Wednesday, January 06, 2021
Dow creates history
Georgia puts US investors in a buying mood
Initial predictions of the Georgia Senate election point to a Democratic victory. The news caused excitement on Wall Street. In the course of the day, the Dow breaks the 31,000 mark for the first time.
The prospect of new economic stimuli in the US has created buying mood and new records on Wall Street. The Dow made the jump over the 31,000 mark for the first time in its history. The Democrats almost certainly won the two Senate seats in Georgia in the runoff elections. And with this democratic dominance, also known as the blue wave, according to the participants, stockbrokers "naturally" associate the expectation of further government aid packages.
The flip side of the coin is that this is likely to come with higher debt and presumably higher taxes. In addition, the Democrats are seen as more willing to regulate than the Republicans, whereby the corporate giants in the technology sector in particular could be in focus, as well as the oil industry.
These expectations are somewhat relativized by the fact that the democratic majority will be wafer-thin. "Once the clouds have cleared, you will see that the blue turnaround is only a very marginal one," said chief strategist Seema Shah of Principal Global Investors. Equity expert Jeffrey Buchbinder from LPL Financial also described "drastic changes" as unlikely.
The expectations of further economic stimuli were underpinned by disappointing employment data for December from the US private sector and subdued business activity in the US service sector.
Protests in Washington curb indices
On the stock market, this mixed situation was reflected in significantly rising prices, with technology stocks lagging behind. News of turmoil in front of the Capitol, where the Biden victory in the presidential election was to be formally confirmed and the session had to be suspended because of the escalation of violence, caused the indices to come back from their highs more clearly in the second half of trading.
The Dow Jones Index In the end, however, made a leap of 1.4 percent up to 30,829 points. In the day's high and record high, he had already reached 31,022 points. The S&P 500 closed 0.6 percent higher, it also marked an all-time high over the course of the year. The technology-heavy NasdaqIn contrast, indices fell by up to 1.4 percent.
The dollar initially picked up after its most recent dry spell, but only benefited briefly from higher interest rates. In the course of time he suffered noticeably from the prospect of a higher national debt. The dollar index was recently just in the red. The goldprice was under great pressure, on the one hand because of rising interest rates, on the other hand because the precious metal is becoming more expensive for buyers from the non-dollar area due to the rising dollar. In addition, it was not in demand as a safe haven. The troy ounce fell by $ 29, or 1.5 percent, to 1,919.
Papers from the financial sector up
The courses of the technology giants Apple, Amazon, alphabet, Facebook, Microsoft or Netflix gave between 1 and 3.9 percent. Shares from the financial sector were clearly favored. The S&P 500 bank index was almost 6 percent up. Bank stocks were sought after because of the sector's economic sensitivity, but above all because of the significantly higher interest rates. Higher interest rates make business easier and more lucrative for banks. Insurers, whose sub-index gained a good 3.5 percent, also benefit from the higher interest rates.
The individual values rose Moderna by 6.5 percent after the US company's corona vaccine can now also be used in Europe. Vaccine Competitor's Course Biontech increased by 5.0 percent. Change Healthcare made a leap up 30 percent, Unitedhealth gained 4.2 percent. The US health insurer is buying the healthcare technology company for around $ 7.8 billion.
Amerisource Mountains jumped 8.6 percent. The pharmaceutical wholesaler takes over the majority of the pharmaceutical wholesale business for $ 6.5 billion Alliance Healthcare of Walgreens Boots Alliance. This makes Walgreens the largest single shareholder. The Dow value Walgreens rose 4.5 percent.
The US depository receipts of the Chinese telecommunications companies were again in focus China Telecom, China Mobile and China Unicom. At first they lost a lot, but then the day went unevenly. China Mobile lost 5.5 percent while China Telecom gained 1.4 percent. The New York Stock Exchange has made another U-turn and will now end the listing of the three stocks. The background to this is an earlier order by US President Donald Trump, which aims to prohibit trading in the securities of companies with ties to the Chinese military.
At the Oil market After the strong boost the day before, it went further up. After the WTI-Price on Tuesday for the first time since February briefly risen above 50 dollars a barrel, it was last with an increase of 0.9 percent at 50.36 dollars. After the Opec + compromise about only slightly increasing oil production, significantly lower US oil stocks last week caused prices to rise.
. (tagsToTranslate) Dow (t) Historical (t) Georgia (t) US investors (t) buying mood