It is struck again on the US stock market. After a long dry spell, investors are picking up again. Some of the major indices rise by almost two percent. Among the individual stocks, the share of the aircraft manufacturer Boeing is causing a sensation.
After the longest losing streak in a year, bargain hunters have helped the US exchanges to make gains. The Dow Jones index of standard values rose 1.5 percent to 27,584 points. The broader S&P 500 gained 1.6 percent to 3352 points. The index of the technology exchange Nasdaq-Composite rose by 1.9 percent to 11,118 points.
The price gains showed that investors are becoming more confident that the economy will continue to recover, said John Traynor, chief investor at People's United Advisors. However, given the rising number of new coronavirus infections, no all-clear could be given, he said. "We don't see this as the first step in an upswing. We'll see a lot of turmoil between now and the presidential election."
Sentiment was buoyant with the latest data from China, where industry profits rose for the fourth month in a row. "This data is a reminder to investors that we are not heading for a new bear market or a new recession," said Sam Stovall, chief strategist at financial services company CFRA.
In the steel sector, the focus was on a takeover. Cleveland-Cliffs buys Arcelormittal's US steel business for approximately $ 1.4 billion. Cleveland-Cliffs shares were up 11.6 percent. Devon Energy stocks were up 11.1 percent and WPX Energy stocks were up 16.4 percent. Both companies are merging in the form of a share merger among equals. This has a volume of around 12 billion dollars.
Hope for Boeing investors
Boeing shares were among the biggest winners in the Dow, up 6.4 percent. The head of the US aviation regulator Steve Dickson said his agency will test the 737 MAX aircraft. This is an important milestone in order to be able to put the machine on the ground back into operation after two crashes.
In contrast, shares in vaccine developer Inovio fell by more than a quarter. The company cannot begin a planned efficacy study for the time being because the US FDA has questions. In Frankfurt, the Dax was 3.2 percent firmer at 12,870.87 points. Here, too, the recently battered bank shares were in demand.
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