NEW YORK (awp international) – After the moderate gains at the beginning of the week, the Dow Jones Industrial should give way for the time being. The broker IG estimated the US leading index around three quarters of an hour before the start of trading on Tuesday 0.18 percent lower at 34,933 points. On Monday, the stock market barometer tested the 35,000 point mark for the first time since its record high in May, and the other three major US indices S&P 500, Nasdaq 100 and Nasdaq Composite had set new records.
On this Tuesday, the focus is on the one hand on the development of consumer prices, which surprisingly rose to 5.4 percent in June. In May, inflation was 5 percent, well above the US Federal Reserve’s two percent target. Because the US Federal Reserve (Fed) rates the increase as a transitional development, it does not want to intervene in monetary policy. However, there are increasing doubts among economists as to whether the Fed is correct in its assessment.
On the other hand, the corporate reporting season is becoming more and more the focus of investors. In view of positive coronavirus developments in Europe and – compared to the previous year – beneficial currency effects, capital market strategist Michael Blumenthal from Postbank expects that analyst estimates will again be too low and could be exceeded. Strong profits and confident business outlooks are likely to have a positive impact on market sentiment, which has been dampened in recent weeks by weaker economic data in the US and China.
The two big banks Goldman Sachs and JPMorgan already provided a first foretaste of the reporting season on Tuesday. Less worries about loan defaults brought JPMorgan Chase, the largest US bank, a surprisingly strong profit jump in the second quarter. Those looking for a fly in the ointment might find it in the fixed income business. The bank’s strong papers the day before now lost just under one percent in pre-market US trading.
Shiny deals with mergers and IPOs, meanwhile, brought Goldman Sachs an unexpectedly strong increase in profits. Here the papers gained a little before the market.
Fresh business figures also came from Pepsico: the beverage and snack manufacturer increased its forecast for the full year slightly after robust growth in the second quarter. The shares rose in the pre-market business by a good one percent.
Finally, the aviation giant Boeing has to reduce its delivery targets significantly because of new production defects in the long-haul 787 “Dreamliner”. Further inspections and repairs are necessary for a number of 787 aircraft that have not yet been handed over to customers. The Boeing shares lost almost two percent before the IPO ./la/jha/
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