Monday, August 02, 2021
Profits given back
Wall Street closes with slight losses
Wall Street is giving up its short-term gains. The US policy had initially supported. But with data weak across the board, that outlook appears in a different light. Nevertheless, market participants remain optimistic about the stock market.
Wall Street closed a little easier. Profits from early business were mostly given back. Traders pointed to weak data across the board. After construction spending and the revision of the Markit purchasing managers’ index for the manufacturing sector, the much-noticed one also missed ISM index for US industry in July expectations. It revealed that US industrial activity slowed in July.
Weak economic data were also reported from China. The Chinese Caixin purchasing managers index for the manufacturing sector had dropped to its lowest level in 16 months. The Dow Jones index closed 0.3 percent lower at 34,838 points, the S&P 500 was 0.2 percent. The Nasdaq composite, however, gained 0.1 percent. There were a total of 1,501 (Friday: 1,290) course winners and 1,844 (2,021) losers. 125 (121) titles closed unchanged.
The US policy had initially supported. Shortly before its summer break, the US Senate completed work on the legislative text on President Joe Biden’s historic infrastructure package. There is increasing market hope that the Senate will pass the law in a few days. In addition, Fed representative Lael Brainard immediately ruled out monetary policy tightening and only promised them in the medium term. But with the weak data, this prospect appears in a different light.
Nonetheless, market participants remain optimistic about the stock market: “The stars are good for the stock markets, because an excellent earnings season is accompanied by record-low real returns and the hope that Congress will soon exert more fiscal pressure,” said investment analyst Marios Hadjikyriacos from XM.
Dollar weakens as loose monetary policy continues
the dollar tended to weakness with the Brainard statements, the dollar index lost 0.1 percent. The Fed governor currently does not see enough progress to tighten US monetary policy. The labor market will probably only reach an important threshold towards the end of the year. The deaf assessments weighed on the dollar, especially since Fed colleague Neel Kashkari was also deaf.
the Gold price The trend was little changed, tending to be supported by the weak dollar and the prospect of monetary policy remaining loose in the short term. On the other hand, hopes for Chinese stimuli have weighed on the supposedly safe havens of gold and the dollar, it said.
At the Oil market Outweighed the concerns about the weakening economy in China with the new corona lockdowns. In China, the demand for oil could suffer – exactly at the time when OPEC expanded its production, so traders to the falling oil prices. Economic worries in China were also played out on the bond market with rising prices. Yields fell to their lowest level since February.
Square with deal very weak
Square rose 10.4 percent with one transaction. The financial services provider Square is buying the Australian payment service provider Afterpay for around 29 billion US dollars. GE tended to be more than 679 percent higher from a purely visual point of view. The company is doing an 8: 1 reverse stock split. The number of shares outstanding will decrease to 1.1 billion from 8.8 billion as of Monday. According to its own information, the company wants to adapt to the comparison group.
Carnival tended to be 0.9 percent lighter after profits in early business. The cruise line has successfully completed the first cruises after a long Corona break. Walt Disney finally fell by 0.3 percent after surcharges at the start. The film “Jungle Cruise” made a promising debut in North America.
Marin Software fell by almost 14 percent. The specialist for digital advertising reported falling sales in the second quarter and expects further declines in revenues. Vaxart increased by a good 11 percent. The biopharmaceutical company will begin clinical trials for the tablet vaccine candidate against Covid-19 in the second half of the year.
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