NEW YORK (awp international) – The standard values on Wall Street continued their recent record high on Friday. Technology stocks, on the other hand, were thwarted by the gloomier outlook of some industry companies. Stress also came from current statements by US Federal Reserve Chairman Jerome Powell, who once again signaled the beginning of an exit from the loose monetary policy. “We are well on our way to begin reducing our bond purchases,” said Powell. The so-called tapering should be completed in mid-2022 if the economy as a whole develops as expected.
The Dow Jones Industrial reached another high in early trading at 35,765 points and closed with an increase of 0.21 percent at 35,677.02 points. This resulted in a weekly gain of around one percent for the leading index. The market-wide S&P 500 also posted a record high, but turned into the red and ultimately lost 0.11 percent to 4544.90 points. The technology-heavy Nasdaq 100 lost 0.87 percent to 15 355.07 points.
The quarterly reports published by Intel and Snap the evening before the US market closed dampened the good mood for technology stocks. Intel is being held back by the global shortage of components. Although the group was able to post increases in sales and profits in the past quarter, it scared investors away with the announcement that the business would initially be less profitable in view of the high investments in new plants. The stocks fell as a clear bottom in the Dow by almost twelve percent.
Snap papers fared even worse, plummeting by more than 26 percent. The operator of the photo app Snapchat has been hit hard in its advertising business by Apple’s measures for more privacy on the iPhone. Supply chain problems also had a negative impact because customers invested less in marketing.
The titles of Beyond Meat suffered from a reduced sales forecast of the meat substitute producer for the third quarter and sagged by almost twelve percent. The company claims it is battling declining retail orders, operational challenges and the ongoing effects of Covid-19.
American Express stocks were the top performers in the Dow, gaining 5.4 percent. The credit card company generated more sales than expected in the past quarter and was able to increase its profit significantly thanks to higher spending by its customers.
Tesla’s shares continued their rally the previous day, rising 1.8 percent to a record high. The day before, the electric car manufacturer had shone with impressive business figures.
In US trading, the euro held its slight lead over European business and was last traded at 1.1641 US dollars. The European Central Bank (ECB) had set the reference rate at 1.1630 (Thursday: 1.1637) dollars. The dollar had thus cost 0.8599 (0.8593) euros.
In the case of US government bonds, the futures contract for ten-year Treasuries (T-Note Future) rose by 0.11 percent to 130.33 points. The return on ten-year paper was 1.66 percent./edh/he
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