NEW YORK (awp international) – The most recent setback on the US stock market was followed by a recovery movement in the middle of the week. After predominantly positive quarterly reports from numerous companies and better-than-expected US economic data, the Dow Jones Industrial rose by 0.55 percent to 32,573.34 points in early trading on Wall Street on Wednesday.
The market-wide S&P 500 rose by 0.73 percent to 4121.05 points. The Nasdaq 100 gained 1.36 percent to 13,076.80 points. In the previous two days, the US indices had weakened after an unusually strong month of July. While they were still quite stable on Monday, things went down a little more clearly on Tuesday. Threats from China over the visit of US House Speaker Nancy Pelosi to Taiwan and comments from regional Federal Reserve Governors on the subject of inflation weighed heavily.
The focus of investors on this day is currently primarily on the newly published data on economic development in the United States. The mood in the US services sector improved surprisingly in July and the ISM Services is also clearly in the growth area. “There are no indications of a contraction in the sector and against this background growth worries should tend to diminish,” said Helaba economist Ulrich Wortberg. In addition, US industrial orders in June rose much more sharply than forecast compared to May.
In the middle of the week, the focus was primarily on companies listed on the Nasdaq and took the top spots in the technology-heavy selection index: Moderna was the biggest winner with a plus of 15.0 percent. Regeneron jumped 6.5 percent. The biotech company Moderna continued to benefit from its corona vaccine in the past quarter and also announced a share buyback program. Regeneron surprised positively on the sales side thanks to its blockbuster drugs Dupixent and Eylea.
Paypal shares shot up 11.2 percent on the Nasdaq 100, despite the payment service reporting a slump in second-quarter earnings. This was mainly due to special factors such as higher taxes – day-to-day business went relatively smoothly. In addition, investors welcomed the news that the investor Elliott, known for his insistence on high returns and his involvement in management, is one of the largest shareholders with a stake worth around two billion dollars. The influence was immediately noticeable: Paypal promised austerity measures, increased profit targets, introduced a new chief financial officer and announced a new billion-dollar share buyback program.
Starbucks, also on the Nasdaq 100, gained 1.5 percent. The coffee house chain significantly increased sales in the past quarter despite burdens in China. In addition, although profit was down, it still exceeded expectations.
In contrast, AMD shares lost 1.5 percent. The chip company disappointed with its sales forecast for the current third quarter./ck/he
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