Friday April 16, 2021
New records in New York
Wall Street is going into the weekend lively
The pace is not quite as lively at the end of the week, but new highs are still possible on Wall Street. Because the US economy is increasingly looking at the corona crisis from the rear-view mirror, all three indices are climbing new records.
Investors also bet on US stocks on the last trading day of the week. The Dow Jones Industrial climbed to another high in the first few minutes of trading, as did the market-wide S&P 500. The technology-heavy one Nasdaq 100 In the end, it lagged a little behind with an increase of 0.11 percent to 14 041.9 points, but also marked a record high.
The Dow expanded the winning streak of the past few weeks by a further 0.48 percent to 34,200.6 points. From a weekly perspective, there is a surcharge of a good one percent for the leading index. Since the beginning of the year, the Dow has grown by almost twelve percent. The market-wide S&P 500 advanced 0.36 percent to 4185.4 points. The ever-increasing economic activity and the advances in corona vaccinations in the USA are driving the stock exchanges further.
US economy is picking up speed
Despite the price rally of the past weeks and months, experts still see upside potential: The Swiss bank UBS raised its target price for the S&P 500 index by the end of the year from 4200 to 4400 points this Friday. “With the economy reopening faster in the coming months, we believe the bull market will continue to stand on solid foundations,” wrote investment chief Mark Haefele.
After two rounds of stimulus from the US government and thanks to continued progress in vaccinations against the corona virus, according to the expert, there is increasing evidence that economic activity in the US is picking up speed again. In addition, the cost pressure on companies is largely only of a temporary nature and can be offset by sales growth.
Tomorrow Stanley under pressure
With a view to the individual stocks, the quarterly reports of companies caused movement. This is how the shares of the banks got Morgan Stanley and Bank of New York Mellon under pressure with losses of 2.8 and 4 percent respectively. Morgan Stanley’s quarterly report also had a flaw, despite strong numbers. A single customer defaulted over $ 900 million in losses. At the Bank of New York Mellon, analysts criticized the profitability of the interest-bearing securities business.
The course of the asset manager State Street sagged by as much as seven percent. The forecast of less steep increases in fees in the current second quarter disappointed investors. The papers of Alcoa on the other hand, moved up by 8.5 percent to their highest level since the end of 2018. At the beginning of the year, the group benefited from rising aluminum prices in the course of the expected economic recovery, especially in the USA. At the top of the Dow Jones Index sat Cisco with a profit of 2.3 percent. The analysis house Wolfe Research advised buying the shares of the IT network equipment supplier. In the past few weeks, the two major investment houses Goldman Sachs and JPMorgan had already given Cisco shares a higher rating.
The Euro was again stable, but just missed the jump over the $ 1.20 mark. The last time it was in New York was $ 1.1981. The European Central Bank had previously set the reference rate at 1.1986 (Thursday: 1.1970) dollars. The dollar had thus cost 0.8343 (0.8354) euros. US Treasuries gave way, the unbroken bull market on the US stock market pushed bonds into the background: The futures contract for ten-year Treasuries (T-Note-Future) fell 0.14 percent to 132.21 points. The yield on ten-year bonds was just under 1.6 percent.
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