Friday 23 July 2021
Record hunt on Wall Street
US stock exchanges hit all-time highs
The reporting season is going extremely well, driving Wall Street to all-time highs. Only in the last few minutes of trading does the Dow Jones Industrial break the record – Nasdaq Composite and S&P 500 even before that. The shares of Snap cause a sensation. The gold price, on the other hand, is weakening.
After a day of breathing, the traffic lights on Wall Street have turned green again. The Dow Jones Index, S&P 500 and the Nasdaq indices marked new record highs – the Dow also closed above the 35,000 mark for the first time. The buying mood was fueled by the reporting season, which was very much to the taste of the stock exchange traders, with strong results for most companies.
Of 110 companies from the S&P 500 that have reported so far, 85 percent had outbid the market’s profit forecasts. the Dow Jones Index climbed 0.7 percent to 35,062 points, S&P 500 and Nasdaq composite each increased by 1.0 percent. According to initial information, there were 2035 (Thursday 1054) course winners and 1270 (2246) losers on the Nyse. 118 (139) titles closed unchanged.
“We have a reporting season that is going extremely well,” said Principal Global Investors’ chief strategist Seema Shah. In addition, the corona pandemic had lost some of its horror. Market participants assumed that governments in the US and Europe were unlikely to enact closures that limited growth – despite rising case numbers.
Even weak economic data slowed Wall Street only briefly: The growth of the US economy had slowed in July. The composite index for production in the private sector compiled by IHS Markit fell, but remained in the area indicating growth. The purchasing managers’ indices for the manufacturing industry and the service sector failed to meet market expectations in some cases quite significantly. “The mentality to buy into weakness is intact and healthy,” said Putnam Investments’ market strategist Jason Vaillancourt, explaining the market reaction to the data.
Honeywell and Amex about expectations
The technology group was among the reporting companies Honeywell more confident for the full year after a strong second quarter. However, the aerospace division had performed weaker than expected. The stock was 1.5 percent cheaper, partly because the company continued to admit problems with the supply chain. American Express (+ 1.3%), however, exceeded the earnings forecasts.
the Intel-Turnover sank minimally, profits rose slightly, whereby both indicators exceeded expectations. However, Intel disappointed with the outlook. Intel crashed 5.3 percent. The business figures for Twitter (+ 3%) added. The operator of the short message service of the same name exceeded expectations with all key figures.
The responded with a price jump of 23.8 percent Snap-Share on the financial statement of the social media company, which more than doubled its sales in the second quarter. Kimberly-Clark turned 0.5 percent up, the hygiene product manufacturer had lowered the forecast. The exchange rate outlook was confirmed.
The sheen of the gold is fading a little
the dollar showed that it was slightly strengthened, the dollar index gaining 0.1 percent. The euro-dollar pair, however, moved little. That left the Euro at the lower level that he had taken the day before after the deaf statements of the ECB.
the Gold price faltered and was back at the $ 1,800 mark. On a weekly basis, the precious metal was 0.7 percent cheaper – burdened by the run in risky assets. Practically nothing happened on the bond market over the course of the day.
Little movement on the oil market either: The Oil prices tended slightly higher. The upward movement came to an end after three fixed days. “Traders are unsure whether the latest decisions of the Opec + group are bullish or bearish,” said an energy analyst.
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