NEW YORK (awp international) – The US stock exchanges extended their slight losses from the previous day on Tuesday. Investors around the world are nervous as threats have come from China over US leader Nancy Pelosi’s visit to Taiwan. It’s the highest-ranking US politician for a quarter of a century, and the communist Chinese government doesn’t like that at all, because it sees democratic Taiwan as part of the People’s Republic of China. Shortly after Pelosi’s landing in Taipei, Beijing spoke of a “very dangerous game with fire” and announced maneuvers with target practice in six sea areas around the democratic island republic.
The Dow Jones Industrial dropped 0.81 percent to 32,533.40 around two hours before the market closed. The market-wide S&P 500 lost 0.30 percent to 4106.19 points. The Nasdaq 100 fell 0.22 percent to 12,912.00 points.
The stock market is still reacting calmly to the trip by the chairmen of the US House of Representatives, said a market observer. “Of course, if China overreacts with a very aggressive response, the stock market and other markets will certainly react more strongly. But for now, most investors are looking at quarterly earnings, inflation, and how that will affect the US over the next six to nine months – will affect the central bank.”
Among stocks, Caterpillar shares slipped to the bottom of the Dow list, falling 4.4 percent. The construction machinery and commercial vehicle manufacturer disappointed the market with its sales in the second quarter. Due to lower construction machinery sales in China, it fell short of the average analyst estimate.
On the other hand, Uber , the online network Pinterest and the cloud software provider Zoominfo convinced investors with their reports. With a doubling of its sales in the second quarter, the transport service provider exceeded analyst expectations and the adjusted operating result also surprised positively. Its share price rose a little more than 17 percent. Smaller competitor Lyft’s shares rose 14 percent. However, the losses of the shares since the beginning of the year are considerable.
Pinterest’s shares jumped by almost twelve percent after the online company impressed in the past quarter with its user numbers, which were better than feared. It was also announced that the investment company Elliott is now the largest shareholder.
Zoominfo also scored with its interim report, which gave the shares a plus of almost eleven percent. For the papers of the car rental company Avis Budget, on the other hand, after the presentation of the quarterly figures, things went down by 7.5 percent. At the start of trading, the titles had jumped up.
A takeover project was also in focus. The shares of the investment bank Cowen rose by almost eight percent to 38.30 US dollars. Canadian industry colleague Toronto Dominion Bank wants to take over the institute for $1.3 billion or $39 per share in cash./ck/he
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