NEW YORK (awp international) – The latest record run on Tuesday should lead to moderate profit-taking on the US stock market. On the one hand, the continued sell-off on the Chinese stock exchanges is a burden, said market observers. On the other hand, investors are likely to hold back on new commitments even before the meeting of the US Federal Reserve’s Open Market Committee.
A good three quarters of an hour before the start of trading, the broker IG estimated the US leading index Dow Jones Industrial 0.3 percent weaker to 35,040 points. According to IG, the technology-heavy Nasdaq 100 should start almost unchanged.
“The markets are expecting a slight turn away from the extreme looseness,” said Nikko Asset Management’s global chief strategist John Vail, referring to the Fed, which will comment on its monetary policy on Wednesday. The statements of the central bank are likely to indicate that a number of non-voting members want a stricter monetary policy. The so-called hawks within the Fed advocate higher interest rates to keep inflation in check. Federal Reserve Chairman Jerome Powell had recently admitted progress on the way to achieving the monetary policy goals. But there is still a long way to go.
Among the individual values, the focus is primarily on companies with quarterly reports. Tesla, for example, rose by 1.2 percent early on, after having gained a little more than two percent the day before. The electric car maker reported record results for the past quarter and earned more than one billion dollars in a quarter for the first time. The proceeds doubled.
UPS fell 2.3 percent early on, 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.
Dow Jones member 3M benefited from statements on the annual targets before the start of trading and gained 0.8 percent. The US conglomerate, which manufactures respiratory protection and face masks as well as adhesives and household goods, among other things, reported positive business development in the first half of the year and therefore raised its sales and profit forecasts.
GE and Raytheon are also in the focus of investors with their annual reports. For the papers of the conglomerate GE it went up before the market by 3.4 percent. The shares of the defense company Raytheon Technologies, which now screwed up its annual targets again, rose at the same time by 1.3 percent. After hours, Alphabet, AMD and Visa, among others, will move into the spotlight with their business figures.
Intel meanwhile lost 2.1 percent before the start of trading. Goldman analyst Toshiya Hari wrote that the well-known customers Amazon and Qualcomm acquired for contract manufacturing may not be sufficient given the high investor expectations. He reiterated his cautious assessment of the share with a “sell” and expects high competition and increasing capital expenditure. Intel had previously presented two first well-known customers for its services as a contract manufacturer: Amazon and Qualcomm. / Ck / jha /
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