NEW YORK (awp international) – The Dow Jones Industrial tested the 35,000 point mark again on Tuesday at the start of the US reporting season and despite another surge in inflation. But then the upward momentum subsided. The best-known US index closed 0.31 percent easier to 34 888.79 points.
The other three major indices temporarily climbed to new highs in early trading before falling slightly again. The S&P 500 ultimately fell 0.35 percent to 4,369.21 points. The Nasdaq 100 was able to hold its own with minus 0.02 percent to 14,874.54 points on the previous day’s close, the broad Nasdaq Composite fell by 0.38 percent.
In June consumer prices rose surprisingly to 5.4 percent, the highest level since August 2008. In May, inflation was 5 percent, well above the two percent target set by the US Federal Reserve (Fed). However, because the latter assesses the increase as a temporary development, it does not want to intervene in monetary policy. However, there are growing doubts among economists as to whether the Fed is still correct in its assessment. In any case, this development will not make the Fed’s situation any easier, as Helaba’s analyst Ralf Umlauf said.
The hot phase of the reporting season in the USA started with two banks: the largest US bank JPMorgan reported a surprisingly strong profit jump in the second quarter and its earnings per share exceeded analysts’ estimates. However, the result also included a provision release totaling $ 3 billion. The shares fell 1.5 percent. Goldman Sachs fell 1.2 percent. Despite an unexpectedly strong increase in profits, this bank had disappointed with its earnings in the trading business.
Boeing, at the bottom of the Dow, suffered from a lower delivery target of 4.2 percent. New production defects in the long-haul 787 “Dreamliner” made this necessary. Further inspections and repairs are necessary for a number of 787 aircraft that have not yet been handed over to customers.
Pepsico, on the other hand, gained 2.3 percent in the S&P 100. After robust growth in the second quarter, the beverage and snack manufacturer increased its forecast for the full year slightly.
The euro was $ 1.1778 at close of trading on Wall Street. It suffered from a dollar that strengthened following the latest inflation data. The European Central Bank set the reference rate in Frankfurt in the afternoon at 1.1844 (Monday: 1.1852) dollars. The dollar cost 0.8443 (0.8437) euros. On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.29 percent to 133.01 points. The yield on ten-year government bonds rose to 1.41 percent./ck/men
— By Claudia Müller, dpa-AFX —
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