Disappointing labor market data: Wall Street turns into the red after records

Disappointing labor market data
Wall Street is turning into the red by records

The prospect of new economic stimulus means temporarily highs on the US markets. However, investors are taking advantage of the initial records on Wall Street to take profits.

Wall Street closed this Thursday after a record rally with slight losses. Dealers referred to the disappointing labor market data for reasons. The US Standard Values ​​Index Dow Jones closed 0.2 percent lower to 30,991 points. The technology-heavy one Nasdaq gave in 0.1 percent to 13,112 points. The broad one S&P 500 lost 0.4 percent to 3795 points.

The number of Initial jobless claims in the USA has recently skyrocketed again. A total of 965,000 Americans applied for government support last week. In the seven days before, there had been only 784,000. Economists polled by Reuters had only expected an increase to 795,000 initial applications for the previous week.

In early trading still had the expectation of details on the planned stimulus package of the future President Joe Biden for the US economy drove the prices on the New York stock exchanges. According to a newspaper, Biden will receive a new Conrona aid package worth $ 1.9 trillion to introduce. This includes further direct aid to US citizens for $ 1,400 each, reported the New York Times, citing two people familiar with the plans.

Positive test results from another coronavirus vaccine helped Johnson & Johnson at a price increase of 1.7 percent. The drug from the pharmaceutical and consumer goods manufacturer, which only needs to be administered once, is reported to be effective and well tolerated by the test subjects. It could be available in Europe in April.

USA let Alibaba and Baidu off the hook

Among the winners on Wall Street were Alibaba and Baidu. The stocks of the two Chinese technology companies listed in the USA rose by up to five percent. According to insiders, the competitors from Amazon and Google should not be blacklisted by the government.

The partnership with Taco Bell was tasty for investors Beyond Meat. The titles of the vegan burger company, which is supposed to develop meat substitute products for Tex-Mex fast-food restaurants, won a good 13 percent. The papers of Taco Bell mother Yum, which also includes the Kentucky Fried Chicken and Pizza Hut chains, advanced 0.6 percent.