Thursday, September 16, 2021
“Lethargic Trade”
Dow is largely making up for losses
Americans’ desire to consume has awakened. Increasing sales in the US retail sector provide a small ray of hope on the stock exchanges. Nevertheless, the mood remains subdued.
US stock markets made up for the most part of initial losses in late trading. As in the past two days, buyers came onto the market when the Dow Jones Industrial approached the 34,500 mark on the way down. In the end, the leading index recorded a moderate minus of 0.18 percent to 34,751.32 points. Stock traders spoke of a lethargic trade.
Even before the start of the stock market, economic data had surprised positively. This was especially true for US retail sales. Contrary to analyst expectations, revenues rose in August. There was also a regional sentiment indicator for industry from the Philadelphia region, which rose for the first time in several months. The market breadth S&P 500 closed 0.16 percent lower at 4473.75 points. The one shaped by technology and biotech stocks Nasdaq 100 ended trading up 0.08 percent to 15,515.91 points.
Good economic data are currently not necessarily positive from the point of view of equity investors. Because they could induce the US Federal Reserve to tighten the monetary reins sooner rather than later by curbing the billion-dollar securities purchases. Yields in US bond trading rose after the good economic data. The papers of the network specialist Cisco declined 0.4 percent after gaining in early trading. Several analysts were optimistic about Cisco. The US bank JPMorgan, for example, put the papers on a recommendation list.
Credit Suisse upgraded Cisco from “Neutral” to “Outperform”. However, Cisco had already grown by almost 30 percent since the beginning of the year. Casino operator courses were under selling pressure for the third day in a row. China wants to keep the companies and their activities in the Asian gaming metropolis Macau under closer observation. “This has raised concerns about the future of Macau as the gambling epicenter,” wrote investment bank Jefferies. Shares of Las Vegas Sands fell 1.3 percent and Wynn Resorts by 2.4 percent.
The shares of the meat substitute manufacturer Beyond Meat lost 2.3 percent after investment bank Piper Sandler recommended the paper for sale. The solid economic data put pressure on prices in bond trading. The futures contract for ten-year paper (T-Note-Future) fell by 0.29 percent to 133.00 points. The yield on ten-year paper rose to 1.34 percent. The euro rebounded from previous losses in late US trading, closing at $ 1.1767. The European Central Bank (ECB) had previously set the reference rate at 1.1763 (Wednesday: 1.1824) US dollars. The dollar had thus cost 0.8501 (0.8457) euros.
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