Börse Express – New York equities: indices turn negative

NEW YORK (dpa-AFX) – The significant recovery in prices on US stock exchanges vanished again on Thursday in trading. The leading Dow Jones Industrial Index it turned negative and recently lost 0.35% to 30,317.53 points. For the S&P 500 at the market level
fell 0.86% to 3663.47 points and the heavily tech Nasdaq 100 fell 0.64 percent to 11,032.43 points.

Wall Street initially reacted positively to mixed US economic data and the resignation of British Prime Minister Liz Truss. Over time, however, the further increase in bond yields proved to be a drag. The much-noted yield on US Treasuries with a ten-year maturity has recently risen to 4.22 percent, which is even more above the four percent threshold.

“The round sign, which many had interpreted as a signal of an imminent turnaround in both market interest rates and the tightening of central banks’ monetary policy, was therefore only a pause in the ongoing uptrend. “commented Jürgen, capital market strategist Molnar from broker Robomarkets.

Mixed domestic economic data has at least not fueled fears of further significant US interest rate hikes in the fight against inflation. While initial weekly jobless claims fell surprisingly and existing home sales fell more moderately than expected, business sentiment in the US Philadelphia area improved less than expected. In addition, the leading indicator index recorded a more significant decline than expected.

Investors also focused on some quarterly reports. Despite high inflation and global economic concerns, electric car maker Tesla has risen its strong quarterly profit. However, the proceeds remained below market expectations. Shares fell more than seven percent, leading the Nasdaq 100.

With American Airlines after the price rally of the last few days, even optimistic expectations for the future were not enough for further gains: the stock lost three and a half points. In consideration of customers’ desire to travel, the airline expects the vigorous recovery to continue in the final quarter. The company thus follows the competition which, despite general concerns about consumer buying behavior in times of high inflation, also expects good demand for travel.

In contrast, the IBM computer veteran cards were
with more 4.3 percent leading Dow. Third quarter sales and operating profit exceeded analysts’ expectations. Additionally, IBM has raised its sales forecast for the year.

Shares of telecommunications giant AT&T even rose nearly seven percent to. The company increased its earnings guide after better-than-expected customer growth in the third quarter.

For Philip Morris shares and its competitor Altria however, it fell by nearly two percent in each case. Tobacco manufacturer Philip Morris has increased its offer for competitor Swedish Match SEK 106 to 116 per share in cash. The offer for the manufacturer of smoke-free products is not expected to be further increased. The acquisition is intended to expand operations beyond the classic tobacco business, which is why a deal has been made with US tobacco company Altria for US rights to its IQOS tobacco heating system for 2.7 billions of dollars before taxes. Philip Morris’ quarterly numbers were eclipsed by this news

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0349 2022-10-20 / 20: 27

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