Friday 10th September 2021
Court ruling weighs Apple
US indices increase losses
The risk of inflation, concerns about the further spread of the Delta variant and a court ruling against Apple are making many US investors nervous. The big indices don’t get going as a result. The downward momentum on Wall Street is thus continuing.
The lean period on Wall Street of the past few days continues. Initial premiums were not held and the downward momentum increased in late trading. The Dow and S&P 500 posted their longest losing streak since June 18. The decision of US President Joe Biden to introduce mandatory vaccination for employees of federal authorities in the fight against the corona pandemic was praised in the market. On the other hand, market participants emphasized that the steps to increase the vaccination rate are also sorely needed. Because in the US, almost 150,000 people are currently infected with the corona virus every day, while the vaccination rate is lagging behind those in Europe and Canada, according to the trade.
Of the Dow Jones Index fell by 0.8 percent to 34,608 points – also burdened by the weakness at Apple. S&P 500 and Nasdaq composite gave up 0.8 and 0.9 percent, respectively.
“It remains to be seen how this will affect consumers, but this is another blow to the temporary development view that is the main reason for continuing the Fed’s contingency policy,” warned Cornerstone Wealth analyst Sean Bandazian. Chief economist Joe LaVorgna of Natixis for America also saw the danger that inflation could be a longer-term problem.
The fact that Biden had a lengthy telephone conversation with his Chinese counterpart Xi Jinping was initially rated positively. The phone call raised hopes that US-China relations would improve again. The tariffs introduced by Biden’s predecessor Donald Trump remained unaffected, which caused some disillusionment.
Wells Fargo stable despite fine
The shares of the technology giant Apple brought up the rear in the Dow with a discount of 3.3 percent. Dealers referred to an unfavorable court ruling in the dispute with Epic Games. A US judge ordered that the rules of Apple’s app store must be changed. Humane (-13.7%) slumped for the second day in a row after the FDA rejected the company’s Covid-19 drug lenzilumab. American outdoor brands turned 1.3 percent into the red with the weak overall market. The firearms supplier exceeded expectations in the first quarter of the financial year.
Despite a raised view, the titles of the supermarket chain tumbled Kroger by 7.5 percent. The net result decreased significantly – despite increased sales. Traders spoke of cost and supply chain problems. Unimpressed by a fine, the bank’s shares appeared Wells Fargo (-0.1%). The amount of the fine is moderate, said analyst Vivek Juneja of JP Morgan. The papers of the restaurant and entertainment company Dave & Buster’s Entertainment attracted after convincing business figures by 1.2 percent.
Gold is one of the losers
At the US bond market yields after producer prices continued to rise. Investors priced in monetary policy tightening, it said. Bank of America’s fixed income analysts predicted a ten-year return of 1.55 percent at the end of the year, most recently ten-year-olds US Treasuries 1.33 percent off.
On the foreign exchange market, the dollar index with the high inflation values turned 0.1 percent into positive territory. Of the Euro, which had hardly moved on Thursday on the ECB statements, gave way accordingly. Despite the previous day’s resolutions, there could be no question of tightening monetary policy by the ECB, it said in the trade.
the Oil prices made up ground after the previous day’s losses. The high gasoline demand during the long holiday weekend in the USA on Labor Day and the first indications that the delta variant of the coronavirus is no longer spreading as quickly supported gasoline and, as a result, oil prices. Hopes of an improvement in US-China trade relations also drove prices up. Of the Gold price was one of the losers with higher market rates and the dollar turned positive. On a weekly basis, the highest loss since the beginning of August was recorded at 2 percent.
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