Wednesday, June 9th 2021
Wait for inflation to develop
Wall Street remains in wait
With inflation data not yet available, most investors prefer to stay on the sidelines. New targets from a large logistics company are not well received by investors, and a US health insurer is causing spectacular ups and downs.
Investors did not venture out of cover prior to US inflation figures. The leading index Dow Jones Industrial closed 0.44 percent lower at 34,447.14 points. May consumer prices will be published on Thursday. In April, inflation in the USA had risen sharply. Experts expect that the upward price trend has even accelerated again recently. There is currently much discussion among investors about how sustainable the price increase is – and to what extent this is putting pressure on the US Federal Reserve in its extremely loose monetary policy. “Should the price jump turn out to be significantly higher than expected, this could hit the stock exchanges seriously,” said portfolio manager Thomas Altmann from QC Partners, referring to the US inflation data.
The one representing the broad market S&P 500 fell 0.18 percent to 4219.55 points. The technology-heavy selection index Nasdaq 100 closed 0.03 percent up at 13,814.94 points. At the top of the Dow, the papers of Merck & Co sat with a plus of 2.3 percent. The US has secured commitments for its Covid-19 investigational drug molnupiravir in a billion-dollar deal with the pharmaceutical company. If emergency approval is granted, around 1.7 million units of the antiviral agent will be delivered – with an equivalent of around 1.2 billion dollars.
New targets did not come off well with investors UPS for the year 2023. Until then, the logistics group wants to increase sales significantly. The share price still lost a good four percent. Brokers justified this with a disappointed target for profitability on the home market and with a lack of statements about cost savings. In the wake of UPS, the paper of the counterparty Fedex also fell by a good three percent.
Price gains canceled investors in the shares of the health insurer Clover Health one, they sagged by almost 24 percent. The day before, they had jumped 85 percent. One reason for such sharp swings is seen as the fact that the rally is cornering other speculators who were betting on falling prices for stocks. The shares of the TV satellite operator Dish Network lost more than seven percent. The bank JPMorgan advised to sell the shares and justified this with the challenges of building a wireless network and a low frequency spectrum of the company.
The euro lost initial gains and closed Wall Street at $ 1.2175. The European Central Bank had set the reference rate at 1.2195 (Tuesday: 1.2182) dollars. The dollar had thus cost 0.8200 (0.8209) euros. Treasury bond prices rose on the US bond market. The futures contract for ten-year Treasuries (T-Note-Future) rose by 0.29 percent to 132.76 points. The yield on ten-year bonds fell accordingly to 1.49 percent.
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