After the record slump in GDP in the USA, the situation on the stock markets looks somewhat friendlier again. Above all, the good numbers of the tech giants ensure a plus. Apple makes a split announcement.
Wall Street has recovered from strong initial losses at the end of the week and closed with premiums. The sentiment was supported above all by the convincing business figures of the technology heavyweights. This resulted in a moderate recovery from the previous day's levies, when disastrous US GDP had weighed on the market in the second quarter. However, the negative factors remained, with the further increase in corona infections and the waning hope of a rapid economic recovery.
The technology sector showed strong profits after convincing quarterly figures for the sector heavyweights. Because Amazon (plus 3.7 percent), Apple (plus 10.5 percent) and Facebook (plus 8.2 percent) surprisingly positive with their quarterly figures after the closing bell on the previous evening. Apple even rose to a new record high.
The iPhone manufacturer is one of the winners of the corona crisis, which brought with it a strong demand for apps and devices for working from home. Apple also announced a four-to-one stock split. Online retailer Amazon also did good business during the pandemic, earning more than expected in the second quarter. Facebook roughly doubled its profit in the second quarter, beating expectations.
Things weren't going so well for the Google mother alphabetwhose advertising revenue fell 8 percent in the second quarter. It was the first decline in the company's history. The price fell by 3.3 percent. "The technology companies are giving us a potentially distorted picture of the stock markets," said Rabobank currency strategist Jane Foley. Traders pointed out that technology stocks have a life of their own in the crisis and even tend to benefit from it.
Of the Dow Jones index gained 0.4 percent to 26,428 points and closed just below the daily high. In the low it had already dropped to 26,014 points. Of the S&P 500 index increased by 0.8 percent to 3,271 points. For the Nasdaq composite it rose 1.6 percent to 10,745 points. There were a total of 1,081 (Thursday: 1,020) course winners and 1,912 (1,953) losers on the Nyse. 73 (91) titles closed unchanged.
Corona pandmia and US politics continue to weigh on the economy
Investors also worried about a possible second wave of coronavirus. Added to this were further disastrous GDP data from the second quarter, this time from Europe. The economy in the euro zone shrank in the second quarter by 12.1 percent compared to the previous quarter – a historic crash.
In addition, the indecisiveness of the US parties continued to weigh on agreement on a new aid package. Time was short – the previous regulation expires on Saturday night. To make matters worse, US President Donald Trump put a possible postponement of the presidential election into play. This did not rule out a deepening of the political divisions up to a constitutional crisis.
The economic data of the day did not set any accents. The mood among US consumers weakened more clearly than expected in July. In contrast, the mood among purchasing managers from the Chicago area grew more strongly in July than forecast.
Dollar is recovering slightly
On the foreign exchange market, the dollar initially continued to weaken. Of the Euro Listed above $ 1.19 in the morning for the first time since May 2018, but then came back more clearly with profit-taking and was in late US trading $ 1.1780. While the US is still haggling over the extension of corona aid, Europe has done its homework, it said. The dollar index was up 0.5 percent in a recovery move.
The overarching dollar weakness supported the Gold price. The troy ounce made up its losses over the course of the day, gaining 0.8 percent to $ 1,974. At 1,984, the precious metal marked a new all-time high. Subsequently, there were slight profit taking, it said. Concerns about the consequences of a possible second corona wave and the flood of money from central banks and governments provided further potential for the precious metal, according to one observer.
At the US bond market did little, the prices largely stagnated, giving up their previous profits. The yield on ten-year paper lost 1.8 basis points to 0.54 percent.
The Oil prices were slightly supported by compelling data from China. These gave hope for a recovery in the crippling demand for crude oil, it said. The next round of funding cuts for the Opec + group will also begin on Saturday. US light oil of the grade WTI won 1.3 percent for $ 40.42, for Brent it went up 0.9 percent to $ 43.32.
Exxon fall by quarterly numbers
Exxon Mobil recovered their losses from the course of the trade and gained 0.5 percent. The oil company publishes losses above market expectations. Fiat Chrysler also slipped into the red in the middle of the Corona pandemic in the second quarter. However, North America performed better than its US competitors, with titles falling by 3.3 percent.
ford registered a discount of 1.9 percent, although the quarterly loss of the automotive group was not as drastic as feared. In addition, Ford was more optimistic for the third quarter than analysts had expected.
The US construction equipment manufacturer Caterpillar lost revenue and earnings in the second quarter due to the impact of the corona pandemic. However, market expectations were exceeded. The stock lost 2.8 percent.
. (tagsToTranslate) Wall Street (t) stock trading