Tuesday, 07/18/2023 5:00 p.m. by dpa-AFX
NEW YORK (dpa-AFX) – Positively received quarterly balance sheets from other large US banks gave Wall Street a boost on Tuesday. The Dow Jones Industrial reached its highest level since April 2022. The technology-heavy Nasdaq exchange, on the other hand, fell moderately.
In early trading, the most famous Wall Street index, the Dow, gained 0.85 percent to 34,878.79 points. The S&P 500 rose 0.29 percent to 4,536.01 points, while the Nasdaq 100 fell 0.32 percent to 15,663.15 points.
The economic data were mixed: The retail sector increased its sales in June only slightly compared to the previous month, which had been revised upwards, and thus disappointed expectations. “On the one hand, this can be due to the fact that prices are no longer rising and sales are declining as a result, and on the other hand to a simultaneous declining propensity to consume because consumers have less money at their disposal,” stated market observer Andreas Lipkow. Industry also produced less than expected in June. In contrast, data on inventories and the housing market, which were also published, met the estimates exactly.
However, according to broker Oanda market analyst Craig Erlam, all this data should not “really change anything about the situation for consumers or the economy”. The market has long been expecting the US Federal Reserve to raise interest rates next week. After that, there probably won’t be any more.
Among the shares of the big banks, Morgan Stanley posted the clearest gains on Tuesday with a plus of 6.0 percent. Bank of America (BofA) followed with plus 4.3 percent. Both convinced with their quarterly balance sheets. Morgan Stanley has performed surprisingly well in a difficult environment, praised UBS analyst Brennan Hawken. RBC analyst Gerard Cassidy said that BofA had performed better than expected, not least thanks to lower risk provisions and a lower tax rate. The papers of the Bank of New York Mellon, which had also published figures, were also up 2.0 percent.
In contrast, the shares of Masimo Corporation fell by 21 percent. The medical technology company’s quarterly sales were disappointing. The analysis house Stifel canceled its buy recommendation.
An upgrade to “Outperform” by the analysis company Evercore ISI helped the Pinterest share to gain 2.3 percent. Analyst Mark Mahaney justified his move with stabilized advertising spending and the strategy of new CEO Bill Ready. Because of these influences, he sees the social media company at a turning point./ck/he
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2023-07-18 15:00:00
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