Friday, July 9th, 2021
Curtain up for the financial season
Wall Street is in record fever again
Wall Street is shaking off the price losses of the past few days. Investors are bravely picking up on the recently neglected default values again. On the other hand, the technology stocks that have recently performed better are lagging a bit behind.
The has clearly recovered from the previous day’s taxes Wall street presented on the last trading day of the week. On Thursday, the S & P-500 – triggered by heightened economic worries – recorded the strongest daily loss in around three weeks, and by the weekend it reached a new all-time high. The Nasdaq composite also reached a record high on a closing basis. Investors were already looking confidently to the reporting season for the second quarter that started next week. The Dow Jones Index switched 1.3 percent to 34,870 points, the S&P 500 gained 1.1 percent while the Nasdaq Composite gained 1.0 percent. 2,631 (Thursday: 732) price winners and 723 (2,605) losers were seen. 111 (119) titles closed unchanged.
Randy Frederick from the Schwab Center for Financial Research commented on the ups and downs of the market: The market does not currently know whether it wants bad data and thus cheap money or good data and thus a tighter monetary policy. This battle will continue to rage until the reporting season reveals new information. Next Tuesday will be with Goldman Sachs and JP Morgan the banks open the season. “The music has changed. We are entering a new phase for the markets,” said Luca Paolini, chief strategist at Pictet Asset Management, referring to the heavy losses on Thursday: “There has been a shift in the fundamentals of the market from high Given growth and lower inflation towards higher inflation and weaker growth. ”
Oil price recovery continues
The Oil prices continued their long-term uptrend. From a weekly perspective, however, there is a minus to be booked. After the multi-year highs on Monday, oil prices fell sharply in the days that followed. After Opec + was unable to agree on an increase in funding, concerns dominated that the members could raise funding on their own initiative. The dollar trended lighter, the dollar index lost 0.3 percent. The Euro advanced to 1.1879. The participants were a little braver, which put the dollar under pressure.
At the same time, the greenback gained somewhat against the “safe haven” yen, after having given up significantly the day before. The Gold price gained, moving upward from the $ 1,800 mark. The precious metal is benefiting from the search for security due to the re-spreading coronavirus pandemic, it said. It was the highest weekly profit in seven weeks, also boosted by the capricious stock market, the falling dollar and significantly falling yields. US bond yields rebounded from the recent hefty downturn, which last led them to their lowest level since February. The ten-year return rose 6 basis points to 1.36 percent.
Pfizer and Biontech wanted with application for third-party vaccination
In the case of the individual values, the shares of Pfizer up by 1.1 percent, Biontech gained 4.6 percent. The two vaccine manufacturers want to apply for approval for the administration of a third dose of their corona vaccine soon. According to their own statements, the companies plan to submit corresponding data to the US FDA, the European Medicines Agency (EMA) and other regulatory authorities “in the coming weeks”.
Bank stocks benefited from rising market rates. The banking sector was at the top with a plus of 3.5 percent. JP Morgan gained 3.2 percent and Goldman Sachs 3.4 percent. For the papers of the takeover vehicle (SPAC) Gores Guggenheim it went up by 1.2 percent. According to a media report, Gores Guggenheim is negotiating with Volvo and its owner Geely through a merger with Polestar, the electric car division of Volvo. This could lead to Polestar being listed on the stock market. The transaction could be worth around $ 25 billion.