On the US stock market, the leading index Dow Jones Industrial (Dow Jones 30 Industrial) picked up speed again after the sobering start to the week on Tuesday.
NEW YORK (dpa-AFX) – On the US stock market, the leading index Dow Jones Industrial (Dow Jones 30 Industrial) picked up speed again after the sobering start to the week on Tuesday. According to stockbrokers, positive impulses came from statements made by a governor of the US Federal Reserve (Fed) on monetary policy. Lael Brainard had said the Fed should buy up assets on a massive scale for a sustained period of time in order to revive the economy in a “thick fog of uncertainty” caused by the virus crisis. The technology stocks, which had been badly shaken the day before at the end of trading, also recovered, although the price gains here remained manageable.
The Dow closed 2.13 percent up at 26,642.59 points. The broader S&P 500 gained 1.34 percent to 3197.52 points.
The NASDAQ 100 advanced 0.82 percent to 10,689.52 points. On Monday, the stock market barometer passed the 11,000 mark for the first time in its history.
Among the individual stocks, the shares of Travelers rose by almost four percent. The non-life insurer had to book a lot of storm damage and costs as a result of civil unrest in the USA in the second quarter. However, stockbrokers positively emphasized that the Covid 19 crisis had had a rather moderate impact.
At the top of the Dow, the construction machinery manufacturer Caterpillar benefited with an increase of almost five percent from the significantly brightened market sentiment. In the wake of moderately rising oil prices, the shares of the oil companies Chevron and ExxonMobil each gained a good three percent. All other stocks listed in the US leading index also closed in positive territory.
Otherwise, the focus was on business figures from banks. JPMorgan (JPMorgan ChaseCo), for example, is still grappling hard with the consequences of the economic consequences of the corona pandemic. But despite a double-digit billion charge for loan defaults, the bank still achieved a high profit, which was also better than expected by experts. The shares fluctuated in the course of trading between gains and losses and closed 0.6 percent higher.
The rival Wells Fargo (Wells FargoCo) fared significantly worse than JPMorgan, who suffered the first quarterly loss since the financial crisis more than ten years ago due to the corona pandemic. Investors particularly disliked the fact that Wells Fargo cut dividends more than analysts had forecast. The shares lost almost five percent among the weakest values in the S&P 500.
Billion dollar buffers against loan defaults in the Corona crisis also weighed heavily on Citigroup, whose shares lost around four percent. Nevertheless, the big bank had made a billion profit in the second quarter, which was also higher than expected by experts. As with JPMorgan and Wells Fargo, the largest negative factor was loan loss provisions.
Meanwhile, investors were scrambling for shares in the financial technology startup Ncino: the shares almost tripled on their first day of trading on the stock exchange. Ncino offers rental software for the banking sector over the Internet.
The euro gained in light of positive economic data from Europe and was most recently quoted at 1.1393 US dollars. The European Central Bank set the reference rate at 1.1375 (Monday: 1.1329) US dollars. The dollar cost 0.8791 (0.8827) euros. On the US bond market, trend-setting ten-year government bonds fell 2/32 points to 100 points in view of the gains on Wall Street and returned 0.625 percent./la/he
— By Lutz Alexander, dpa-AFX —
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