Tuesday, November 16, 2021
US stock exchanges close in positive territory
Economic data ensure an upswing
Good mood on Wall Street: Rising retail sales and a recovery in industry mean that major US stock indices are up. Microsoft’s shares hit a record high among technology stocks.
Robust US economic data have given Wall Street, which was still sluggish at the beginning of the week, some fresh momentum. The most important stock indices all closed in positive territory. Among other things, the fact that the retail sector expanded its sales more strongly than expected in October created a good mood, particularly in the economically sensitive tech sector. In addition, the industry has surprisingly recovered significantly from the aftermath of the severe Hurricane Ida.
Of the Dow Jones Industrial gained 0.15 percent to 36,142.22 points. The US leading index had reached a record level of 36,565 points at the beginning of the previous week after a four-week rally of around 7.5 percent. For the broad-based S&P 500 it went up 0.39 percent to 4700.90 points. Its peak is now within reach.
The technology-heavy one Nasdaq 100 rose by 0.75 percent to 16,309.77 points. This last came back from its record at 16,454 points after a course chase by over 13 percent. Stockbrokers are also relieved that a video summit by US President Joe Biden and China’s head of state and party Xi Jinping went well. Biden emphasized that the competition with China should not degenerate into a conflict and Xi was also positive. Under Biden’s predecessor, Donald Trump, the relationship was very tense.
Profits for Home Depot and Microsoft
On Wall Street, the shares had Home Depot reached a record high in the course of trading. The DIY chain continues to benefit from the DIY boom in the corona pandemic. Sales and profit exceeded expectations. The papers finally went out of trading at the top of the Dow, up 5.7 percent. The shares of Walmart but fell 2.6 percent. The largest US retailer is assuming strong Christmas sales and increased its profit forecast after a good third quarter overall. However, high costs, for example for the expansion of staff and delivery infrastructure, caused profits to collapse.
Among the technology stocks, the shares reached Microsoft a record high and in the end gained around one percent. Fresh impetus came from a study by Bank Credit Suisse. The software company’s valuation and market expectations still do not adequately reflect growth and profitability, wrote analyst Philip Winslow.
At the top of the Nasdaq 100, stocks rebounded from Peloton a little bit from their most recent price slide and rose 15.5 percent. The fitness equipment specialist has apparently been able to reassure investors with the announcement of a capital increase after the company cut its sales forecast at the beginning of November. With the lifting of the corona restrictions, the business of connected training bikes, which cost several thousand dollars, is becoming more difficult. Bank of America analyst Justin Post meanwhile took the view that the market’s expectations for the development of the number of subscribers were too pessimistic.
Of the Euro remained under pressure amid robust US data, most recently trading at $ 1.1313. The European Central Bank had previously set the reference rate at 1.1368 (Monday: 1.1444) dollars. Of the dollar had thus cost 0.8797 (0.8738) euros. On the bond market, the futures contract for ten-year Treasuries (T-Note-Future) fell 0.12 percent to 130.14 points. The yield on ten-year government bonds was 1.64 percent.