NEW YORK (dpa-AFX) – On Wall Street, the mood among investors on Thursday remains tense. The focus was on disappointing Walmart numbers and the ongoing discussion about a return of inflation. The previous day’s record-high Dow Jones Industrial (Dow Jones 30 Industrial) fell by 0.90 percent to 31,329.39 points at the end of the first hour of trading. It was at its lowest level in a week.
According to stockbrokers, as bond yields rise, concerns are growing that higher borrowing costs could put an end to the record rally for the time being. This can also make fixed income more attractive in the future as an alternative to stocks. Against this background, the market-wide S&P 500 fell on Thursday by 1.01 percent to 3891.73 points.
According to stockbrokers, investor concerns weigh particularly heavily on tech companies, which will generate a large portion of their cash inflows in the future and are therefore particularly vulnerable to inflation. In addition, a star investor recently switched from tech giant Apple to standard values. The technology-heavy selection index NASDAQ 100 fell 1.45 percent to 13,500.83 points.
Against the background of interest rate concerns, investors also looked to fresh US economic data. The prices for goods imported into the USA rose faster than expected at the beginning of the year. In addition, the number of initial jobless claims rose surprisingly last week. In contrast, the business climate in the Philadelphia region deteriorated less than expected in February.
Under the current circumstances, Apple shares (Apple) were among the bigger Dow losers, just like the day before. With a minus of more than two percent, they fell below 128 US dollars to their lowest level in just over a month. On Wednesday it became known that investor legend Warren Buffett reduced his exposure to the stock.
By far the biggest loser in the Dow was Walmart’s shares, which fell 5.5 percent. Booming online sales made business buzz at the largest US retailer during the pandemic, but high costs and expenses ruined his balance sheet. For 2021, Walmart issued a cautious business outlook, which, in addition to the quarterly loss, was not well received by investors. This also weighed on the 2.6 percent weaker shares of competitor Target.
The mood was also bad among the shareholders of Boeing, the shares fell 2.3 percent as the second largest loser in the Dow. Here the specifications from Europe were gloomy, with significant price losses also at Airbus (Airbus SE (ex EADS)). The corona crisis and the planned job cuts have caused the European competitor to lose billions.
Winners were generally in short supply. In the S&P 500, the shares of Kraft Heinz (Kraft Foods Group), which had already risen sharply the day before, had a positive impact with an ongoing price rally. With another price jump of 4.7 percent this time, the shares consolidated their highest level since a significant price slide a good two years ago. According to experts, the paper broke an important technical chart mark on Wednesday, which is now leading to follow-up purchases. / Tih / he
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