Investors are using the latest price setbacks to re-enter.
(Photo: dpa)
Frankfurt, New York After the sell-off at the beginning of the week, the prices on Wall Street have stabilized again. However, investors remained cautious ahead of the Fed meeting. The Dow Jones index of standard values closed on Tuesday 0.2 percent lower at 33,919 points. The broad S&P 500 lost 0.1 percent to 4,354 jobs. The technology-heavy Nasdaq advanced 0.2 percent to 14,746 points.
The uncertainty remained high. Several topics came together that led to the sell-off of stocks at the start of the week, said manager Andre Bakhos of New Vines Capital. In addition to concerns about the delta variant of the corona virus and sluggish economic growth, there was fear of a possible default by China’s second largest real estate developer Evergrande.
Investor focus was on Wednesday’s Federal Reserve (Fed) meeting. Stockbrokers expect that they will lay the foundation for reducing their support measures (tapering), but that the actual announcement will be postponed until the November or December meetings. The prospect of dismantling massive asset purchases has already weighed on the markets.
“It depends on how the tapering is presented,” said Bakhos. “Ultimately, we will see some measures taken to curb inflation worries. The market is already nervous, and if they say they’ll start tapering it will cause a stir in the short term. “
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Economist Christian Scherrmann from the fund company DWS does not expect any significant changes. The recent moderate recovery in the labor market and the uncertainty surrounding the delta variant of the coronavirus reduced the pressure to prematurely adjust the very loose monetary policy to support the economy.
Brent crude oil from the North Sea rose by almost one percent to $ 74.53. According to ANZ Bank analysts, the production losses in the Gulf of Mexico caused by cyclone “Ida” continued to have an impact.
Look at individual values
Draftkings: The shares of the US sports betting company Draftkings lost 7.5 percent after the broadcaster CNBC reported a $ 20 billion purchase offer for the British betting company Entain. The shares of the parent company of the British betting company Ladbrokes, on the other hand, gained 18 percent. In January, Entain rejected an offer from US casino operator MGM Resorts for $ 11 billion as being too low. During the pandemic, demand for online betting boomed as customers gambled from home due to closed casinos and betting shops.
Above: Uber shares rose 11.5 percent. More than a decade after it was founded, Uber has the prospect of its first operating profit – at least after deducting various costs. The driver service operator burned billions of dollars on its global expansion with the promise of later profits. Uber announced on Tuesday that it was in the black on an adjusted basis before interest, taxes, depreciation and amortization in the months of July and August.
Apple: Apple shares rose slightly. The “Wall Street Journal” reported that the technology company is working on iPhone functions to detect depression, for example. The functions would use very special sensor data.
Big Lots: The shares of Big Lots fell by almost six percent by the end of trading after Piper Sandler’s equity experts downgraded the retailer from “Overweight” to “Neutral”. The company said the end of fiscal stimulus would hurt big lots.
Walt Disney: At the Dow end, the shares of the entertainment company Walt Disney sagged by more than four percent. The CEO Bob Chapek had warned investors at a conference of the bank Goldman Sachs that the spread of the Delta variant would delay production and lead to unsteady growth in the streaming business.
More: Evergrande share crashes – Bitcoin and Ether also lose.