Monday, July 12, 2021
While Wall Street is chasing records
Virgin stocks crash after space flight
The shares of Virgin Galactic benefit only briefly from the successful all-excursion of company founder Richard Branson. Shortly afterwards, the course collapses significantly. That being said, the mood on Wall Street is great. The major indices are setting new records.
The day before the start of the US accounting season Wall Street continues its record hunt. The Dow Jones the standard value closed 0.4 percent higher to 34,996 points. The technology-heavy one Nasdaq advanced 0.2 percent to 14,733 points. The broad one S&P 500 gained 0.3 percent to 4384 points. All three market barometers marked new records.
“The business figures will be quite informative and generally quite good,” forecast portfolio manager Sandy Villere from asset manager Villere & Co. However, the current prices signaled high expectations. Therefore, profit-taking has to be expected every now and then. The banks JP Morgan and Goldman Sachs open the numbers on Tuesday. Their shares gained up to 2.4 percent.
Investors were also eagerly awaiting the US inflation data on Tuesday. Experts expect a slight year-on-year decline to 4.9 percent in June. If the numbers were higher, speculation that the economy was going too hot would flare up again, warned Art Hogan, chief investment strategist at asset manager National Securities.
All-push helps Virgin only briefly
Equity investors denied a planned capital increase Virgin Galactic the joy of a successful test flight by the space company. At the weekend, company founder and billionaire Richard Branson, according to his own statements, ushered in a new era of commercial space travel with his personal foray into space. Against this background, the company wants to issue new shares with a volume of $ 500 million. Virgin Galactic’s titles plummeted more than 17 percent after initial gains.
Investors were also nervous about the ongoing high regulatory pressure exerted by the Beijing government on Chinese companies that are listed on the US stock exchange. According to insiders, the Spotify rival is supposed to be Tencent Music Entertainment (TME) under pressure from the competition authority SAMR, give up his exclusive contracts with Universal Music, Sony Music or Warner Music. TME wanted to prevent competitors from being able to offer pieces by stars of these labels as a music stream. TME notes fell more than four percent.
DouYu and Huya slipped by up to 8.8 percent after the SAMR banned the planned multi-billion dollar merger of the two streaming services specializing in video games. TME parent Tencent has a stake in both companies.
.