NEW YORK (dpa-AFX) – Apart from the Dow Jones Industrial, the US stock exchanges on Wednesday continued the losses of the previous day. Weak data from the private job service provider ADP and sentiment in the service sector contributed to economic concerns, which have recently been keeping share prices in check after a good run. Interest rate hikes also remain a topic of debate among investors.
The Dow Jones Industrial benefited somewhat from friendly consumer goods and health care stocks, which weigh less in the other indices. With a rise of 0.08 percent to 33,430.57 points, the Wall Street price barometer remained in touch with the highest level in six weeks, at which it last arrived, with two hours to go.
Things looked bleaker in the technology sector: The Nasdaq 100, which is dominated by this sector and which had reached its highest level since August the previous day, slipped back below the 13,000 point mark. Most recently, he lost 1.27 percent to 12,933.66 points. The market-wide S&P 500 fell by 0.47 percent to 4081.25 points.
The ISM index for the US service sector fell surprisingly sharply, although it still remains above the growth threshold of 50 points. In addition, the data from the job service provider ADP was not a good harbinger of the US government’s labor market report due on Good Friday, which will be analyzed in detail by the Fed. The assumption here is that the stronger the labor market, the greater the wage-driven inflationary pressure and the greater the scope for further rate hikes.
Among stocks, Johnson & Johnson stock was a Dow pillar, up 3.8 percent. The pharmaceutical and consumer goods group wants to settle a major legal dispute over allegedly carcinogenic hygiene products in North America with a lot of money. The company will accept an $8.9 billion settlement to settle all personal care product claims containing the magnesium silicate talc.
Consumer stocks were in high demand, with gains of up to 1 percent for McDonald’s, Coca-Cola and Procter & Gamble in the Dow. The industry is viewed by investors as a defensive choice in uncertain economic times, as are healthcare stocks. From this, Amgen, Merck & Co and Unitedhealth were positive in the Dow with increases of up to 3.1 percent.
In the broad market, Fedex stocks gained almost one percent. The logistics group is restructuring in order to save costs and wants to better consolidate its operational business. The two previously separately operated supply networks in the air and on land are to be combined. According to the company, four billion US dollars could be saved by 2025, which should also benefit shareholders.
In the weak technology sector, chip stocks were negative. With a discount of 3.1 percent, Nvidia was a symbol of the weakness in the industry. It was said on the market that the issue here was a decision by Japan to follow suit with restrictions on the delivery of chip equipment to China.
Shares of T-Mobile US increased by two percent. Just at the general meeting of Deutsche Telekom, its boss Timotheus Höttges had news to announce. The strategic goal of taking over the majority of the US subsidiary was therefore achieved surprisingly early. Previously, control was exercised through a voting rights agreement with Softbank of Japan./tih/he
