NEW YORK (dpa-AFX) – Losses are evident on the US stock exchanges at the start of trading on Tuesday. Concerns about economic development in China are likely to play a role, as well as the surprisingly strong retail sales in the USA.
Around three quarters of an hour before the start of trading, the broker IG assessed the Dow Jones Industrial 0.8 percent lower to 35,030 points after the US leading index had closed minimally positive the day before. The Nasdaq 100 should start with minus 0.6 percent at 15,115 points. The technology-heavy selection index had increased significantly at the beginning of the week. Strong gains from Nvidia, which had been confirmed by Morgan Stanley as a “top pick”, had boosted and also driven numerous other stocks such as Micron, AMD and Intel.
Looking at the economic data for the day, China’s July retail sales and industrial production came in below expectations. The Chinese central bank therefore increased interest rates again in order to support the ailing economy. US Treasury Secretary Janet Yellen called China’s economic woes a “risk factor” for the United States. However, she added that it’s not one that’s particularly dampening her optimism about the US economy.
In the US, however, retail sales in July were significantly better than expected, which is probably fueling concerns among some investors that the US Federal Reserve Bank will raise interest rates again. The minutes of the last Fed interest rate meeting are likely to attract even more attention on Wednesday. However, the experts at Helaba wrote that there was no reason for such concern, since the data on industrial sentiment in the New York economic area that had also just been published was clearly disappointing.
Among the individual values, the shares of Nvidia should remain in view, because UBS has now also expressed itself somewhat more positively than before about the chip manufacturer. Nvidia went up by two percent premarket. Despite the recent setback, the stock remains promising, wrote analyst Timothy Arcuri. He raised his estimates sharply and accordingly the price target to now 540 US dollars. He sees further upside potential of 23 percent. Nvidia is a beneficiary of the artificial intelligence boom because of its powerful computer chips. However, after the price rally of the past few months, the share had recently slipped again somewhat.
Home Depot shares are down half a percent premarket. The hardware store chain reported better-than-expected earnings figures for the second quarter, but on the sales side the Dow group lagged behind the analysts’ estimates. At the same time, the annual targets were confirmed and a $15 billion buyback program was also announced.
Tesla fell by one percent before the start of trading. The electric car maker is launching two stripped-down versions of its Model S and Model X vehicles in the US and Canada. In doing so, he lowered the price by $10,000 amid increasingly fierce competition. “This comes just a day after Tesla cut the price of Model Y variants in China after deliveries there fell to their lowest level this year in July,” said Hargreaves Landsdown market analyst Susannah Streeter. “Electric cars from competitors like BYD are available at significantly lower prices than a Tesla, which the US automaker sees as a risk to sales growth in this key growth region.”/ck/jha/
2023-08-15 13:09:44
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