NEW YORK (dpa-AFX) – At the start of a week full of company reports, a weak start on Wall Street is expected on Monday. The broker IG estimated the Dow Jones Industrial half an hour before the start 0.38 percent lower to 30,877 points. Before that, there were mostly significant price gains in Asia, but in Europe the most important indices had clearly slipped into the red after a robust start. On the technology-heavy Nasdaq stock exchange, the trend on Monday could look better with a positive start.
At the beginning of the week, investors are still avoiding the risk after the most recent price records of all major US indices, especially with regard to the cyclical standard values outside the technology sector that have recently performed well. After the recent rise to 13,272 points, the Dow had already retreated on Friday. So now investors are continuing to take money off the table, before current quarterly figures are expected in the coming days for almost half of the stocks listed in the leading index.
The corona crisis, which remains like a sword of Damocles over the stock markets, continues to dampen sentiment. In Europe, travel values, and airline shares in particular, came under heavy pressure because there was massive international pressure for additional restrictions on travel. For example, US President Joe Biden will renew the entry ban for foreigners from Europe on Monday. Papers from United, Delta and American Airlines were traded up to 1.6 percent lower.
As far as the agenda of the company reports is concerned, however, it remains quite empty on Monday. Only on Tuesday did the Dow 3M, Johnson & Johnson, American Express, Verizon and Microsoft come up with their reports – plus two former index members, Raytheon and General Electric.
Pre-market gains of 2.7 percent are emerging at Apple, which could contribute to a better mood on the Nasdaq. The iPhone manufacturer will not present its figures until Wednesday after the market closes, but investors and experts are apparently already positioning themselves optimistically. It was considered helpful that the experts from the analysis house Wedbush believe that the papers with a target of 175 dollars have a lot of unbeaten potential.
There was also news from the vaccine front. The shares of Merck & Co were traded 1.3 percent weaker before the IPO because the US pharmaceutical company suffered a setback in the race for more hope. An ongoing program to develop a vaccine will be terminated due to weak data, announced the US company.
At the computer games retailer GameStop, the latest price spectacle is currently going on unabated. Before the trading day, the shares on the Nasdaq shot up again by 45 percent after they had already gained more than half last Friday. For fear of an imbalance, they were still at a historic low in the summer of 2020, but for a few days they have not stopped with a sudden record level that is now likely to rise near $ 100. They have increased fivefold within two weeks. In the market, this is justified on a large scale with short coverings. / Tih / jha /
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