Tuesday, August 03, 2021
Optimism on Wall Street
Investors are back to stocks
While the start of the week ended with a breather, buyers are coming back to the market today. Last but not least, they were attracted by an exceptionally positive reporting period. Nevertheless, there is still some skepticism.
Wall Street ended Tuesday in profit. After the break at the beginning of the week, buyers came back to the market. Overall, an optimistic attitude prevailed, it was said – not least because of the extraordinarily positive reporting period of the companies. The Dow Jones index closed 0.8 percent higher at 35,117 points, the S&P 500 rose 0.8 percent. The Nasdaq Composite gained 0.5 percent. There were a total of 1,916 (Monday: 1,501) course winners and 1,383 (1,844) losers. 128 (125) titles closed unchanged.
“It’s been a pretty strong earnings season, and that justifies our positive view on stocks over the medium term. Earnings usually always outperform analysts’ estimates, but earnings are above the highest estimates for the second quarter in a row, which is pretty unprecedented,” began Fund manager Justin Onuekwusi from Legal & General Investment Management set the mood. However, there is still a lot of skepticism in the market and the Dow Jones index was still in the red at the start of trading.
Participants referred to the delta variant of the coronavirus, which leads to new restrictions. The mask requirement was reintroduced in various regions of the USA. And new mass tests were reported from China in Wuhan – the city where the corona pandemic was first detected.
Business figures mixed
Meanwhile, the business figures of the companies did not paint such a rosy picture. The pharmaceutical company Eli Lilly & Co. earned a little less in the second quarter, but implemented more than expected. The price climbed 3.8 percent. The titles of the oil company Conocophillips were found to be 2.3 percent firmer. The company reported an unexpectedly high profit for the second quarter. Marriott International lost 1.5 percent, although the hotel operator has presented clearly improved business figures. But with the proceeds, analysts had hoped for more.
at Take-Two (-7.7%) went better than expected in the first quarter of the business year, but the provider of online games only reiterated its outlook. The actions of the Chinese authorities against the gaming sector also weighed on. It also went surprisingly well for Arista, which gained 0.5 percent. According to market observers, statements by CEO Jayshree Ullal about component shortages slowed it down.
Translate Bio jumped almost 30 percent. The French pharmaceutical company Sanofi will buy the US biotechnology company for $ 3.2 billion. Clorox fell 9.5 percent. The consumer goods manufacturer was shocked with a weak development of all things hygiene products and a poor forecast. After returning to profitability, Under Armor rose 6.2 percent.
The dollar index rose minimally on the foreign exchange market. Quotes on the bond market hardly changed after concerns about the global corona situation had initially supported. The gold price turned slightly into the red with the interest in buying on the stock market. The oil prices fell by up to 0.9 percent. Currently, concerns of weak demand due to the corona development predominate, especially in the important customer country China, it said. Weaker demand meets increasing funding from the oil cartel Opec.
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