The market-wide S&P 500 already climbed a new record this Wednesday and most recently rose by 0.81 percent to 3990.81 points. The technology-heavy Nasdaq 100 also gained 1.87 percent to 13 137.07 points, which means a plus of just under 2 percent in the quarter.
On the economic side, there were encouraging figures from the labor market service provider ADP on job creation in March, even if they were not quite as strong as analysts expected. In view of lower corona restrictions and rapid progress with vaccinations, the number of employees rose by 517,000 in a month-on-month comparison. Analysts had expected an average of 550,000. At the same time, the business climate in the Chicago region improved unexpectedly strongly. The indicator rose by 6.8 points to 66.3 points, while analysts had expected an average of 61.0 points. Values above the 50 point mark indicate economic growth.
President Biden will likely attract everyone’s attention shortly after the US market closes. His address is about the targeted infrastructure program worth billions, which is intended to create incentives – for example for a more environmentally friendly economy and technologies that reduce emissions. It is to be financed through higher corporate taxes. Market participants now see the hope of an economic upturn associated with the Biden Plan largely priced into the record prices of the standard values. Technology stocks could still benefit from it, it was said.
Among the individual stocks in the Dow, the stocks of Walgreens Boots Alliance were the top stocks with a plus of 5.1 percent in view. The pharmacy chain raised its annual outlook with the publication of its figures for the second fiscal quarter.
Apple papers followed with a plus of 2.6 percent and benefited from a positive study by the Swiss major bank UBS. Analyst David Vogt expects stable long-term iPhone demand with higher average sales prices at the same time. In addition, he is betting on the technology group’s possible entry into the automotive business, which is not yet included in the share price, and has therefore upgraded the share from “neutral” to “buy”.
With numbers and / or outlooks, Chewy, Cleveland Cliffs and Lululemon were also in focus. Chewy, an online pet supplies retailer, impressed with its sales growth. The shares gained around 7 percent on the Nyse.
Mining company Cleveland-Cliffs surprised with a strong outlook, whereupon the papers on the Nyse climbed to a multi-year high. Most recently they won 15 percent.
In contrast, the shares of Lululemon in the Nasdaq 100 plummeted by 2.1 percent. The Canadian sportswear retailer reported strong quarterly figures and expects strong sales in the new fiscal year, but the target for fiscal year earnings per share 2021/22 was disappointing. Strategic investments will reduce profits. After the stock market closes, the business figures of the semiconductor company Micron Technology are finally on the agenda. The shares recently showed a plus./ck/he with 2.5 percent
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