Monday April 12, 2021
Dow Jones drops feathers
Wall Street takes a break after chasing records
After the recent records, Wall Street is quiet. Many investors prefer to wait for the upcoming economic data and annual reports from the banking sector. The planned takeover of Nuance Communications by Microsoft alone caused a stir.
After another record hunt at the end of the week, Wall Street barely moved. The signs pointed to consolidation. Investors can look forward to an eventful week, especially in the banking sector: So open JP Morgan, Goldman Sachs and Wells Fargo Her books on Wednesday, followed on Thursday Bank of America and Citigroup. There was nervousness about the upcoming consumer prices on Tuesday after US producer prices had recently risen sharply.
The US Federal Reserve had recently stated again and again that price increases should prove to be temporary and that it would not take action against them. US Federal Reserve President Jerome Powell sees the US economy at a turning point. Production and job growth will accelerate in the coming months and the Covid-19 pandemic will withdraw. Powell continues to rule out rate hikes in 2021. But a certain mistrust remains among investors.
The Dow Jones Index lost 0.2 percent to 33,745 points. The S&P 500 closed almost unchanged. The Nasdaq Composite closed 0.4 percent lower.
Nuance Communications benefits from Microsoft’s interest
Microsoft want Nuance Communications take. The deal values the artificial intelligence and language technology company at $ 19.7 billion. Meanwhile, Microsoft wants to continue its share buyback program undiminished. Microsoft titles closed almost unchanged, while Nuance shot up by almost 16 percent.
Boeing lost 1.1 percent. The capacities of the airlines around the world fell this week for the first time in two months compared to the previous seven days. This makes business difficult for aircraft manufacturers, especially since Boeing also has to cope with a strike in Washington State.
The air Line United Airlines Holdings For the first quarter of 2021, expects a significant drop in sales to 3.2 billion US dollars and thus misses the analyst forecasts. In a filing to the US Securities and Exchange Commission, the company said revenue would slide 66 percent from the first quarter of 2019. The share fell 3.9 percent.
Tesla gained 3.7 percent to just under $ 702 after Canaccord Genuity took the stock up on Buy and more than doubled its target price to $ 1,071. Nvidia advanced 5.6 percent after the group raised its sales forecast.
Aphria collapsed by 14.3 percent. The shares of the Canadian manufacturer of medical cannabis scares investors with weak third quarter results. Signet Jewelers raised the outlook for sales. The prices of the diamond retailer then rose by 7.9 percent.
The ADR of Alibaba rose by 9.3 percent. The “Chinese Amazon” wants to meet the requirements of the Chinese regulators through changes in business and structure. Alibaba wants to invest in measures to support retailers on their platform.
Hardly any movement on the foreign exchange market
At the Bond market Yields rose slightly with inflation concerns. However, the ten-year return remained below its most recent high for the year, but remained at an elevated level. Traders point to doubts about possible monetary tightening by the Fed.
Fed President Powell’s optimistic assessments of the state of the US economy were meanwhile slightly bolstered Oil prices. If the economy picks up as promised by Powell, the demand for oil should rise, it said.
At the Currency market little happened. With a view to the upcoming consumer prices in March, there is restraint, it said. However, because of the lockdowns, their information content regarding inflation will be rather low, according to analysts. Meanwhile, the gold price fell after two strong weeks.
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