Börse Express – New York Stocks: Profit-taking after record highs

NEW YORK (dpa-AFX) – The US stock markets have come up with more significant losses after their most recent record run on Tuesday. The technology stocks in particular were under greater selling pressure. The continued sell-off on the Chinese stock exchanges and the passivity of many investors before the meeting of the US Federal Reserve’s Open Market Committee had a negative impact, market observers said. Fresh US economic data had little impact on prices.

Der Dow Jones Industrial last lost 0.67 percent to 34 907.88 points. The leading index reached record highs on Friday and Monday. The S&P 500 fell on Tuesday by 1.05 percent to 4,375.74 points. The Nasdaq 100 slumped by 2.01 percent to 14,822.49 points and is thus heading for the highest daily loss is more than two months.

“The markets are expecting a slight turn away from the extreme looseness,” said market expert John Vail of Nikko Asset Management with a view to the Fed, which will comment on its monetary policy on Wednesday. Despite high inflation rates, the central bankers are unlikely to turn the monetary policy trend. According to economists surveyed by the Bloomberg news agency, there should not yet be a clear signal to reduce bond purchases (tapering). The discussions in the Monetary Policy Committee about an exit are likely to continue, however.

The downward trend in China is adding to the unease in the global markets, as investors are already concerned about the economic recovery given the rise in the Covid-19 delta variant and the discussions about tightening monetary policy, it said from the trade. “The turmoil in tech stocks in China is ultimately affecting US tech stocks,” said Chris Murphy, co-head of derivatives strategy for Susquehanna International Group.

In the US, durable goods orders rose less than expected in June. The rise in US house prices accelerated further in May, up 17 percent. This is the strongest increase since summer 2004. Sentiment among US consumers brightened slightly in July, with consumer confidence increasing by 0.2 points compared to the previous month. Analysts had expected a decline on average.

Among the individual values, the focus was primarily on companies with quarterly reports. Tesla papers lost 2.6 percent after gaining more than 2 percent the day before. The electric car maker had again reported record results for the past quarter and earned more than one billion dollars in a quarter for the first time. The proceeds had also doubled. However, the market said the titles were highly valued. Since the quarterly figures were less than perfect, this was enough to depress Tesla shares in a downward trend.

Intel lost 3.3 percent as the bottom of the Dow. The well-known customers Amazon won for contract manufacturing
and Qualcomm may not be enough given the high investor expectations, wrote Goldman analyst Toshiya Hari.

UPS fell 7.6 percent, although the parcel service reported a strong second quarter. JPMorgan analyst pointed to the margin outlook as weakness. The expected 12.7 percent for the 2021 operating margin are not enough for the market, because the average analyst estimate is already there.

The titles of 3M decreased by 1.0 percent according to statements about the annual targets. The US conglomerate, which manufactures respiratory protection and face masks as well as adhesives and household goods, among other things, initially reported positive business development in the first half of the year and therefore raised its forecasts for sales and profits. In the subsequent conference call, however, the corporate management warned of rising material costs, which are likely to be higher than the price increases for their own products./edh/he

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0318 2021-07-27/20:10

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