Setback after highs: Wall Street suspends record hunt

Setback after highs
Wall Street suspends record hunting

After new record highs, slightly smaller rolls will be baked on Wall Street on Wednesday. After all, several technology stocks are experiencing a rosy day on the stock market.

The recent record hunt on Wall Street paused midweek. The Dow Jones Inex and the S & P 500 fell slightly after both indices had marked new highs the day before. In contrast, the Nasdaq composite showed little change after strong quarterly figures from Microsoft, the Google parent company Alphabet and Advanced Micro Devices (AMD). Thanks to the reporting season, which has been convincing so far, the upward trend is likely to continue, it said.

The previously presented solid quarterly results would also push inflation and economic concerns somewhat into the background, it said. “While investors fear that higher interest rates, rising inflation and rising energy prices are potential headwinds, the latest indicators reflect economic momentum and support higher equity prices,” said Jonathan Golub, US equity strategist at Credit Suisse Securities.

S&P 500 4,552.88

Of the Dow Jones Index decreased by 0.7 percent to 35,491 points. Of the S&P 500 gave way by 0.5 percent. Of the Nasdaq composite hardly changed at 15,236 points. The 1,001 (Tuesday: 1,498) price winners were compared to 2,336 (1,844) losers. 113 (144) titles closed unchanged. On the economic side, incoming orders for durable goods fell in September. Economists, however, had expected an even more pronounced decline.

Oil prices with a clear setback

They were under pressure Oil prices, after they had recorded the day before at their highest level in seven years. The weekly US oil storage data from the state Information Administration (EIA) had shown a more marked increase than expected. In addition, the nuclear talks with Iran could soon start again. If an agreement is reached, more Iranian oil could enter the market and weigh on prices. However, participants also pointed to profit-taking after the recent surge.

The fell on the foreign exchange market Dollar index by 0.1 percent. Foreign exchange analyst Antje Praefcke from Commerzbank sees the dollar shortly before an “uncomfortable” phase. Ahead of the US central bank meeting next week, the market’s expectations could be unsettled again, so that the greenback could have a hard time making up significant ground against the euro.

Of the Gold price recovered from the previous day’s losses but stayed just below the $ 1,800 mark. The yields on the US bond market posted significant losses. The ten-year yield fell 7.0 basis points to 1.54 percent. It has been around 1.60 percent for almost a month. Higher inflation “is no longer driven by just a handful of one-off factors,” said Capital Economics. The eyes are now already on the meeting of the US Federal Reserve in the coming week.

Convince technology companies

Microsoft 323.17

The software giant Microsoft started the new financial year with a new record and is also optimistic about the second quarter, which is already underway. The trend towards home offices is providing a tailwind, which is why the cloud business once again achieved strong growth. The demand for the Xbox video console is also boosting the group. The stock was the Dow’s biggest winner, up 4.2 percent.

The Google parent company alphabet (+ 5.0%) almost doubled its profit in the third quarter and set a new sales record. The share reached a new record high over the course of the year. The chip company Advanced Micro Devices (AMD) clearly exceeded expectations in the third quarter and once again raised the sales outlook for the full year. The share had also reached a new all-time high over the course of the year, but ultimately lost 0.5 percent.

Texas Instruments (-5.1%) exceeded the analysts’ expectations on the profit side with the results for the third quarter, while sales remained slightly below the market estimates. Bottlenecks in semiconductor parts and supply chain problems made the group to create. Twitter (-10.8%) slipped into the red in the third quarter despite strong sales growth. The reason for this is a one-time expense to settle a legal dispute from 2016.

For the VisaShare was down 6.9 percent. The credit card provider exceeded analysts’ estimates with its figures for the fourth fiscal quarter, but the outlook for 2022 fell short of expectations. the BoeingShare lost 1.5 percent. While business with commercial aircraft grew in the third quarter by 24 percent – here analysts had nevertheless expected 1.3 billion dollars more revenue – sales in the defense, space and security sector fell by 3 percent, again a little more than feared.

The soft drink manufacturer Coke (+ 1.9%) exceeded analyst expectations in the third quarter of 2021 and raised its profit forecast for the full year. Higher prices in US operations and the lifting of Covid-19 restrictions abroad have boosted sales by MC Donalds inspired. The share gained 2.7 percent. GM has become more optimistic for the full year despite a decline in earnings in the third quarter. However, the decline in profits was not as severe as feared. In terms of sales, however, the group disappointed market expectations. The chip shortage in the sector was also troubling GM. The share lost 5.4 percent.

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