Stocks New York: Dow slightly down – Nasdaq slightly up | 8/1/22

NEW YORK (awp international) – The US stock market did not show a clear trend on Monday after important sentiment data from US industry. The Dow Jones Industrial fluctuated between gains and losses. The Nasdaq 100, which is predominantly stocks of technology stocks, turned positive after a somewhat weaker start and held there. As reported by the Institute for Supply Management (ISM), sentiment in US industry fell to its lowest level in more than two years at 52.8 points in July. However, economists had expected an even more pronounced drop to just 52.0 points.

The Wall Street index Dow fell after an initial up and down in early trading by 0.23 percent to 32,771.10 points. In the past week it had gained three percent and recovered by almost seven percent in the normally rather weak stock market month of July.

The market-wide S&P 500 lost 0.30 percent on Monday to 4117.75 points. The Nasdaq 100 also advanced 0.22 percent to 12,975.88 points. The technology selection index even rose by almost 13 percent in July, after falling to its lowest level since autumn 2020 in mid-June.

“The Purchasing Managers’ Index has exceeded the consensus estimate and is also still clearly in the expansion zone,” emphasized Helaba’s economist Ulrich Wortberg positively. “Against this background, doubts about growth should not increase and the US Federal Reserve can stick to its plan to initially raise interest rates further to curb inflation.” The Postbank experts also viewed the data positively: Although the ISM had fallen, it still pointed to slight growth, which supported corporate profits at the start of the third quarter.

Among the individual stocks in the Dow, shares in aircraft manufacturer Boeing rose by 6.0 percent. According to circles, the group is about to resume deliveries of the long-haul jet 787 (Dreamliner). The group has received preliminary approval from the US Federal Aviation Administration, the Bloomberg news agency reported, citing people familiar with the matter. According to RBC analyst Ken Herbert, this is good news not only for Boeing stock but for the sector as a whole. Goldman analyst Noah Poponak expects this will now unlock significant cash inflows and ease concerns about the capital structure.

Alibaba was almost unchanged after a significant price slide on Thursday and Friday. The Chinese Amazon competitor announced that it wants to work with the US authorities to keep the previous listing on the New York Stock Exchange (NYSE) in addition to the new listing in Hong Kong. On Friday, the US Securities and Exchange Commission (SEC) put Alibaba on a list of companies threatened with delisting.

Celsius shares jumped 12.3 percent to $99.90 and Pepsico gained 0.9 percent. The soft drink company and Coca-Cola competitor has secured an 8.5 percent stake in the fitness and energy drink maker for $550 million, or $75 a share.

Twitter titles fell 1.8 percent. Tech billionaire Elon Musk filed a response to the short message service’s lawsuit in the legal battle over his withdrawn takeover bid. However, the document from Friday is not publicly available for the time being. Musk’s lawyers have a few days under court rules to release a version devoid of confidential details./ck/he

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