Frankfurt, New York Wall Street is driven by the hope of a solution to the dispute between Democrats and Republicans over US government spending. The courses, which in the early days of trading were still clearly in the red, turned into positive territory after signs of a compromise. Senate leader Mitch McConnell had previously said his party would support an extension of the federal debt ceiling through December. This should prevent a crisis.
The US leading index, the Dow Jones, closed 0.3 percent stronger at 34,416 points, around 560 points above its daily low. The technology-heavy Nasdaq advanced 0.5 percent to 14,501 points, the broad S&P 500 0.4 percent to 4,363 points.
If there is an agreement between Democrats and Republicans, a month-long stalemate would end. US Treasury Secretary Janet Yellen had already announced days ago that if the debt ceiling of currently 28.4 trillion dollars is not raised, the US may no longer be able to meet its payment obligations from mid-October.
In early trading, prices had come under pressure for fear of an imminent end to the US money glut. The concern was fueled by surprisingly strong US employment figures from the private employment agency ADP. Mike Loewengart, chief investment strategist at brokerage firm E * Trade, said that this could cause the Fed to tighten the monetary policy reins faster than previously thought. Nevertheless, the job creation is also a sign of economic recovery.
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The US employment figures of the private employment agency ADP were surprisingly strong. The bottom line was that the private sector created 568,000 new jobs, according to the survey published by the personnel service provider on Wednesday. Experts surveyed by Reuters news agency had only expected 428,000. In August there had been a revised increase in jobs of 340,000.
“It looks like the data can be rated as ‘tidy’,” said Paul Ashworth, chief economist for the United States at research house Capital Economics. US Federal Reserve Chairman Jerome Powell cited such a development as a prerequisite for curbing securities purchases. The ADP numbers give a foretaste of the official data on Friday, which the Fed will be looking at.
At the same time, the high energy prices fueled speculation that inflation will not subside as quickly as hoped, said analyst Ipek Ozkardeskaya from Swissquote Bank. “Therefore, the central banks are being forced to cool the hot inflation instead of supporting the economic recovery.” The US crude oil WTI climbed to a seven-year high of 79.78 dollars a barrel (159 liters) and was US natural gas At $ 6.466 per million BTU, it was as expensive as it was seven and a half years ago, before profit-taking began.
Look at individual values
General Motors: The US automaker wants to double its sales by 2030. That said CEO Mary Barra at a two-day investor conference in Michigan. That would be annual sales of around $ 244 billion by 2030. At the current pre-tax profit margin of twelve percent, this would result in an annual pre-tax profit of around $ 29 billion. That didn’t help General Motors’ stock, as it fell by more than one percent in the course of trading.
Constellation Brands: The beer and wine maker reported adjusted quarterly earnings of $ 2.38 per share, missing the consensus estimate by 39 cents. The company beat Wall Street projections in sales and increased its earnings outlook for the full year. Investors apparently cashed in, the shares traded 0.59 percent in the red.
Palantir Technologies: The share rose at times by more than five percent. The company received won a $ 823 million army contract for its Gotham platform, an operating system that streamlines defense decision-making.
Norwegian Cruise Line: CEO Frank Del Rio said on a broadcast on US television broadcaster CNBC that the company would get its entire fleet back on stream in April for the first time since the pandemic began. 75 percent of the ships are scheduled to sail again by the end of the year. Norwegian shares fell 0.6 percent.
Seagate Technology: The shares of the hard drive manufacturer slipped in the meantime by more than five percent after the US bank Morgan Stanley downgraded the shares from “overweight” to “neutral”. The reason is the deteriorating industry data such as increasing inventories and a decline in the companies’ investment plans.
Facebook: CEO Mark Zuckerberg responded to accusations by whistleblower Frances Haugen, saying the company does not put profits above safety. Zuckerberg published a blog post addressing the allegations after Haugen testified in front of a Senate committee Tuesday. The shares fell by 0.5 percent at times, but were back in the profit zone at the end of trading.
More: Dax slips below the 15,000 point mark.