Let off steam on tech stocks: Dow Jones ends the week with a plus

On Wall Street, tech stocks aren't the big winners at the end of the week – they're suffering from profit-taking. The Dow Jones, on the other hand, is showing strength.

At the end of a good week on the stock market, the Dow Jones Industrial added a little extra. The US benchmark index turned positive in late trading, while the two technology-heavy Nasdaq indices suffered from profit-taking. They had rushed from record to record in the past few days. A strong labor market report initially provided some relief in the course of trading, but then overall cautiousness outweighed the recent resurgence of the dispute between the US and China.

Of the Dow gained 0.17 percent to 27 433.48 points. On a weekly basis, there is an increase of 3.80 percent. For the broad market S&P 500 it went up 0.06 percent to 3351.28 counters. The technology-heavy one Nasdaq 100 lost 1.13 percent to 11 139.39 points. The selection index Nasdaq Composite had struggled to hit another record high before turning into the red and finally losing almost 1 percent.

The labor market report had been anticipated with particular suspense, as it should be interpreted as an indication of the question of whether the growing economic optimism in the United States is justified. In fact, according to the data, employment in the USA rose surprisingly significantly in July, which made up for the sharp slump in the Corona crisis.

Analyst Michael Hewson from trading house CMC Markets pointed out that the figures did not include the past two weeks, and thus also not the increasing number of infections and the new regional lockdowns. In any case, the ups and downs in the labor market are currently difficult to capture in the figures, as the retrospectively strongly revised upwards data for May and June showed.

In view of the renewed dispute between Washington and Beijing, the US government announced that it would take action on a broad front against "untrustworthy apps from China" and want to remove them from the app stores. Names like the video app Tiktok and the messenger service Wechat were mentioned. The US increased the pressure on China ahead of the planned meeting of the two countries on August 15, wrote expert Stephen Innes from the broker AxiCorp. The Beijing government spoke of "bullying".

A strong quarterly report paired with a surprisingly good outlook gave the papers of T-Mobile US an increase of 6.5 percent. In the course of trading, the shares held by the Deutsche Telekom mobile phone subsidiary had reached an all-time high.
At the top of the Nasdaq 100, stocks pulled Biogenic by a good ten percent. An Alzheimer's drug from the pharmaceutical company is now being given priority review by the US FDA. Depending on the design of an approval decision that now appears more likely, there will be considerable sales potential, but this cannot currently be assessed seriously, wrote analyst Elmar Kraus from DZ Bank.

Of the Euro came under pressure amid strong US labor data, and most recently cost $ 1.1785. The European Central Bank set the reference rate at 1.1817 (Thursday: 1.1843) dollars. Of the dollar cost 0.8462 (0.8444) euros. Trend-setting ten year old US Treasuries fell 8/32 points to 100 19/32 points and returned 0.562 percent.