The share prices on Wall Street stabilized again on Tuesday after the losses at the beginning of the year. The already high valuations and the reluctance of investors on the day of the important runoff elections for the US Senate in Georgia, however, again set limits to willingness to buy. Strongly unusual sentiment data from industry did not provide any positive impulses either.
The leading index Dow Jones Industrial Overcame a temporary attack of weakness and in the end gained 0.55 percent to 30 391.60 points. The market-wide S&P 500 rose 0.71 percent to 3726.86 points and the technology-heavy Nasdaq 100 gained 0.85 percent on 12 802.38 points. On Monday, all three indices had already set records at the beginning, but then closed with clear losses.
The result of the votes in Georgia will determine whether the Republicans can defend their majority in the Senate or whether the Democrats will also dominate the second chamber of parliament in addition to the House of Representatives. The polling stations close on Wednesday at 1 a.m. CET.
US observers expected a close race. It was initially unclear when there would be reliable results. According to analysts at the investment management company T. Rowe Price, the election result could be decisive for the size of the next economic stimulus program and thus the recovery of the coronavirus-strained US economy.
With control of the Senate, the future President Joe Biden could rule – provided the Democrats pull together on bills or appointments of government officials. In this case, investors expect higher fiscal incentives to stimulate the economy, but also higher taxes and more regulation. But if the Republicans manage to win at least one of the two seats, they can block any initiative by Biden – starting with the nomination of his cabinet.
Qualcomm’s titles gained more than two and a half percent after a change in leadership became known. At the chip company, an expert in super-fast 5G radio data transmission takes over the chief position: Christiano Amon replaces Steve Mollenkopf, who had successfully brought the company through a series of legal turbulence.
The shares of the oil giant Chevron conquered one of the top Dow places with a plus of 2.7 percent, and for the titles of competitor Exxon Mobil it even went up by almost five percent. They were helped by the significant rise in the price of the important raw material after the oil alliance Opec + reacted to the economic uncertainties in the Corona crisis by announcing a surprisingly sharp cut in oil production in February and March.
Otherwise, analyst comments caused price fluctuations. The shares of Boeing gained nearly four and a half percent as the Dow front runner, making up for a large part of the previous day’s loss. At the beginning of the week, a sales recommendation from the analysis company Bernstein weighed on it, but now UBS has given support. The Swiss confirmed their vote to buy the aircraft manufacturer’s title. For papers from the semiconductor manufacturer Micron Technology thanks to Citigroup, which is now advising buy instead of selling, it rose by 4.3 percent.
In contrast, shares in the solar group First Solar lost
just under nine percent. The bank Goldman Sachs took their buy recommendation and is now recommending a sale.
The Euro rose to $ 1.2291 in New York trade. The European Central Bank (ECB) had previously set the reference rate at 1.2271 (Monday: 1.2296) dollars and the dollar cost 0.8149 (0.8133) euros. After a cautious start to trading, US government bonds fell a little further: The futures contract for ten-year Treasuries (T-Note-Future) fell by 0.22 percent to 137.85 points. The yield on the ten-year bond was 0.95 percent./gl/he
— By Gerold Löhle, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0325 2021-01-05 / 22:23
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