Despite the corona crisis, the US stock markets are experiencing good times, sometimes even record levels. But this trading day shows a different picture – the large indices are falling noticeably. This is not only due to weak labor market data.
Wall Street investors have eagerly taken profits. There were plenty of occasions: bad news from the job market or the recent escalation of the trade dispute between the United States and China. After the United States ordered the Chinese consulate to be closed in Houston, US President Trump threatened to close more consulates.
Of the Dow Jones index went out of trading with a minus of 1.3 percent to 26,652 points. Of the S&P 500 index closed 1.2 percent lower that Nasdaq composite fell by 2.3 percent. There were 1,342 (Wednesday: 1,704) course winners and 1,652 (1,288) losers on the Nyse. 71 (72) closed unchanged.
Republicans in the U.S. Senate have reached an agreement with the White House over further support measures to deal with the corona pandemic. Negotiations with the Democrats on a fifth rescue package can now begin. "It appears to be an extension of the program," said Andrew Hunter, an economist at Capital Economics. The data situation suggests that the need for financial support has increased in recent weeks.
Current data from the labor market confirmed this: the much-noticed number of initial applications for unemployment benefits from the previous week was published on the exchange. According to this, 1.416 million Americans applied for unemployment benefits for the first time. Economists had expected 1.3 million initial applications. By contrast, the leading indicators index was better than expected.
Tesla share weak despite quarterly profit
In the stock market, the participants sold the big tech giants that had done well in the past few months. So lost Amazon 3.7 percent, alphabet 3.1 percent, Netflix 2.5 percent or Apple 4.6 percent.
However, it was also hopeful on Thursday that some companies are doing better than expected in the crisis. The Twitter share jumped up 4.1 percent. The operator of the short message service of the same name posted a significant loss in the second quarter and missed expectations with sales and earnings, but at the same time gained more users than expected.
The second quarter figures of Tesla were initially also received positively; at the end of trading, however, the share was down 5 percent. The manufacturer of electric cars reported a profit for the fourth consecutive quarter. However, analysts had forecast that Tesla would slide into the red. However, traders pointed to the recent high of the stock, which makes it vulnerable to profit taking.
The responded with a minus of 4.4 percent Microsoft share on the number card, which the group also published on Wednesday after the end of trading. The company increased its sales by 13 percent in the fourth quarter, and net earnings did not fall as much as feared due to the strong cloud business, but analysts criticize margins in some areas.
The figures for the confectionery company are also mixed Hershey released on Thursday. However, management is confident that it will be able to increase sales again in the second half of the year. The share rose by 5.7 percent.
The shares of the telecom group also gave on the basis of figures AT&T by 0.9 percent. The airline's quarterly statement American Airlines was acknowledged with a plus of 3.7 percent.
Euro over $ 1.16 at times
The weaker labor market data allow investors Government bonds to grab. The ten-year return drops 2.50 basis points to 0.57 percent.
The troy ounce gold rose to its highest level in almost nine years and is now just over $ 30 below the all-time high of the time. The price rose 0.7 percent to $ 1,886, during the day's high it had even risen to $ 1,898.5. "Gold has the potential to rise to $ 2,000 per troy ounce by the end of the year. There will be $ 2,200 in 2021," says Vontobel. Monetary policy, fiscal policy, the green energy transition and supply bottlenecks currently speak for gold. Of the Silver price, who was bullding even more vigorously than gold on the previous days, is now taking a little breather.
Of the Euro passed the $ 1.16 mark but fell back to 1.1590; the daily high stood at 1.0627. Although the euro has risen significantly against the dollar and is well on the way to a two-year high, the rise is also due in part to a general weakness of the dollar, says Commerzbank analyst Thu Lan Nguyen and emphasizes the appreciation potential of the euro not to underestimate. As soon as the market looks beyond the short-term economic effects of the latest EU deal and also focuses on the long-term implications, it can move towards a stronger appreciation trend.
The Oil prices fell after a weak dollar initially supported. An increase in the supply envisaged by Opec + and increased US stocks depressed as did concerns about sluggish demand. So Chinese purchases were missing. The oil stores in China are full and there are also adverse circumstances such as the floods in the south of the country. So it will still be some time before China reappears as a buyer. The stock market setback also depressed prices. The barrel of US light oil of the variety WTI decreased 1.7 percent to $ 41.20. Of the Brent price fell 1.9 percent to $ 43.44.
. (tagsToTranslate) stock trading (t) Wall Street