New York (dpa) – The US stock exchanges increased their losses suffered at the beginning of the week on Tuesday. Just before the start of corporate reporting season, investors shied away from risk. In the coming days, major banks in particular will present fresh quarterly figures.
After a mixed start, the leading index Dow Jones Industrial finally fell by 0.34 percent to 34,378.34 points. The S&P 500 was down 0.24 percent to 4,350.65 points. The technology-heavy Nasdaq 100 fell 0.35 percent to 14,662.11 points.
In general, investors are currently torn between the prospect of rising corporate earnings in the wake of the macroeconomic recovery on the one hand and inflation concerns on the other. The focus at the moment is particularly on oil prices, which are still quoting above 80 US dollars per barrel and thus close to multi-year highs. However, their recent strong increase has recently weakened again somewhat.
On both sides of the Atlantic, there are fears that the oil price rally could lead to energy bottlenecks and stifle the global economic recovery from the corona pandemic. Apart from that, China is also being looked at, because the world’s second largest economy has been taking stricter regulatory measures for some time, controls monopolies more closely and is probably expanding its reviews of the financial and banking system.
At the top of the Dow, the shares of Nike rose by around two percent after the investment bank Goldman Sachs recommended the shares to be bought. Analyst Kate McShane referred, among other things, to the high liquidity of the sporting goods group, which should enable additional investments and capital returns to the shareholders. The shares hold further upside potential, especially after the recent price decline, it was said.
The car manufacturer General Motors (GM) had agreed with the Korean electronics company LG on problems with its batteries on billions in compensation. LG is paying for the costs related to the recall of fire endangered electric cars of the type Chevrolet Bolt EV and its SUV version due to manufacturing defects. GM stocks gained one and a half percent.
American Airlines is expected to be in the black in the third quarter, among other things, given a recovery in ticket demand. The airline owes this to the state financial aid to secure jobs in the Corona crisis. The shares increased by 0.8 percent.
The euro remained under pressure and hit a 15-month low in trading. While in the USA there is hardly anything standing in the way of a first step out of the extremely loose monetary policy of the central bank, there are still no indications of containing the flood of money in the euro zone. Most recently, the common currency was quoted at 1.1530 US dollars. The European Central Bank had previously set the reference rate at 1.1555 (Monday: 1.1574) dollars. The dollar cost 0.8654 (0.8640) euros.
On the US bond market, the futures contract for ten-year Treasuries (T-Note-Future) profited from the rather gloomy international stock market sentiment after the holiday on Monday and rose by 0.26 percent to 131.19 points. Ten-year paper yielded 1.57 percent, slightly below its recently marked five-month high of 1.63 percent.
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