Trader Peter Tuchman works on the floor of the New York Stock Exchange.
(Photo: dpa)
Frankfurt The bottom line is that encouraging company balance sheets keep Wall Street prices high. The US standard stock index Dow Jones and the broad S&P 500 rose to record highs of 35,751 and 4,555 points, respectively, at the opening. As a result, however, profit-taking set in – the indices gave up their small plus again. Disappointing numbers from Intel and Snap pushed the technology index Nasdaq 0.8 percent into the red.
The shares of the chip manufacturer posted the biggest slide in a year with a minus of more than eleven percent. Because of investments worth billions, the company prepared investors for profit margins below previous expectations for the coming years.
The current price setback is certainly only temporary, said analyst Jeffrey Halley from brokerage house Oanda. Betting against the big tech companies has been a surefire way to lose money in the past two years.
Snap’s papers even collapsed by 25 percent, as badly as they did in the stock market crash in March 2020. The Snapchat operator had presented a disappointing quarterly result and warned of further losses in advertising income.
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The burdens from the new data protection requirements for Apple’s iPhone and other factors are only temporary, wrote analyst John Blackledge of the asset manager Cowen. The longer-term sales and profit prospects remained good. In the wake of Snap, the shares of Twitter, Facebook and Google parent Alphabet fell by up to six percent.
Look at further individual values
American Express: A global increase in consumer spending thanks to the general relaxation of corona restrictions and more and more vaccinations are giving the US credit card provider a boost. After months of spending stagnation in the pandemic, credit card issuers around the world are seeing a turnaround with the return of social activities. The share rose five percent.
Whirlpool: The household appliance manufacturer’s share initially fell 2.7 percent because the company warned of “increased” delivery bottlenecks. Whirlpool reported adjusted quarterly earnings of $ 6.68 per share, beating the consensus estimate of $ 6.12. However, sales fell short of forecasts. Still, the stock turned into profit later and was 2.3 percent higher.
Digital World Acquisition (DWAC): The merger partner of the former US President Donald Trump for the planned Twitter competitor is causing a stir with renewed price jumps. The shares of the empty corporate shell (Spac) tripled their price on Friday to $ 131.90 after they had already more than quadrupled on Thursday. Later they were 133 percent higher at $ 106.
Because Twitter and Facebook have banned Trump from their platforms because of his role in the storming of the Capitol, he wants to compete with these companies with “Truth Social”. The launch of a beta version of the social network is planned for the next month.
“The Trump name is still a selling point,” said Neil Wilson, chief analyst at online broker Markets.com. “But I don’t see the majority of Facebook and Twitter users giving up their accounts for this.” Trump supporters and voters would certainly give the new platform a chance.
US stock market expert Koch: “Bad news from the tech sector – but Wall Street remains stable”
Mattel: The prospect of strong Christmas sales encourages investors to get started. The toy manufacturer’s shares rise 1.6 percent to $ 20.45. The surprisingly strong quarterly results showed that the management coped well with the supply chain disruptions, praises analyst Linda Bolton Weiser from research house DA Davidson. They therefore reiterate their buy recommendation and raise the price target to 36 dollars.
Tesla: The latest quarterly results give Tesla another tailwind. The electric car maker’s shares rose 1.6 percent to a record high of $ 907.88. Thanks to high margins, strong demand, progress in production and low debt compared to the market value, Tesla is seen as a safe bet, the analysts from the research house Zacks write.
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