Monday, June 28, 2021
Facebook increases after judgment
Records continue on Wall Street
After new records on Friday, Wall Street is starting the new week at a rapid pace. S&P 500 and Nasdaq hit new all-time highs. Facebook benefits from a dismissed monopoly lawsuit. Nevertheless, concerns about the delta variant of the corona virus are slowing the market slightly.
The record hunt on the US stock exchanges has continued. Both the market-wide S&P 500 and the Nasdaq indices hit new all-time highs. The Dow Jones Index on the other hand, heavyweight Boeing in particular pushed it into the red. The index lost 0.4 percent to 34,283 points. The S&P 500 gained 0.2 percent. The technology-heavy one Nasdaq composite advanced 1.0 percent, supported by falling market rates. 1,348 (Friday: 1,755) price winners were seen, compared to 2,045 (1,526) losers. 124 (179) titles went unchanged from the market.
Traders expect low momentum trading through Friday when the June employment report is released. Shares are likely to do well as long as money managers hold on to their belief that the current rise in inflation will ease off again and that market rates will remain relatively low, said investment strategist Edward Park of Brooks Macdonald. “Investors have the option of losing money to inflation in the bond market, losing it in the form of cash or investing it in risk assets.”
Frank Oland, chief strategist at Danske Bank, believes the US stock market has further potential in the medium term. “But of course the US growth momentum has probably peaked, so the data will start to look less impressive – and that could be a cause for concern.” Danske’s market strategists are scaling back their US credit exposure and shifting to Europe.
The market was slowed somewhat by the global headlines about the delta variant of the coronavirus. In the US, 46.1 percent enjoy complete vaccination protection, and 66 percent of Americans are vaccinated at least once. But that is not enough to keep the more infectious Delta variant completely in check, warn traders.
The price of oil is falling, but oil remains expensive
The dollar gave up its surcharges in the meantime, the ICE dollar index was only marginally in the plus. Forex traders pointed to statements by US Federal Reserve officials that the recent rise in inflation was “only temporary,” but also to the drop in bond yields. The euro moved up from the $ 1.19 mark.
As the dollar fell, it rallied Gold price, which was now just about $ 1,780 in the market on a daily basis. Market participants should keep an eye on support at $ 1,764 and the $ 1,755 mark, it said. Quotations rose on the bond market and yields fell as a result. Traders could not name an immediate reason for the movements in dollars, bonds and gold. Some spoke of a mild summer trade without any fundamental guidelines.
The boom in oil prices took at least a break – at a high level. Previously both had on Monday Brent as well as WTI marks new multi-year highs. Now profits have been reaped, which market participants also explained with the fear of new lockdowns. The focus is now on the meeting of the Opec + group on Thursday. At ING it was said that the producing countries could agree on a daily increase of 500,000 barrels. “That is unlikely to end the price increase, since demand will continue to recover with normalization,” said the market participant quoted above.
Facebook benefit from a positive court decision
Facebook improved by 4.2 percent after a US federal judge rejected monopoly lawsuits by US authorities against the operator of the social network of the same name.
Boeing will probably not be able to deliver the first models of the 777X long-haul aircraft until 2024 at the earliest. According to a report, the US licensing authority FAA has repeatedly warned the company that the plane was not ready for certification. The titles lost 3.4 percent.
Tesla rose by 2.5 percent. The recall in China is not a burden. The electric car maker has to address cruise control safety issues in over 285,000 vehicles in China. Carnival lost 7.0 percent. The cruise line continues to write losses. In addition, the titles, like the rest of the tourism industry, suffered from the spreading delta variant of the corona pandemic and the discussion about tightened travel restrictions. The competitor’s course Royal Caribbean fell 6.4 percent.
They showed up very firmly Nvidia (+ 5.0%). The Sunday Times reported that competitors Broadcom, Mediatek and Marvell were in favor of Nvidia’s proposed acquisition of ARM Holdings
.