Business figures give Wall Street a boost at the start of the new trading week. But then investors lose courage: the corona situation in the USA is a reason that leads to profit taking.
On Wall Street, investors have run out of courage in their late business. The ever new record numbers of new infections in the USA were taken as an opportunity to take profits. Because the signals intensified that reopening plans in US states like California are postponed because of the corona virus pandemic. An increase in tensions between the United States and China due to the Hong Kong crisis also depressed the previously extremely optimistic mood. Because the courses had almost reached their pre-crisis level again. The Nasdaq had already left this behind with new all-time highs. At this elevated level, investors were literally looking for reasons to take profits, it said.
Of the Dow Jones-Index saved an increase of 11 points to 26,086, S&P 500 and Nasdaq composite fell by 0.9 and 2.2 percent respectively. The technology-heavy index has now pushed the all-time high to 10,825 points. "The pandemic has accelerated and advanced many existing trends," said Franklin Templeton's equity strategist Stephen Dover, referring to the technology sector. But after he led the rally initially, the sector posted the sharpest turn in minus in three months in late business. Of the Dax went out of business with profits.
Pfizer and Pepsico climb
One reason for the daily gains initially posted was the increased hope of a vaccine against Covid-19 being available soon. The FDA is reviewing the accelerated approval of a vaccine from the pharmaceutical company Pfizer and the German biotechnology company Biontech. Pfizer rose 4.0 percent and the Nasdaq-listed Biontech rose 10.5 percent. "I don't think we're out of it. Even if we get a vaccine, it will take a while," said Amundi Pioneer's equity strategist John Carey. He doubted the widespread assumption that immunity to the pandemic would be forthcoming.
Pepsico rose 0.3 percent. The beverage company had reported sales and earnings figures for the second quarter that had fallen less than initially feared. While the company hasn't provided an annual forecast given the uncertainties surrounding the coronavirus pandemic, it plans to send shareholders $ 7.5 billion in dividends and share buybacks.
A possible merger caused price movements in the semiconductor sector. Analog Devices is in talks to acquire Maxim Integrated for around $ 20 billion. Analogously, 5.8 percent lost, Maxim bullded 8.1 percent. Title of restaurant operator Darden Restaurants rose 1.1 percent after an upgrade by JP Morgan.
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