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 value index Dow Jones and the broad S&P 500 rose to record highs of 35,751 and 4,555 points, respectively, at the opening. In contrast, disappointing figures from Intel and Snap pushed the Nasdaq technology index 0.2 percent into the red.
The shares of the chip manufacturer posted the biggest slide in a year with a minus of almost 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 22 percent, as much 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 five percent.
US stock market expert Koch: “Bad news from the tech sector – but Wall Street remains stable”
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 4.8 percent.
Whirlpool: The household appliance manufacturer’s share 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, but revenue fell short of forecast.
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.
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.
Mattel: The prospect of strong Christmas sales encourages investors to get started. The toy manufacturer’s shares rise 0.8 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.
Intel: A disappointing margin outlook triggers a sell-off at Intel. The shares of the chip manufacturer fell in the US business by 11.1 percent, as much as last a year ago. In addition, investors doubted the company could meet its ambitious revenue growth targets, said Matthew Ramsay of asset manager Cowen. Intel must submit to regain trust.
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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