NEW YORK (Dow Jones) – Investors on Wall Street are more cautious on Wednesday than last. Higher premiums at the start have partially melted away. The market is vulnerable to profit-taking after the strongest quarter in around 20 years ended the previous day. The rapid recovery in the second quarter followed the massive slump caused by the corona pandemic.
The Dow Jones index gained 0.1 percent to 25,828 points, the S & P-500 was 0.4 percent firmer, while the Nasdaq composite gained 0.7 percent.
The pandemic and its consequences for the global economy will remain the dominant issue on the stock markets in the third quarter. Investors continue to move between fears of further virus spread and hope of a quick economic recovery thanks to government support and an ultra-loose one Monetary policy of central banks.
Especially in the United States, the number of newly infected people is increasing rapidly. Some US states even have record numbers. On Tuesday, US medical officer and presidential advisor Anthony Fauci warned of a massive increase in infections. The number of new infections per day in the United States could increase from currently more than 40,000 to 100,000, said Fauci at a hearing in the US Senate.
The ADP labor market report was a surprise. Although the job growth in June at 2.37 million was slightly below the expectations of economists, ADP revised the May data to a job growth of around 3.07 million – previously a job loss of 2.76 million was reported. The data is considered an indicator for the US government’s official labor market report, which will be released on Thursday.
The purchasing manager indices for the manufacturing sector were strong. The ISM index jumped above the 50 threshold at 52.6, signaling growth. Compared to the previous month (43.1), it was the biggest jump since 1980. The index published by Markit met the expectations at 49.8 points in June at second reading and was therefore just under 50. By contrast, construction expenditure in May is surprising sunk. At 8 p.m. CEST, the Fed minutes of the central bank meeting on June 9 and 10, respectively, will be published.
Oil prices supported by falling inventories
Oil prices rise with the declining crude oil inventories in the United States, according to official data. The previous day, the private American Petroleum Institute (API) reported a decline in weekly US inventories. WTI grows 1.6 percent to $ 39.91 a barrel, Brent gains 2.0 percent to $ 42.10.
On the foreign exchange market, the dollar comes under pressure with strong economic data as it is less in demand as a safe haven. The euro advances to $ 1.1258 versus 1.1222 on Wednesday morning.
Gold is not in demand as a supposedly “safe haven”. The troy ounce yields 1 percent to $ 1,764. For bonds, the yield on ten-year US stocks rose 2.5 basis points to 0.68 percent as prices fell.
FedEx is bullish on good numbers
Fedex jump up 14.5 percent. A boom in online orders during the Corona crisis gave the parcel service provider better-than-expected results in the fourth business quarter. The company spoke of an order volume like at Christmas time. There are also signs of a recovery in the global economy from the corona pandemic, according to FedEx.
United Airlines win 1.5 percent. The airline will offer 60 percent fewer flights in August than a year ago. Since the demand for the Corona crisis is picking up again, the flight schedule for the month will be increased by 25,000 connections compared to July, the airline said. Compared to June, this corresponds to a tripling.
Biontech and Pfizer achieved good results in a phase 1/2 clinical trial of a vaccine against Covid-19. The German Biontech is listed on the Nasdaq and works with Pfizer on the vaccine. Biontech win 6.2 percent, Pfizer 4.9 percent.
The Tesla share is unstoppable. It rose another 4.5 percent after closing well above the $ 1,000 mark the previous day. With a market value of over $ 207 billion, Tesla is now the world’s most valuable auto company.
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INDEX last +/-% absolute +/-% YTD
DJIA 25.828,04 0.06 15,16 -9,50
S&P-500 3.112,96 0,41 12,67 -3,65
Nasdaq-Comp. 10.128,56 0,69 69,79 12,88
Nasdaq-100 10.249,15 0,91 92,30 17,36
US bonds
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.16 1.6 0.14 -104.2
5 years 0.31 1.7 0.29 -161.9
7 years 0.51 2.7 0.49 -173.4
10 years 0.68 2.5 0.65 -176.7
30 years 1.43 2.1 1.41 -163.7
CURRENCIES last +/-% Wed, 8:07 Tue, 17:35% YTD
EUR/USD 1,1258 +0,23% 1,1222 1,1244 +0,4%
EUR/JPY 121,02 -0,19% 120,76 121,20 -0,7%
EUR/CHF 1,0644 +0,04% 1,0624 1,0650 -2,0%
EUR/GBP 0,9027 -0,35% 0,9075 0,9081 +6,7%
USD/JPY 107,50 -0,43% 107,62 107,77 -1,2%
GBP/USD 1,2471 +0,59% 1,2367 1,2380 -5,9%
USD/CNH (Offshore) 7,0665 -0,05% 7,0736 7,0685 +1,4%
Bitcoin
BTC / USD 9,252.26 + 1.03% 9,126.01 9.163.76 + 28.3%
ROHOEL zuletzt VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 39,91 39,27 +1,6% 0,64 -31,6%
Brent/ICE 42,10 41,27 +2,0% 0,83 -32,7%
METALLE last day before +/-% +/- USD% YTD
Gold (Spot) 1.763,66 1.782,05 -1,0% -18,39 +16,2%
Silver (spot) 17.93 18.18 -1.3% -0.24 + 0.5%
Platinum (Spot) 814.75 824.48 -1.2% -9.73 -15.6%
Kupfer-Future 2,71 2,71 -0,2% -0,01 -3,8%
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DJG / raz / err
(END) Dow Jones Newswires
July 01, 2020 12:15 ET (16:15 GMT)
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