new York After the recent price slide, investors took the opportunity to re-enter the US stock market. The standard value index Dow Jones rose on Thursday after initial losses by 1.1 percent to 25,745 points. The technology-heavy Nasdaq and broad-based S&P 500 each gained around one percent after all three lost more than two percent on Wednesday.
Financials in particular rose. The background to this is the easing of regulations that make life easier for large banks with large trading and investment portfolios. The S&P Financial Index rose 2.7 percent.
“Apparently the market needs new directions,” said JJ Kinahan, chief investment strategist at TD Ameritrade brokerage firm. For example, the increasing number of infections in the USA is not a reason for a larger sell-out. “Without new impulses, which make investors optimistic, it will not go up significantly either.” Thanks to the multi-billion dollar stimulus from the Fed and government, the US stock markets are currently trading around 40 percent above their March lows.
The US economic data presented during the day painted a mixed picture of the state of health of the world’s largest economy. Last week, nearly 1.5 million Americans applied for US unemployment benefits. Experts had expected 1.3 million. By contrast, incoming orders for durable goods grew by a surprisingly strong 15.8 percent in May.
The latter gave the oil price tailwind. The US variety WTI rose after initial losses by 2.7 percent to $ 39.04 a barrel (159 liters). Investors were hoping that despite the rising infection numbers, drastic pandemic restrictions could be avoided again, said analyst Gene McGillian from the consulting firm Tradition Energy.
Investors have been headacheed by the renewed tensions between the United States and China, as well as new punishment threats to Europe, said Neil Wilson, chief analyst at online broker Markets.com. “The White House couldn’t have found a better time to produce new horror news for the stock exchanges.”
Against this backdrop, the “anti-crisis currency” gold remained in touch with its eight-year high from the previous day. It cost $ 1763 per troy ounce (31.1 grams).
Look at the individual values
Walt Disney was one of the losers in the US with a 1.6 percent drop in price. The entertainment company is postponing the reopening of the Disneyland amusement park there due to the rising corona infections in California.
Accenture shares, meanwhile, rose temporarily by nearly eight percent to a record high of $ 217.85. Quarterly sales and the management consultant’s profit had exceeded market expectations, wrote analyst Bryan Bergin of the wealth manager Cowen. However, the outlook for the current quarter is mixed.
Bank stocks, on the other hand, rose particularly strongly. Not only did they recover from losses from previous days, they also benefited from the relaxation of the “Volcker Rule” decided in the wake of the financial crisis. The change approved on Thursday relativises, among other things, a ban on financial institutions to invest in private equity or hedge funds. Goldman Sachs rose 4.6 percent at the top of the Dow and JPMorgan gained 3.5 percent. In the S&P 100, Citigroup, Bank of America and Morgan Stanley and Wells Fargo shares were favorites.
Better than expected quarterly figures on the New York Stock Exchange also resulted in significant price gains for H.B. Fuller papers of 4.4 percent. Both sales in Henkel’s competitor’s second quarter and adjusted earnings per share had exceeded analysts’ estimates. Macy’s also lost 4.1 percent. The ailing US department store chain cut another 3,900 jobs as part of a new austerity program in the face of the Corona crisis.
Only after the stock exchange closes will partial results of the much-noticed bank stress test be published. In addition, the sporting goods manufacturer Nike announces its figures for the past financial year. Its shares in the Dow previously rose by 1.3 percent in line with the market and then came under pressure after the exchange. The company was hit hard by the corona crisis.
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