NEW YORK (awp international) – The recent setback on the US stock market was followed by a strong recovery movement on Wednesday. After the quarterly reports from numerous companies were received largely positively, as well as optimistic US economic data, the Dow Jones Industrial rose by 0.55 percent to 32,573.34 points around two hours before the market closed. However, the most important Wall Street index has not yet been able to fully make up for its losses since the beginning of the month.
The situation was different for the market-wide S&P 500 and the technology selection index Nasdaq 100, which are now building on their strong run in July: The S&P 500 advanced by 1.58 percent to 4156.03 points. The Nasdaq 100 gained 2.65 percent to 13,244.09 points. In the previous two days, the US indices had weakened after an unusually strong month of July. While they were still quite stable on Monday, things went down a little more clearly on Tuesday. Threats from China over the visit of US House Speaker Nancy Pelosi to Taiwan and comments from regional Federal Reserve Governors on the subject of inflation weighed heavily.
The focus of investors on this day was primarily the data on economic development in the United States. The mood in the US services sector improved surprisingly in July and the ISM Services is also clearly in the growth area. “There are no indications of a contraction in the sector and against this background growth worries should tend to diminish,” said Helaba economist Ulrich Wortberg. The orders received for US industry in June were also published. Compared to the month of May, they rose far more strongly than forecast.
On the company side, the focus in the middle of the week was primarily on companies listed on the Nasdaq, where they held top positions: Moderna was the biggest winner with a plus of 16.3 percent. Regeneron jumped 5.9 percent. The biotech company Moderna continued to benefit from its corona vaccine in the past quarter and also announced a share buyback program. Regeneron surprised positively on the sales side thanks to its blockbuster drugs Dupixent and Eylea.
Paypal shares shot up 9.5 percent on the Nasdaq 100, even as the payments service reported a slump in second-quarter earnings. This was mainly due to special factors such as higher taxes – day-to-day business went relatively smoothly. In addition, investors welcomed the news that the investor Elliott, known for his insistence on high returns and his involvement in management, is one of the largest shareholders with a stake worth around two billion dollars. The influence was immediately noticeable: Paypal promised austerity measures, increased profit targets, introduced a new chief financial officer and announced a new billion-dollar share buyback program.
Starbucks, also on the Nasdaq 100, gained 4.3 percent. The coffee house chain significantly increased sales in the past quarter despite burdens in China. In addition, although profit was down, it still exceeded expectations.
In contrast, AMD’s shares, one of the biggest losers in the Nasdaq selection index, lost 2.0 percent. The chip company disappointed with its sales forecast for the current third quarter. The Tinder app parent Match Group dropped by 17.0 percent after the outlook for the current third quarter had disappointed.
In the S&P 100, Ford shares rose 3.1 percent after strong sales figures in July. Among the smaller values, the papers of the fresh storage box manufacturer Tupperware shot up at times by 65 percent after better than expected quarterly figures. Most recently, the plus was 26 percent./ck/he
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