Dow Jones in the red: inflation data does not support Wall Street

Dow Jones in the red
Wall Street does not support inflation data

US consumer prices rose less than expected in August. Nevertheless, Wall Street reacts with losses at the end of the day. The German vaccine manufacturer Curevac is also among the losers.

The eagerly anticipated inflation data from the US did not give a boost to Wall Street listings. It is true that consumer prices in August did not rise quite as strongly as expected from a high level. However, this only resulted in slight price gains in the first few minutes of trading. Then the leading index turned Dow Jones Industrial in the red, widening losses and falling to its lowest level in nearly two months. In the end, the Dow saw a discount of 0.84 percent to 34,577.57 points.

The broader one S&P 500 lost 0.57 percent to 4443.05 points. The technology-heavy one Nasdaq 100 held up a little better with a minus of 0.33 percent to 15,382.90 points. “The inflation rate fell marginally,” noted economist Bernd Krampen from Landesbank NordLB. The price drivers of the past few months such as used cars, hotel stays and flights have “experienced a certain normalization”. However, goods bottlenecks, delivery interruptions, port closures and the shortage of containers kept price pressure high overall, which is likely to continue for longer.

Casino industry under pressure

Analyst Edward Moya from trading house Oanda wrote in a market commentary that the companies had not fully passed on rising producer prices to end consumers. This raises questions about profitability and has pushed share prices down during trading. The quarterly figures of the SAP counterparty Oracle were badly received by investors. The analysts from JPMorgan criticized weak earnings in the business with software licenses, while Internet-based offers had increased strongly.

Apple 148.12

OracleShares lost almost 3 percent – after they had risen by a good 37 percent since the beginning of the year. Apple gives his iPhones a faster chip and better cameras before the important Christmas business. However, the new products did not help the Apple share. The paper lost 1 percent in the weak overall market.

On the other hand, the reaction to a takeover in the software industry was positive: the US software group Intuit is taking over the email marketing service provider Mailchimp. Intuit is paying around $ 12 billion in cash and shares to acquire the private company. the Intuit– Papers gained 2 percent.

The casino operator industry came under heavy pressure. The government of the Chinese Macau Special Administrative Region wants to take a closer look at its business in the future, but initially did not provide any details. Macau is known as the Las Vegas of Asia. Shares in casino companies operating there such as Las Vegas Sands and Wynn Resorts collapsed by around 10 percent each. MGM resorts fell nearly 4 percent.

Curevac is burdened by low demand

Curevac
Curevac 51.27

Payed under the smaller titles Curevac 8 percent one. Due to lower demand for its corona vaccine candidate, the biotech company is downsizing its production network. US Treasuries benefited from consumer prices. The futures contract for ten-year papers (T-Note-Future) rose by 0.22 percent to 133.59 points. The yield on ten-year paper fell accordingly to 1.27 percent.

The euro fell slightly in US trading; at the close of the US market, the common currency cost 1.1806 US dollars. The European Central Bank (ECB) had previously set the reference rate at 1.1814 (Monday: 1.1780) dollars. The dollar had thus cost 0.8465 (0.8489) euros.

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