"Purely speculative optimism": Wall Street investors are picking up again

At the end of last week there were still losses on Wall Street, now the world looks different again. The big winner of the day is the battered aircraft manufacturer Boeing, but a German company is also a big plus.

After the heavy losses on Friday, Wall Street has already struggled again at the beginning of the week. However, at the start of trading, the indices were still well below their closing levels because the environment remains volatile. On the one hand, investors are still worried about new Covid 19 outbreaks – in the United States, new infections are growing rapidly again – on the other hand, monetary policy easing by central banks worldwide and the diverse stimulus programs coupled with a gradual economic recovery in some countries are continuing for hope that the global economy will recover soon.

Upcoming house sales, which rose by a record 44 percent in the US in May, brought a positive surprise, while experts had only expected an increase of 15 percent.

Nevertheless, doubts about a fundamental recovery remain. "The market is playing speculative optimism – more than ever in my career," said Philip Blancato, President of Ladenburg Thalmann Asset Management.

Of the Dow Jones index won 2.3 percent to 25,596 points, mainly driven by double-digit Boeing profits. Of the S&P 500 rose 1.5 percent for that Nasdaq composite it went up by 1.2 percent. There were a total of 2,175 (Friday: 443) course winners and 832 (2,550) losers. 46 (46) titles closed unchanged.
"Volatility remains high, which shows that the level of fear remains very high," said Sebastien Galy, macro strategist at Nordea Asset Management. Steen Jakobsen, chief economist at Saxo Bank, also points out that large fund managers rebalanced their portfolios in view of the end of the month and quarter.

Boeing will benefit from 737 MAX hopes

Below the individual values ​​rose Facebook by 2.1 percent after initially lagging behind the market. In the face of hate and agitation on the Internet, the Starbucks cafe chain now wants to forego advertising on Facebook and other online networks. "Our concern is to bring communities together – in person and online. We stand against hate speech," said the US company. Last week beverage maker Coca-Cola and consumer goods giant Unilever announced similar steps. Starbucks advanced 2.7 percent.

Boeing bullish by 14.4 percent. More than a year after the worldwide flight ban for the Boeing 737 MAX passenger aircraft, the US air traffic control agency FAA appears to be about to approve a first test flight of the revised aircraft.

Biontech rose 5.9 percent after a private placement. The Temasek state fund from Singapore, among others, has invested in the German biotech company that is developing a Covid-19 vaccine.

Amazon has reported over $ 500 million in bonus payments to employees and contractors in June. This adds up to $ 1.3 billion in special payments from the corona pandemic for workers on the delivery front, according to a spokeswoman for an additional $ 800 million paid as of May 30. The stock lost 0.5 percent.

Oil prices benefit from data from China

The Oil prices listed firmer – despite the high number of infections in the USA. Traders referred to positive economic data from China, the world's largest oil importer. There, industrial profits rose again in May by 6 percent compared to the previous year – the first increase this year. The US variety WTI gained 3.0 percent to $ 39.63 a barrel, Brent increased 1.2 percent to $ 41.52. The bankruptcy filing filed by Chesapeake Energy on Sunday barely weighed, even though the company was the "undisputed master of US shale gas," as Magnus Nysveen, chief analyst at Rystad Energy, said.

At the Foreign exchange market it was changeable. First, the dollar gave way with the rapidly increasing number of new infections. The euro benefited from the Franco-German government consultations. Forex traders spoke of hopes of a rapid economic recovery in the eurozone. During the course of the day, the greenback almost completely made up for the losses. The ups and downs correspond to the volatility on the stock market and reflect the uncertainty of investors, it said. Of the Euro quoted at $ 1.1238 after a daily high at around 1.1290.

Supposedly "safe havens" like gold or US bonds were not sold despite the good mood on the stock market. This shows that investors are by no means confident in their optimism, participants said. The price for that Troy ounce of gold remained unchanged at $ 1,772. At the Bond market the yield on ten-year US bonds fell 1.1 basis points to 0.63 percent with prices rising slightly.