Thursday October 14, 2021
Tech companies big winners
Wall Street is looking up again
In particular, the rise in profits at US banks is boosting prices on Wall Street. Tech stocks are also popular, as they are doing well. And oil companies can also record a hefty plus due to the price increase. Boeing, on the other hand, is one of the losers – because of the Dreamliner debacle.
Encouraged by the bubbling corporate earnings, Wall Street equity investors have grabbed hold of it. Of the Dow Jones Index the default value gained 1.6 percent and stands at 34,912 points. Of the S&P 500 gained 1.71 percent to 4438.26 points. For the tech-savvy Nasdaq 100 it went up 1.88 percent to 15,052.42 points. “Investors have generally looked forward to a largely positive earnings season,” said David Swank, portfolio manager at Hood River Capital Management. Overall, it doesn’t look bad so far. The mood on the stock exchanges also brightened up positive signals from the US labor market. The number of initial jobless claims fell last week to the lowest level since the beginning of the Corona crisis in mid-March 2020.
Booming global mergers and acquisitions boosted US money house profits. To JP Morgan The numbers of the rivals were also convincing Bank of America (+ 4.5%) and Morgan Stanley (+ 2.5%), whose shares rose by 3.3 and two percent. Citigroup and Wells Fargo also increased their profits, but investors still cashed in on the paper. Heavyweight tech stocks were particularly popular among investors. Papers from Facebook, Microsoft, Apple and the google mother alphabet gained up to 2.3 percent. “It seems like there is a little fear of missing out,” said investment strategist John Augustine of Huntington Private Bank. But there are buyers on a broad front who come into the market, which indicates a healthy development on the stock exchanges, he added.
Pizza chain with big profits
Despite a drop in sales, investors had an appetite Domino’s pizza. The pizza chain, which is strong in the delivery and takeaway business, is feeling that Americans are eating out more often after the relaxation of the Corona requirements. US sales on a like-for-like basis fell 1.9 percent in the third quarter (as of September 12), while bottom line earnings rose slightly more than expected. The shares were listed 2.5 percent higher. Walgreens Boots Alliance stocks rose just under six percent after the drugstore chain posted fourth-quarter sales and adjusted earnings above estimates.
On the other hand, the news about improperly delivered parts to the aircraft manufacturer caused displeasure Boeing for the 787 Dreamliner model. Boeing papers lost 2 percent in New York. The supplier’s shares Leonardo fell in Milan by around seven percent. The Italian group stated that it was the injured party in the case, as the titanium shares came from a subcontractor. For Boeing, it’s another negative headline. The US air traffic control authority (FAA) certified quality defects in the production process of the 787 to the group in the summer.
Energy companies like Chevron and Exxon Mobil benefited from rising oil prices. The shares were each more than one percent up. The North Sea variety Brent rose 0.7 percent to $ 83.73. “An unexpectedly sharp decline in US gasoline and distillate inventories led to new purchases,” said Kazuhiko Saito, chief analyst at Fujitomi Securities. The International Energy Agency (IEA), meanwhile, warned that a global energy crisis could further fuel inflation and slow the global recovery from the corona pandemic. “Record prices for coal and gas, as well as recurring outages, are driving the power sector and energy-intensive industries to turn to oil to keep lights on and operations going.”