Wall Street in the red
Trump Media shares fall after TV debate
28.06.2024, 22:45
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The TV duel between Biden and his Republican challenger is also a topic of conversation on the US stock exchanges. While Trump is convincing TV viewers more than the incumbent president, the same is not true for his company’s shares. Overall, Wall Street is closing lower.
The US stock markets closed lower at the end of the trading week. Dow Jones Index closed 0.1 percent lower at 39,123 points. The S&P 500 fell by 0.4 percent, while the Nasdaq Composite fell by 0.7 percent. There were a total of 1,625 (Thursday: 1,698) price winners and 1,199 (1,113) losers. 55 (81) titles closed unchanged.
Published economic data showed both light and shadow. The US Federal Reserve’s preferred price measure, the personal expenditures price index (PCE deflator), rose by 2.6 percent in May, as economists had predicted by consensus, after a rise of 2.8 percent in April. Personal income, published at the same time as the PCE price index, rose slightly more than expected last month, while personal expenditure rose slightly less.
Trump Media in decline
The mood of purchasing managers in the Chicago area has brightened in June. The indicator rose to 47.4 points. In May, the index stood at 35.4 points. Economists had expected a value of 40.0 points. Given the already strong US economy, this has counteracted the hopes of interest rate cuts that have arisen due to the declining inflation, the market also said. Meanwhile, the mood of US consumers weakened in June.
The main topic of conversation, however, was the presidential election campaign in the USA. In the first direct television debate, President Joe Biden did not generally make a good impression against his challenger Donald Trump, who is generally seen as more business-friendly. Within the Democratic Party, doubts are now growing as to whether Biden, given his advanced age, is the right candidate. The shares of the company founded by Donald Trump TrumpMedia Meanwhile, they closed with heavy losses of 10.9 percent after initially starting trading with premiums.
Bond yields rise sharply – dollar little changed
At the US bond market Yields initially fell with the publication of economic data, but then turned upward again. The yield on 10-year bonds rose significantly by 10.5 basis points to 4.39 percent. On Foreign exchange market The dollar remained stable. The dollar index was barely changed.
The Oil prices were slightly lower after the significant increases the day before. The price of WTI fell by 0.3 percent. The Brent price remained at the previous day’s level. The day before, hopes of higher demand in the holiday season had supported prices.
The Gold price fell moderately. The price of a troy ounce fell only slightly by 0.1 percent despite rising market interest rates. The precious metal was thus able to largely maintain the significant gains from the previous day.
Nike give in
Nike issued a sales warning. The sporting goods manufacturer sees sales falling by 10 percent in the current first quarter. Revenues in the fourth quarter, which has just ended, shrank and failed to meet expectations. Nike shares fell by 20 percent. The competitor’s share price Under Armour fell by 2.6 percent. The sports shoe retailer’s share Foot Locker fell by 2.4 percent.
Accolade fell by 44 percent. The healthcare provider issued a disappointing outlook. Infinera rose by 15.8 percent. Nokia is buying the network solutions provider for $2.3 billion, which represents a significant premium on the previous share price.
You can find out more about today’s stock market events here.