Monday, April 5th, 2021
US indices are driving good data
Dow Jones hits new high
On Wall Street, good economic data is giving investors access again – and the Dow Jones and the S&P 500 promptly climb new record highs. Tech stocks are doing well, especially Tesla.
Surprisingly strong domestic economic data pushed the US stock exchanges steeply upwards. The Dow Jones Index and the S&P 500 marked new record highs on the first day of trading after the long Easter weekend. The labor market data published on Good Friday already clearly exceeded the economists’ expectations.
Last month, the US saw the strongest job growth since August. The ISM index for the non-manufacturing sector, published on Monday, also rose unexpectedly strongly to its highest level to date in March. The service sector was particularly hard hit by the corona pandemic due to the closure of restaurants and leisure facilities, among other things and should benefit accordingly if citizens catch up on activities such as dining out or traveling in the coming months that were denied them during the pandemic-induced lockdown.
This increases hopes for a significant economic recovery in the USA. The decline in US industrial orders in February was negligible. Of the Dow increased by 1.1 percent to 33,527 points. Of the S&P 500 and the Nasdaq Composite gained 1.4 and 1.7 percent. The upward trend was led by the communications and technology sectors with average gains of 2.3 percent each. Energy stocks were the weakest sector. They followed oil prices down and lost an average of 2.4 percent.
Dollar falls behind according to economic data
Of the U.S. dollar showed after the strong US economic data with taxes. The dollar index lost 0.5 percent. In view of the economic optimism, the dollar was no longer in demand as a “safe haven”, it said. However, the trade was extremely thin. At the Bond market the returns came back a little. Here market participants spoke of falling bets on increasing returns. It went significantly down with the Oil prices. On the one hand, they were weighed down by the decision of OPEC last week to lift the current restrictions on delivery. There are also indications that more Iranian oil is coming back onto the market despite the US sanctions, traders reported.
gold was not in demand in the optimistic environment. However, the weaker dollar and slightly lower bond yields prevented prices from falling sharply.
Tesla shares with a strong plus
For the Tesla stock it went up 4.4 percent. The electric car manufacturer delivered around 184,000 electric vehicles worldwide in the first quarter, exceeding the forecast of the analysts, who had only expected sales of around 168,000 vehicles. The course of the Google mother alphabet advanced 4.2 percent. In the legal dispute with Oracle (+ 3.3%) over the programming language Java, Google won a legal victory. The Washington Supreme Court ruled that Google’s use of Java did not violate copyright law.
The Facebook share climbed 3.4 percent to a record high. She was thus unimpressed by bad news: The data of more than 500 million Facebook users who were captured in 2019 were published on the Internet in a hacker forum. Facebook said it wasn’t a new problem. “We discovered and solved the problem in August 2019.”
Also on Amazon (+ 2.1%) ran away from criticism of the way the group dealt with its employees. The Apple stock gained 2.4 percent. The South Korean LG Electronics plans to give up its loss-making mobile phone division this year. The division recently made up around 8 percent of sales, but has posted losses for around six years. Game stop lost 2.4 percent after the video game retailer announced it would sell up to 3.5 million shares in order to benefit from the sharp rise in share prices since the beginning of the year.
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