Wall Street is on the up again

Trader on the New York Stock Exchange

View of the trading floor of the New York Stock Exchange.

(Photo: dpa)

new York Wall Street extended its recent gains on a rally in technology stocks. The US standard value index Dow Jones closed on Tuesday 1.4 percent higher to 35,719 points. The technology-heavy Nasdaq advanced 3.0 percent to 15,686 points. The broad S&P 500 gained 2.1 percent to 4686 points. In return, the Vix volatility index, which measures investor nervousness, fell by more than 19 percent.

Investors now assumed that the newly discovered Omicron variant of the corona virus would not be as dangerous as initially feared, said Neil Wilson, chief analyst of the online broker Markets.com. In addition, the US economy is robust enough to be able to cope with the planned throttling of securities purchases by the Federal Reserve.

Another boost to sentiment was the easing of Chinese monetary policy. Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank, calculated that the lowering of the quotas for the compulsory deposits of commercial banks at the People’s Bank of China (PBoC) would only provide an additional $ 40 billion for loans. “But in the interplay with the subsidization of green investment loans and the easing of the granting of real estate loans, there are signs of an increasingly growth-stabilizing focus of monetary policy.”

In the hope of a surge in growth in China, investors stocked up on copper, among other things, the world’s largest buyer of which is the People’s Republic. The industrial metal rose 0.6 percent to 9561 dollars per ton.

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Crude oil investors are also relying on a moderate economic burden from Omikron, said Commerzbank analyst Carsten Fritsch. In addition, because of the faltering nuclear talks between the West and Iran, a quick return of Iranian oil to the world market is not to be expected. The US variety WTI gained 4.6 percent to 72.65 dollars a barrel (159 liters).

One of the favorites on the US stock market was Intel with a price increase of five percent. The chip manufacturer wants to bring its subsidiary Mobileye to the stock exchange. According to an insider, the driver assistance system provider could be valued at more than $ 50 billion. With this step, Intel could concentrate more on the core business, commented analyst Abhinav Davuluri from the research house Morningstar. In the slipstream of the Intel rally, papers from competitors such as AMD or NVidia advanced by up to 7.9 percent.

In addition to stocks from the technology sector, they were also looking for stocks from the financial industry. Goldman Sachs gained 2.8 percent and Morgan Stanley 3.3 percent. American Express gained 3.9 percent and Visa 2.3 percent.

Look at the individual values

Apple: Apple shares rose 3.5 percent to another record high. Alongside the general rally in tech stocks, fueled a comment from Morgan Stanley. The experts at the US bank expect the iPhone manufacturer to benefit from new products in the business with so-called virtual reality and autonomous driving.

American Airlines: Also in demand were the papers from American Airlines, which were 1.5 percent more expensive. CEO Doug Parker is retiring and will be replaced by Robert Isom, according to the airline. The decision for an internal candidate is an indication that the company will stick to its previous strategy, said analyst Sheila Kahyaoglu from the investment bank Jefferies. American Airlines is in a good position to benefit from the recovery in air traffic after overcoming the Corona crisis.

Merck and Palantir: At the end of the Dow, the shares of Merck & Co were down 1.6 percent after the investment house Guggenheim had canceled the buy recommendation for the shares of the pharmaceutical company.

US stock market expert Koch: “Tech values ​​lead the recovery on Wall Street”

Novavax: The prospect of early EU approval for Novavax’s coronavirus vaccine is fueling the stocks of the biotech company. They rise just under 25 percent on Wall Street. According to the head of the EU Medicines Agency, EMA, her house could give the Novavax vaccine the green light in the near future. The titles received additional tailwind from a study according to which cross-vaccinations with the active ingredient from Novavax and those from other manufacturers are more effective than two doses of the same vaccine.

Mimecast: The cybersecurity firm agreed to be acquired by private equity firm Permira for a total of $ 5.8 billion. Mimecast papers then rise by six percent.

Constellation Brands: According to a report in the Wall Street Journal, the manufacturer of the Corona beer is planning to build a new brewery in southeastern Mexico. The agreement is to be officially announced this week. The Constellation share increased slightly by 0.4 percent.

GlaxoSmithKline: According to the pharmaceutical company, its Covid-19 antibody treatment is also effective against mutations of the coronavirus such as the Omikron variant. The share rises 0.5 percent.

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