NEW YORK (dpa-AFX) – After the positive start to the week, the mood on Wall Street clouded over again on Tuesday. Losses are apparent right at the start of trading. The broker IG assessed the leading index Dow Jones Industrial (Dow Jones 30 Industrial) three quarters of an hour before the start of trading with around 0.73 percent in the red at 32,675.90 points. The technology stock-heavy NASDAQ 100 is expected to trade at a discount of around 1.2 percent.
The day before, Wall Street was still able to recover somewhat from the setback it suffered at the end of last week. But there seems to be little left of the positive impulses in view of the corona easing in China – instead, the previous evening’s increase in yields on the US bond markets is causing stock market traders headaches. Market participants recently took it as an indication of rising interest rate and inflation concerns. Coupled with the surprisingly strong interest rate hike in Australia, this is clouding the mood.
At the same time, tension is increasing ahead of the important meetings of the European Central Bank (ECB) this week, which will then be followed by the key interest rate decision by the US Federal Reserve next week. In view of the very high inflation, there is the question of a possibly faster tightening of the monetary policy in the room.
On the economic agenda on Tuesday there are more data from the second row, which should give little impetus to trade. When it comes to individual values, investors will probably continue to keep an eye on Twitter and the shaky takeover deal Elon Musk have, while the Apple share is in focus because of numerous announcements by the iPhone manufacturer at the developer conference WWDC.
Investors were disappointed after retailer Target, which was struggling with rising costs due to inflation and supply chain disruptions, once again lowered its outlook within a few weeks. The shares fell significantly in premarket trading. The company is now trying to get a grip on the problems with more discounts, fewer orders and a reduction in inventory. Target therefore announced a far lower operating margin for the second quarter than in mid-May.
A lowered outlook for the food manufacturer JM Smucker due to a product recall might also not appeal to investors. In contrast, the shares of Kohl’s Corp rose sharply before the market, because the prospects of a takeover of the US retailer by the Franchise Group are increasing. The Board of Directors has agreed to exclusive negotiations.
The papers from Novavax should also be worth a look, as hopes of the approval of the Covid 19 vaccine recently supported the share. Papers from the oil company Exxon could in turn benefit from a positive rating by Evercore analysts./tav/jha/
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