Wall Street takes a break: IBM and Intel stall the engine

Wall Street is taking a break
IBM and Intel stall the engine

The new US President Biden is determined to start work, but the Senate is not waving the gigantic stimulus package through so quickly. After the record hunts of the last few weeks, investors on Wall Street are taking a break.

High price losses of Intel and IBM according to the business figures of the two tech giants have stalled the upward pressure on Wall Street. While IBM disappointed investors with a weak cloud business, investors at Intel took price gains after the chip manufacturer's strong figures. The leading US index Dow Jones Industrial, which contains both titles, lost 0.57 percent to 30,996.9 points. On a weekly basis, there is an increase of 0.6 percent. The driving force behind the latest rally, the technology-heavy one Nasdaq 100, closed 0.29 percent in the red at 13366.4 meters. The market breadth S&P 500 also fell slightly by 0.30 percent to 3841.4 points. The day before, all three of the above stock market barometers had soared to new record highs.

There were actually reasons for investors to be cautious: Hopes for vaccinations were slightly dampened. According to Anthony Fauci, director of the National Allergy and Disease Institute, new data showed that currently available vaccines may be slightly less effective in fighting the corona pandemic. In addition, US President Joe Biden's trillion dollar stimulus package encountered initial resistance in the Senate. Analysts already had doubts that Biden would easily get his proposals through the Senate. "With a shortage of new ammunition, investors just stop buying," said investment strategist Lars Skovgaard Andersen of Danske Bank Wealth Management.

Intel 46.59

However, positive economic data prevented the stock market from slipping more sharply: activity in the US economy had accelerated in January, as the composite index for production in the private sector – industry and service providers combined – revealed by IHS Markit. Manufacturing and service sectors fared better than expected. The data on sales of existing houses were also positive.

IBM and Intel on the downside

IBM
IBM 97.82

The Dow was burdened by the downward slide Intel and IBM: Intel surpassed expectations with record sales, but failed to provide an annual outlook due to various imponderables. At IBM, sales fell more than expected in the fourth quarter, while profits were better than estimated. The annual profit was still in decline for the seventh year in a row. The Intel share fell 9.3 percent – IBM fell 9.9 percent. The technology sector in particular has been doing well recently.

Schlumberger turned 0.9 percent. The oil field supplier had earned more in the fourth quarter of 2020 – despite a decrease in sales by a third. The railway operator's papers CSX fell 4.3 percent. CSX had done a tad better than expected in the fourth quarter only thanks to cost reductions. Dealers complained that the operational development was not so rosy.

GameStop Corporation
GameStop Corporation 55.47

The shares of Game stop shot up another whopping 51.1 percent. The video game retailer's titles were poised to rack up the highest monthly premiums of all time. Currently, the value has already increased 220 percent. The historic price surge was explained by a flood of market participants scrambling to push the value higher, according to a report on the popular social platform Reddit.

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