NEW YORK (dpa-AFX) – US stock exchanges recovered significantly on Monday: leading Dow Jones Industrial index rose thanks to positive economic and corporate news
by 2.11 percent to 30,260.46 points. For the S&P 500 at the market level rose 2.85% to 3685.29 points and the Nasdaq 100, which is littered with tech stocks advanced 3.60 percent to 11,076.51 points.
The US stock market then continued its recent zigzag course, which had brought it to a severe setback after stabilizing Thursday before the weekend. Technological values in particular had fallen again on Friday.
Industrial sentiment in New York state surprisingly worsened significantly in October, as the current Empire State Index shows. Placed below the zero line, the indicator signals a decline in economic activity. In recent months, the mood in companies has tended to deteriorate. The background is likely the war in Ukraine, significantly higher energy prices and ongoing problems in world trade. According to the New York Regional Central Bank, companies currently do not expect general conditions to improve in the next six months.
“Currently, the equity markets are saying that negative US economic data is providing a good impetus for equity trading,” commented expert Andreas Lopkow. The steep decline in the Empire State Index is used as a possible reason why the Fed raises interest rates more slowly. “It is doubtful that this will actually be the case,” Lipkow continued. “It helps (but) to find a reason to buy, at least temporarily, at the currently oversold level of US stock indices.” In addition, some better-than-expected quarterly reports raised the mood.
At the beginning of the new week, the data series of the major American banks entered the second round. Bank of America positively surprised, as it coped with the economic turmoil of the third quarter better than experts expected. Despite the high provisions, the bank only made a slightly lower profit than in the same period last year. Shares rose 6.4% accordingly. For the shares of the Bank of New York Mellon it was up 5.5 percent, gains above expectations despite a decline.
Shares of US biogas producer Archaea Energy
jumped into the air thanks to the upcoming acquisition by BP
even more than half at $ 25.85. Archaea’s management around CEO Nick Storck accepts the deal, including the debt, which is worth approximately US $ 4.1 billion, for which the UK oil and gas company wants to put around US $ 26 per share in cash on the table . BP shares had lost 1.2% in London against the friendly market.
The possible reunification of the News Corp. media companies has had mixed reactions and Fox Corp
: While News’ stock was up 4.5%, Fox’s stock was down more than 9%. According to both companies, media mogul Rupert Murdoch intends to merge them. His family trust holds approximately 40 percent of the voting shares of both companies. The merger could save costs and the larger company could more easily develop new business areas such as sports betting across multiple media channels, he said.
Shares in New York-listed Chinese companies benefited from statements by Chinese President Xi Jinping, who pledged his support. So he went to the newspapers of the Internet company JD.com and the Amazon-Alibaba industry peers 5.4 or six percent. Xi showed no signs of deviating from his zero-Covid policy at the Communist Party conference. However, economic recovery continues to have top priority, the party and the head of state said. He has also ensured the support of the tech companies
ISIN US2605661048 US6311011026 US78378X1072
AXC0308 2022-10-17 / 20: 25
Copyright dpa-AFX business news GmbH. All rights reserved. Redistribution, republication or permanent storage is not permitted without the prior express consent of dpa-AFX.
