Deliveroo makes debut: Nasdaq is making up ground

Deliveroo makes its debut
Nasdaq is making up ground

jpe / DJ

In the evening, US President Biden wants to present his economic stimulus program. Accordingly, investors on Wall Street are holding back with larger deals. While the Dow is on the downside, the Nasdaq is making up ground after the losses of the past few days.

The US stock exchanges showed themselves to be split in two by midweek. While the Dow was nearly flat, the Nasdaq composite posted significant gains. Of the Dow Jones Index closed 0.3 percent lower at 32,981 points during the S&P 500 increased by 0.4 percent. For the tech-savvy Nasdaq Composite it went up by 1.5 percent. There were a total of 2,007 (Tuesday: 2,067) course winners and 1,294 (1,235) losers. 90 (105) titles closed unchanged.

Meanwhile, there was no interference from the bond market. Yields there rose slightly again, but were well below the highest level in 14 months reached on Tuesday, which had primarily weighed on technology stocks on the stock market. The technology sector is particularly sensitive to rising market interest rates because of its higher level of debt.

Nasdaq Composite 13,246.87

Meanwhile, market participants were eagerly awaiting details of the trillion dollar infrastructure program that US President Joe Biden will explain after the US market closes. The main focus is on the question of how the planned investments in the expansion of infrastructure and renewable energies are to be financed by the taxpayer. Biden has already indicated that higher incomes should be taxed significantly higher. The president also wants to burden companies more.

The program is necessary so that the economy can recover from the tremendous shock, said Jane Shoemake, portfolio manager at Janus Henderson Investors, alluding to the slump as a result of the corona crisis. However, it is also clear that the associated expenses would have to be counter-financed somehow. Tax increases are therefore very likely.

Apple
Apple 122.15

Meanwhile, the employment situation in the US has continued to improve, according to the labor market report of the private service provider ADP. With an increase of 517,000 jobs, the increase in employment in the private sector was not quite as strong as economists had forecast, but it was still considerable compared to the plus of 117,000 recorded in February. The purchasing managers’ index for the Chicago region rose surprisingly significantly compared to February.

Deliveroo debut has little impact on Amazon

Below the individual values Walgreens Boots Alliance by 3.6 percent after the pharmacy and drugstore chain had presented convincing business figures. Apple (+ 1.9%) benefited from the upgrade to “Buy” by UBS.

Amazon
Amazon 3,094.08

Amazon (+ 1.3%) were unimpressed by the disappointing IPO of the food supplier Deliveroo, in which the US group is involved. The Deliveroo share fell on its first day of trading on the London Stock Exchange around 30 percent below the issue price that the company had already set at the lower end of the aforementioned range.

General Motors (-1.8%) calls more than 10,000 vans into workshops because of a fire risk associated with battery cables. Conocophillips after presentation of preliminary business figures for the first quarter after 0.9 percent. The Group’s oil production was reduced by the winter storm Uri.

Oil price weakens ahead of Opec + conference

The Oil prices tended down. The market participants are waiting for the conference of the Opec + countries on Thursday, which will also be about the extension of production volume restrictions. Opec General Secretary Mohammad Barkindo said in a comment beforehand that the economic environment “remains challenging, complex and uncertain”. According to data from the state Energy Information Administration (EIA) in the previous week, crude oil inventories in the USA decreased somewhat more than expected.

Of the dollar tended a little easier after the increase from the previous day. The dollar index fell 0.1 percent. The dollar has already benefited from the announcement of the infrastructure package, said Commerzbank. The market seems to be betting that at least part of it can be waved through, which suggests that the US economy will receive further tailwind. However, this is double-edged. Because the rise in US yields at least partially reflects fiscal risks. But these are dollar negative.

These risks could come into focus as Republicans are likely to resist funding the package through tax hikes. For the dollar, it will ultimately be decisive whether the market can be convinced that the planned investments could increase the long-term growth potential of the USA. With this in mind, special attention should be paid to the details of the plans.

On the bond market, the ten-year yield of 1.73 percent was well below the 14-month high of over 1.77 percent that was reached the day before. The gold price rose slightly with the weaker dollar and rose again above the mark of $ 1,700 per troy ounce.

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