NEW YORK (awp international) – After three weak trading days in a row, the leading US index, the Dow Jones Industrial, initially stabilized on Wednesday. The well-received quarterly reports from the heavyweights Procter & Gamble, Morgan Stanley and UnitedHealth provided tailwind.
In the first few minutes of trading, the Dow advanced slightly by 0.40 percent to 35,511 points. In the past few days, high inflation and the associated expectation of a significantly more restrictive monetary policy by the US Federal Reserve had weighed on the stock exchanges.
The market-wide S&P 500 recovered by 0.68 percent to 4609 points. The tech-heavy Nasdaq 100, which had come under more pressure recently, rose 1.09 percent to 15,376 points.
According to stockbrokers, speculation is increasing that the US Federal Reserve could raise interest rates in March by more than the 0.25 percentage point previously expected. It would tackle persistently high inflation in the United States with a higher interest rate hike.
After a strong quarter, the consumer goods giant Procter & Gamble increased its sales target for the fiscal year running until the end of June. In the second fiscal quarter, sales climbed by six percent, exceeding market expectations. Business with household and health products was the main driver. Procter shares rose nearly 4 percent at the top of the Dow.
In the second Corona year, the major insurer UnitedHealth exceeded its profit target, which had been raised several times. Net income attributable to shareholders for 2021 was $17.3 billion, up 12 percent year-over-year. The UnitedHealth papers rose by 2.7 percent.
Investment bank Morgan Stanley did surprisingly well in equities trading in the fourth quarter of 2021. Sales in this segment increased by 13 percent, and analysts had hardly expected any change here compared to the same quarter of 2020. The share price gained 2.1 percent.
Unlike other US financial institutions, Bank of America also ended 2021 with a surprisingly good quarter. Thanks to increased income and the reversal of provisions for loan defaults, the institute earned significantly more than a year earlier. The share price rose by three percent./bek/nas
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