NEW YORK (awp international) – On Tuesday, the US stock exchanges increased their slight losses from the previous day, in some cases significantly. Threats from China over US leader Nancy Pelosi’s visit to Taiwan weighed on sentiment. In addition, the regional central bank governors of San Francisco and Chicago said that the fight against inflation is far from over.
The Dow Jones Industrial ended trading down 1.23 percent to 32,396.17 points, slightly above its daily low reached just before. The market-wide S&P 500 lost 0.67 percent to 4091.19 points. The Nasdaq 100 fell 0.30 percent to 12,901.60 points.
China has reacted angrily to the first senior US political visit to Taiwan in 25 years. The communist government sees the democratic island nation as part of the People’s Republic of China. Shortly after Pelosi’s landing in Taipei, Beijing spoke of a “very dangerous game with fire” and announced maneuvers with target practice in six sea areas around the democratic island republic.
The stock exchange reacted quite calmly to the trip by the chairmen of the US House of Representatives, summed up a market observer. “Of course, if China overreacts with a very aggressive response, the stock market and other markets will certainly react more strongly. But for now, most investors are looking at quarterly earnings, inflation, and how that will affect the US over the next six to nine months – will affect the central bank.” This was also made clear by statements by Fed members Mary Daly and Charles Evans on the day.
Among stocks, Caterpillar shares slipped to the bottom of the Dow list, falling 5.8 percent. The construction machinery and commercial vehicle manufacturer disappointed the market with its sales in the second quarter. Due to lower construction machinery sales in China, it fell short of the average analyst estimate.
On the other hand, Uber , the online network Pinterest and the cloud software provider Zoominfo convinced investors with their reports. With a doubling of its sales in the second quarter, the transport service provider exceeded analyst expectations and the adjusted operating result also surprised positively. Its share price rose nearly 19 percent. Smaller competitor Lyft’s shares rose with it, rising a little more than 16 percent. However, the losses of the shares since the beginning of the year are considerable.
Pinterest’s shares jumped 11.6 percent after the online company’s better-than-expected user numbers last quarter. It was also announced that the investment company Elliott is now the largest shareholder.
Zoominfo also scored with its interim report, which gave the shares a plus of just over eleven percent. For the papers of the car rental company Avis Budget, on the other hand, it went down by 4.7 percent after the quarterly figures were presented. At the start of trading, the titles had jumped up.
A takeover project was also in focus. Investment bank Cowen’s shares rose 8.4 percent to $38.46. Canadian industry colleague Toronto Dominion Bank wants to take over the institute for $1.3 billion or $39 a share in cash.
The euro continued to weaken in the US trade, trading at $1.0164 at the close on Wall Street. The European Central Bank previously set the reference rate in Frankfurt at 1.0224 (Monday: 1.0233) dollars. The dollar thus cost 0.9781 (0.9772) euros.
On the US bond market, US government bonds slipped into the red after a friendly start. The futures contract for ten-year Treasuries (T-Note Future) fell by 1.00 percent to 120.14 points. The yield on ten-year government bonds rose to 2.75 percent./ck/he
— By Claudia Müller, dpa-AFX —
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