Wall Street is once again on the road to success.
(Photo: AP)
Frankfurt Based on price gains from large corporations such as Tesla and PayPal, Wall Street gained at the beginning of the week. The Dow Jones gained 0.2 percent to 35,741 points. The tech-heavy Nasdaq advanced 0.9 percent to 15,227 points and the broad S&P 500 advanced 0.5 percent to 4566 points. The Dow and S&P were again highs.
The titles of gas producers such as CNX, Vine and Chesapeake, which were up to 9.2 percent more expensive, were in demand. They benefited from the rise in the US gas price. The prediction of a more pronounced drop in temperature in the USA than previously expected drove the price of this energy source up.
Investors were also worried about the ongoing oil price rally. Because of the supply bottleneck, further dwindling inventories are generally expected for the coming months, said analyst Tamas Varga from the brokerage company PVM. “Just a dent in demand could change sentiment.”
The high commodity prices fueled inflation concerns and speculation that the US Federal Reserve would tighten monetary policy prematurely. “There is a perception that the Fed is lagging behind the development and will be forced to act,” said investment strategist Michael Hewson of brokerage firm CMC Markets. US Federal Reserve Chairman Jerome Powell signaled an impending curb in security purchases on Friday, but issued a temporary rejection of interest rate hikes.
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Tesla: Tesla set two records at once: The electric car maker cracked the $ 1 trillion market value and exceeded the $ 1,000 mark for the first time with its share price. This means that the US group is valued almost twice as high on the stock exchange as BMW, Daimler, Volkswagen, Toyota, General Motors (GM), Ford and Stellantis combined. The closing price was just under $ 1,025, an increase of 12.6 percent. The rally was triggered, among other things, by an order for 100,000 vehicles by the car rental company Hertz. Tesla boss Elon Musk was surprised by the development on Twitter: The problem of his group is actually not the demand, but the ramping up of production.
Paypal and Pinterest: PayPal investors reacted relieved to the canceled billion dollar takeover of the online pinboard Pinterest. Analysts had doubted the benefits of a merger from the start. PayPal stocks rose 2.7 percent and Pinterest stocks fell 7.4 percent.
Facebook: Brokers also turned their attention to Facebook’s numbers, which were due for publication after the US market closed. “After Snap choked on an apple, investors will have a nervous finger on the sell button, should the social network announce something similar,” said analyst Jeffrey Halley of brokerage firm Oanda. Disappointing quarterly results and the warning of further losses in advertising income due to new data protection requirements for Apple’s iPhone had brought the Snapchat operator Snap a record price fall on Friday.
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Kimberly-Clark: The share of the consumer goods company slipped about three percent in the meantime, after the quarterly earnings were three cents per share below the estimate of USD 1.62 per share. Revenue was slightly above forecast, but Kimberly-Clark’s results were impacted by higher inflation and supply chain issues.
Whirlpool: Whirlpool was downgraded to “underperform” by “Sector Perform” at RBC Capital. One of the reasons for this was the device manufacturer’s loss of market share in North America. In the course of trading, the share lost more than one percent.
Pfizer, Biontech: Pfizer and Biontech’s Covid-19 vaccine showed 90.7 percent effectiveness in children ages 5-11. Health officials say the vaccine could be rolled out to children as early as November. Pfizer shares fell 0.2 percent, while Biontech shares rose just under six percent.
Moderna: In the series of clear price winners on the Nasdaq, the Moderna share lined up with an increase of about seven percent. According to its own information, the US vaccine manufacturer has successfully tested its vaccine against Covid-19 in a study in children. So far, the drug has been approved in the European Union for children and adolescents from 12 years of age, but in the USA only from 18 years of age.
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