s Chris Gaffney.
Ford by numbers with a leap in course
The reporting season continued unabated. The construction machinery manufacturer Caterpillar benefited from rising demand in the third quarter. Sales increased by a quarter, and the group was able to more than double its profit and thus increase it more than expected. The share rose 4.1 percent.
The pharmaceutical company Merck & Co (+ 6.1%) exceeded market estimates in terms of both sales and profits in the third quarter. The outlook for the year as a whole was also better than expected.
The exchange operator Intercontinental Exchange (ICE) not only increased sales and profits in the third quarter of 2021, but also performed better than analysts expected. The share gained 1.9 percent.
Had already on Wednesday after close of trading Ebay and Ford business figures presented. Ebay exceeded the expectations of the analysts with the results for the third quarter, but disappointed the forecast for the fourth quarter and with it the important Christmas business. The course fell by 6.8 percent.
at ford Unsurprisingly, production stoppages due to delivery bottlenecks for semiconductors and higher raw material costs resulted in mixed results in the third quarter. However, Ford raised its outlook for the full year and wants to resume dividend payments. According to Ford, the chip shortage has also decreased. The share gained 8.7 percent.
the FacebookShare gained 1.5 percent. The US Internet giant is giving itself a new name: The online group will be called Meta in the future, as announced by CEO Mark Zuckerberg. This is intended to reflect the growth opportunities beyond the eponymous social media platform in digital online areas, the so-called metaverse.
Recorded a weak debut on the stock market Globalfoundries on the Nasdaq. The first course of the semiconductor manufacturer was at 47 dollars at the level of the issue price. The stocks eventually closed at $ 46.40. The contract manufacturer comes to a valuation of 25.1 billion dollars.