Equities New York Outlook: Dow with slight losses – Nasdaq stable

NEW YORK (dpa-AFX) – The US stock exchanges are likely to start inconsistently on Tuesday. While Wall Street is likely to go down a bit after moderate gains at the start of the week, the technology-heavy Nasdaq stock exchange is expected to be stable despite strong previous day gains. The speeches by Fed Chairman Jerome Powell and US Treasury Secretary Janet Yellen will probably be in the focus of market participants. In addition, falling oil prices could attract attention, as could the further falling yields on the US bond market. In addition, tensions between the world’s two largest economies, the USA and China, remained an issue, said Axi market strategist Stephen Innes.

The broker IG valued the most famous Wall Street index, the Dow Jones Industrial, around three quarters of an hour before the stock market opened, 0.35 percent lower to 32,618 points. IG expects the Nasdaq 100 unchanged at 13 087 points. In the US bond market, the yield on trend-setting ten-year government bonds fell to 1.64 percent.

As the US Federal Reserve President Powell read in a previously published speech, the domestic economy recovered from the corona slump faster than expected. However, the recovery is far from over, which is why the Fed will support the economy “as long as necessary”.

Among the individual stocks, the shares of Microsoft could be worth a look. Before the trading day, however, they hardly moved. According to circles, the software giant wants to expand its range of computer games business through an acquisition. Microsoft is in talks to buy the private US company Discord for more than 10 billion US dollars, reported the Bloomberg news agency on Tuesday night, citing insiders. Discord started in 2015 and is an online service for voice, video and text communication.

In addition, some companies are being monitored with quarterly reports. Prior to the start of trading, data service provider IHS Markit announced higher than expected adjusted earnings per share for the first fiscal quarter. As a result, the share rose by 2.3 percent before the IPO. After the close of trading, the software company Adobe and the video game retailer Gamestop, which has recently become the plaything of speculators, are also expected with numbers.

Another sharp drop in oil prices could also weigh on the papers of Chevron, ExxonMobil or ConocoPhillips. In any case, losses of around two percent were pending before the trading day. Worries about a decline in demand weighed on, as further restrictions are being introduced or expanded again due to the corona pandemic, which is still rampant in Europe. Among other things, Germany has decided on a tough lockdown over the Easter holidays and advised against travel ./ck/jha/

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