Equities New York Outlook: Investors remain cautious – large corporations with numbers

NEW YORK (dpa-AFX) – Investors on the US stock exchanges are likely to remain cautious on Tuesday. On the one hand, Wednesday is eagerly awaited, because then the next monetary policy decision by the US Federal Reserve (Fed) is on the agenda. On the other hand, the new corona infections remain in view and numerous companies are also attracting attention with their quarterly reports. Around three quarters of an hour before the stock market launch, the broker IG estimated the US leading index Dow Jones Industrial with a minus of 0.4 percent to 26,470 points.

The stock exchanges continue to discuss whether the Fed will now announce the next phase in the middle of the week and, after its intervention in the crisis because of Covid-19, could now support the economic recovery that is beginning. As long as there is uncertainty about this and there is still disagreement among the parties in the USA about the extent and content of the next economic stimulus package, uncertainty remains high. In the opinion of Commerzbank analyst Esther Reichelt, it seems “utopian” that a compromise will be negotiated with the Democrats before the end of the month.

Major corporations with their annual reports are the main focus of the individual values. In the Dow alone, 3M, McDonald’s, Pfizer and Raytheon presented their numbers that day. The US conglomerate 3M, known for its respiratory masks, felt the effects of the coronavirus pandemic. While the company benefited from increased demand for protective equipment, the auto accessories business, among other things, weakened. Traders pointed out that earnings per share fell short of market expectations and that there was no new outlook for 2020. Before the trading session it was now down 2.6 percent.

The world’s largest fast food chain, McDonald’s, also fell short of expectations. Above all, disappointing comparable sales were pilloried here, which depressed the share by 2.1 percent before it started trading. The defense and electronics company Raytheon reported multi-billion dollar depreciation due to the pandemic. However, since the adjusted earnings per share were well above the analysts’ estimates, the shares rose 2.4 percent before the market.

The pharmaceutical company Pfizer is expecting a gradual improvement in the second half of the year after a partly corona-related decline in sales and earnings in the second quarter and has raised its annual forecasts somewhat. The papers then went up by 3.0 percent before the IPO.

In addition, Intel’s papers are likely to continue to attract attention. The stock had lost around 16 percent on Friday when the chip manufacturer admitted that the market launch of a new generation of chips (processors with structure widths of 7 nanometers) will be delayed again. On Monday it went down again by 2 percent and now the papers are weakening again before the market and recently fell by 0.6 percent. Intel is turning its management upside down, the previous hardware boss Murthy Renduchintala is leaving at the beginning of August.

In addition, NXP Semiconductors lost 4.4 percent on the Nasdaq. The chip manufacturer from the Netherlands expects an operating loss of a little more than 100 million US dollars in the third quarter ./ck/fba

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