Frankfurt Strong bank balance sheets and a surprising increase in retail sales are making US equity investors more risk-averse again. Goldman Sachs shone on Friday just like the money houses in the days before with a profit boost. The Dow Jones index of standard values rose 1.09 percent to 35,294 points. The broader S&P 500 climbed 0.75 percent to 4,471 points. The index of the technology exchange Nasdaq rose by 0.5 percent to 14,896 points.
The balance sheet season so far indicates that the large corporations could continue to achieve profit growth despite rising costs, said market strategist Neil Wilson of Markets.Com. Apparently, investors are currently ignoring the high commodity prices and supply chain problems.
Goldman Sachs shares rose 3.8 percent by the close of trading, dragging the banking index up with them. “The banking system is in great shape and it’s been a great pillar of the economy,” said Josh Wein, portfolio manager at Hennessy Funds. In this positive environment, investors also took hold of other bank stocks. The shares of Morgan Stanley, Citigroup, Bank of America and Wells Fargo rose by a good one to almost seven percent.
The fact that US retailers increased their sales in September despite bottlenecks also contributed to the good mood. It grew by 0.7 percent compared to the previous month. Economists polled by Reuters, on the other hand, had expected a decline of 0.2 percent. According to preliminary data, consumer sentiment was slightly below expectations in October. “Christmas will be the real test for the supply chain,” said Wein. It was already known on Thursday that the number of weekly initial jobless claims fell below 300,000 for the first time during the Corona crisis. This solidified hopes of a recovery in economic growth.
Top jobs of the day
Find the best jobs now and
be notified by email.
Hope in the travel sector
The planned lifting of entry restrictions for vaccinated US travelers from November 8th spurred the US travel industry. The S&P Airlines Index rose by 1.5 percent over the course of the year, while the cruise companies Carnival, Royal Caribbean and Norwegian Cruise Line gained up to 2.1 percent. Travelers must then present a US-recognized Covid vaccination before departure.
Companies from the crypto sector benefited from a jump in the price of the cyber currency Bitcoin. The shares of the mining company Riot Blockchain, Marathon Digital and Bit Digital gained up to six percent. The largest and oldest cyber currency cracked the $ 60,000 mark on the Bitstamp trading platform for the first time since mid-April, as more and more investors are turning to Bitcoin in search of inflation protection. According to analyst Timo Emden from Emden Research, the drivers of the latest Bitcoin rally are also speculations about the approval of the first US Bitcoin futures ETF. “The approval of an exchange-traded fund on American land would be an accolade for Bitcoin and Co,” said Emden.
With oil prices soaring, oil company stocks were also among investors’ favorites. Chevron prices rose by around one percent. US oil WTI temporarily hit a fresh seven-year high at $ 82.30 a barrel.
US stock market expert Koch: “Surprisingly robust consumption lifts sentiment on Wall Street”
Look at further individual values
Moderna: The stock rose for the second straight day after the FDA recommended a booster dose of Moderna’s Covid-19 vaccine. The panel recommended allowing a booster dose for people aged 65 and over, as well as for those at high risk. After an increase of 3.2 percent on Thursday yesterday, it is down 2.5 percent on Friday.
Curevac: The shares of Curevac lost more than twelve percent. The biotech holding Dievini of SAP co-founder Dietmar Hopp wants to reduce its considerable stake in the Tübingen biotech company. On Tuesday, Curevac withdrew its first vaccine against the coronavirus from the European approval process. The effectiveness of the agent had proven to be comparatively weak.
Virgin Galactic: Virgin Galactic shares plunged up to 20 percent. The space flight company has postponed the commercial launch of its own space service planned for mid-2022 by a month. Billionaire Richard Branson’s company lost around a fifth of its market capitalization on the stock exchange.
Alcoa: The company reported adjusted quarterly earnings of $ 2.05 per share, beating the consensus estimate of $ 1.80. The aluminum manufacturer’s sales also exceeded estimates due to higher aluminum prices. Alcoa stock rose 15.9 percent.
More: 15 stocks with market power: who sets the prices in times of inflation