NEW YORK (dpa-AFX) – The US stock exchanges shook off their heavy daily losses this Wednesday and ultimately converted them into profits. Investors were relieved to respond to two important news: On the one hand, Russia wants to counter the growing global natural gas crisis and deliver “record amounts” of gas to Europe, which would also indirectly dampen the demand for crude oil. In addition, the dispute about raising the debt ceiling is probably going ahead. Mich McConnell, the leading Republican in the US Senate, announced that his party would not block any extension of the debt ceiling until December.
The Dow Jones Industrial (DJIA) (Dow Jones 30 Industrial) went up 0.30 percent to 34,416.99 points from the day after the Wall Street Index fell well below 34,000 points shortly after the start of trading . The S&P 500 also managed to turn into profitability. It closed with a premium of 0.41 percent to 4363.55 points. The technology-heavy NASDAQ 100 also turned and gained 0.63 percent to 14,766.75 points.
After months of price rally – especially in the USA – the global stock markets have for some time been increasingly in the grip of inflation and economic worries and at the same time suffer from fears that interest rates will soon be raised. The recent sharp rise in oil prices play an important role in this. On Monday, the Opec + group announced that it would not increase its production volume more than planned despite the global oil shortage. That made for new multi-year highs until now the statements of Russia stopped the rally. Prices are currently falling again, which was promptly reflected in the prices of oil stocks such as Chevron and ExxonMobil.
The significantly stronger than expected September employment data from the US private sector, which was released on that day, did not meet with euphoria. The labor market service provider ADP had reported an increase in employment of almost 570,000 compared to August, while economists had only expected 430,000 new jobs. However, JPMorgan economist Ian Shepherdson does not see the data as reliable information for the government’s labor market report due on Friday. In addition, details were missing from which one could deduce why the estimates of economists were so clearly exceeded. “We don’t know whether the overshoot is just model-driven or actually due to stronger employment data from ADP customers,” said Shepherdson.
On the corporate side, the DJIA focused on the Dow Inc (Dow) share, bottoming out a little more than three percent. The chemical company announced profit targets worth billions during its capital market day. At the same time, however, he wants to drive his earnings growth with investments worth billions in more environmentally friendly technologies in the coming years.
The paper of the alcohol manufacturer Constellation Brands (Constellation Brands A) fluctuated on the Nyse between gains and losses and ultimately gave way by a little less than one percent. The group disappointed with its second fiscal quarter, but raised its target for earnings per share for 2021/22.
Otherwise moving reclassifications. Goldman Sachs commented negatively on the shares of American Airlines and JetBlue Airways and is now recommending a sell. The papers lost between three and four percent. US Steel (United States Steel), also downgraded to “Sell” by Goldman, plummeted by almost nine percent.
The focus was also on a relatively small stock market debut, which, however, triggered a fireworks display. Shares in e-off-road motorcycle company Volcon, priced at $ 5.50, climbed to $ 15.50 shortly after they started trading. At $ 10.86 they went off the market, which means roughly a doubling in value.
The euro recovered somewhat in US trading after temporarily falling to 1.1529 US dollars in European business, the lowest level since July 2020. At the close of the Wall Street market, the common currency was $ 1,559. The European Central Bank set the reference rate at 1.1542 (Tuesday: 1.1602) dollars. The dollar cost 0.86640 (0.86192) euros.
US Treasuries turned positive after a weaker start. The futures contract for ten-year Treasuries (T-Note-Future) rose by 0.01 percent to 131.75 points. In return, the yield on ten-year paper fell to 1.52 percent. Before that, it had temporarily climbed to its highest level in almost four months./ck/he
— By Claudia Müller, dpa-AFX —
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