Good news from the US service sector is giving the markets tailwind. For the tech index Nasdaq it is even enough to reach a record high. Otherwise, Disney drives the Dow Jones to a clear plus.
The momentum from the late previous day's business on Wall Street has continued. Of the Dow Jones index Supported by Walt Disney rose 1.4 percent to 27,202 points S&P 500 won 0.6 percent. Of the Nasdaq composite rose over 11,000 points for the first time and gained 0.5 percent. The 2,010 (Tuesday: 1,905) course winners were matched by 976 (1,083) losers. 76 (77) titles closed unchanged.
The recent surge in prices was fueled by good news from the US service sector. The corresponding purchasing manager indices (PMI) from ISM and Markit gave a positive surprise. They quickly made them forget the little damper the market had initially received from very weak labor market data. According to the accounting service provider ADP, far fewer new jobs were created in the private sector in July than had been hoped for compared to the previous month. The background to this is rising numbers of infections and new closures. However, the market hopes that the data will increase the likelihood of new fiscal and monetary measures.
In this context, investors are relying on negotiations to extend corona aid in the US Congress. Republicans and Democrats still haven't reached an agreement, but Treasury Secretary Steven Mnuchin gives hope of an agreement by the end of the week. "What we've seen so far is a decoupling of economic activity and infection rates. In the future, economic activity and infection rates will be much more closely linked," said investment strategist Altaf Kassam from State Street Global Advisors.
New negotiations between China and the United States
In addition, Chinese and Americans plan to meet with high-ranking delegations on August 15 and talk about the “phase one trade agreement” that was passed earlier this year, according to media reports. Here, the implementation seems to be particularly difficult on the Chinese side. But investors hope that the current tensions will also be discussed and are betting on easing.
At the Bond market prices fell after the surprisingly strong purchasing manager indices and with the good mood on the stock market. Yields rebounded from their second lowest level at the end of the year. The yield on ten-year US government bonds rose 4.3 basis points to 0.55 percent.
Of the U.S. dollar fell significantly, the ICE dollar index lost 0.6 percent. Convincing company figures and the hope of new economic aid would have dampened investors' interest in supposedly safe havens, including the dollar, said foreign exchange traders.
Gold price doesn't stop
The record hunt at Gold price continued. Another all-time high was hit at $ 2,056 an ounce. In late trading, the gold price stood at $ 2,038, 0.9 percent above the previous day's level. The weakness of the dollar, fear of a second wave of corona, heightened tensions between the United States and China, and the failure to reach an agreement on a new aid package in the United States so far drove further. In addition, fears that only excessive debt can prevent the crash of the US economy are still high, the trade said. The US is expected to raise approximately $ 2 trillion in debt in the second half of the year. Some participants attributed the sharp rise in the price of gold to the explosion in Lebanon.
oil meanwhile jumped to a five-month high. The barrel price for US light oil of the grade WTI rose 1.2 percent to $ 42.19, the European reference oil of the variety Brent 0.7 percent to $ 45.17 a barrel. Traders pointed to the significant drop in inventories in the United States, according to data from the private American Petroleum Institute. The official government data supported the development. These, too, showed a significantly stronger decline in inventories than predicted.
Among the individual stocks rose Disney by 8.8 percent. The corona pandemic is affecting the entertainment group's business to a significant extent. Disney therefore lost nearly $ 5 billion in its third quarter. The numbers did not seem to surprise investors, however, many had expected worse.
Monster Beverage rose by 6.5 percent. The beverage company has exceeded expectations. Video game maker Activison Blizzard has also beaten the forecasts for earnings and sales. However, the titles fell 2.5 percent. Since the beginning of the year, however, the share has increased by 46 percent.
For the share of Microchip Technology it went down 8.2 percent. It is true that earnings and sales figures in the first quarter of the fiscal year were better than expected. However, the outlook for the second quarter of the business year remained muted compared to expectations.
CVS Health lost 0.9 percent. The pharmacy chain increased earnings more than expected in the second period and increased the outlook. However, there seem to be problems with the corona tests. In this regard, the company is the largest provider in the country. Critics criticize the duration of the test results.
Biggest loser in the Dow were Walmart with minus 1.4 percent. The head of the group's health division, which Walmart wanted to significantly expand by setting up its own medical practices in its branches, is leaving the company this week.
. (tagsToTranslate) Stock Trading (t) Wall Street