Friday June 25th 2021
Nike takes off, Fedex collapses
Wall Street is celebrating its best week since April
Calming on Wall Street: New data from May let inflation concerns evaporate for the time being, new numbers from Nike are fueling the desire to buy. The S&P 500 therefore marks another all-time high. Only in the tech-heavy Nasdaq does it look cloudy.
Wall Street brings home the best weekly result in over two months on Friday. The Dow Jones was supported by a rally at Nike and the S&P 500 marks another all-time high. “We are still in a phase in which economic activity continues to rise. But it is normal to see some volatility in the stock market from time to time,” said fund manager Hani Redha of PineBridge Investments. But the fundamental support with improving data is crucial.
The Dow Jones Index rose 0.7 percent to 34,434 points that S&P 500 by 0.3 percent. Nasdaq-Composite decreased 0.1 percent. Rising market rates weighed on technology stocks on the Nasdaq. At Nyse there were 1,860 (Thursday: 2,295) course winners and 1,454 (1,054) losers. 138 (110) titles closed unchanged.
As an example of improving data, market participants cited US consumer sentiment. Because according to the revision, it had brightened more clearly than expected in June. At the same time, the inflation rate, which rose less than expected, provided relief for May. Rising inflation had previously fueled investors’ fear of a faster decline in central bank funds.
“The data let the investors breathe deeply and give them the feeling that the inflation fears could be a bit exaggerated,” said market expert Thomas Hayes of the asset manager Great Hill Capital in New York.
Dollar volatile
The dollar came under some pressure with the low personal expenses, but recovered again with the very positive consumer sentiment and was practically unchanged in the evening. The Gold price if something fortified itself, investors were more likely to stick with the dovish statements of Kashkari.
The Oil prices tended more firmly. Speculations about the next steps of the OPEC + group resulted in an expansion of production. This should not cover the increasing demand, it said. Yield gains dominated the bond market, the ten-year yield rose by 4 basis points to 1.53 percent – driven by the high inflation data and positive consumer sentiment. There is still a moderate rate hike fantasy, it said with a view to Rosengren.
Nike hit an all-time high
With a fireworks display at a record high, the fourth quarter figures of Nike celebrated. The share made a jump of a good 15.5 percent upwards. The US sporting goods manufacturer almost doubled its sales compared to the previous year and returned to profitability.
Fedex lost 3.9 percent after the annual report was presented. For the logistician, the market was obviously not good enough, because Fedex had reported record numbers. According to market observers, the cautious outlook was responsible for the price decline.
The online marketplace Ebay wants to increase the share buybacks planned for this year. This year, shares are slated for $ 5 billion to be repurchased, compared to just $ 2 billion in the previous buyback plan. The share gained 2 percent.
The IT service provider Synnex increased profit and sales significantly, the price trended 0.4 percent higher. However, the company promised lower sales for the current quarter. Progress Software showed themselves to be 1 percent weaker according to the quarterly report.
CarMax climbed by 6.7 percent, the used car dealer commented positively on the course of business. The title of car washer made a brilliant debut on the stock market Mister Car Wash out, the papers closed 35.3 percent above the issue price. The valuation was thus around 6 billion dollars.
After the agreement in Washington on the trillion dollar infrastructure package rose Solar power companies in the favor of investors. Part of the money should flow into sustainable energies. Shares in Enphase Energy, ReneSola, Canadian Solar, SunPower, Maxeon Solar Technologies and Sunrun gained between one and 4.9 percent over the course of the day.
You can read about trading on the Frankfurt floor in our stock exchange day.
Recorded price losses Travel and tourism values. Because of the spread of the delta variant of the corona virus, which was first detected in India, there is a risk of new travel restrictions, said market analyst Milan Cutkovic from brokerage house Axi. Papers from Skywest, American Airlines and JetBlue have given way up to one percent in the meantime.
A comprehensive flight license from the US aviation authority gave Virgin Galactic on the other hand, buoyancy. The space company’s shares rose more than 16 percent. The FAA is expanding the freight license and will also allow the company to carry passengers commercially in the future.
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