Wall Street: Record chase continues: Dow Jones closes over 36,000 points for the first time
Düsseldorf On Wall Street, the record run went into the next round on Tuesday. Good quarterly reports were again cited as a positive argument for the positive market situation, which drove the Dow Jones Industrial record to 36,089 points.
After the Dow Jones Industrial only briefly exceeded the 36,000 point mark the day before, it managed this feat to the end. The New York price barometer went 0.4 percent higher at 36,053 points from trading. Other indices kept pace: the tech-heavy Nasdaq 100 gained 0.4 percent to 15,972 points, while the broader S&P 500 rose 0.4 percent to 4,631 points.
Waiting for the Fed’s interest rate decision on Wednesday kept investors’ risk tolerance in check. “The Fed is very good at telling people in advance what it’s going to do,” said Rick Meckler, partner at asset manager Cherry Lane. No surprises are to be expected in this regard. However, if US Federal Reserve Chairman Jerome Powell does not signal that inflation is cooling down as he had hoped, this could reignite rate hike fantasies.
Under no circumstances will Powell give a time frame for a possible increase in the key rate, predicted Naeem Aslam, chief market analyst at the brokerage house AvaTrade. “The Fed officials will certainly keep their communication as vague as possible to ensure flexibility.”
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In the case of Ethereum, investors took another bold move. The second most important cyber currency after Bitcoin gained up to five percent and was more expensive than ever at 4523.02 dollars. It benefits from speculation that a listed fund (ETF) will soon be admitted to this cryptocurrency, said analyst Timo Emden from Emden Research. Bitcoin was also in demand, also gaining five percent to $ 63,556.
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Budget Notice: Shares in the rental company rose by up to 218 percent and closed 108 percent in the black. The company outperformed analysts’ forecasts with its quarterly results, while also declaring that it will play a major role in the spread of electric cars in the United States. Presumably jointly responsible for the rally were private investors who exchanged information in the online forum Reddit. Avis was one of the favorites on Tuesday in the Wallstreetbets thread and in the Stocktwits chat room.
Tesla: Shares in the e-car manufacturer lost 3.2 percent. CEO Elon Musk had questioned car rental company Hertz’s plan to buy 100,000 Tesla electric vehicles for its rental fleet and downplayed the business’s potential.
Pfizer: The share rose 4.2 percent. The drug maker reported better-than-expected earnings and sales for the third quarter. Pfizer made $ 1.34 a share, 25 cents a share above estimates. The company also issued an improved full-year guidance due to strong demand for its Covid-19 vaccine and other treatments.
Dupont: The chemical company exceeded the analysts’ estimates with its quarterly figures, but lowered its outlook for the year as a whole, citing a slowdown in customer orders due to the global shortage of chips. Dupont was three cents above estimates with earnings of $ 1.15 per share for the third quarter. Independently of this, Dupont announced the takeover of the materials technology company Rogers valued at 5.2 billion dollars, with Rogers papers increasing by almost 30 percent percent after the business became known. The Dupont shares rose 8.8 percent.
Estee Lauder: The cosmetics manufacturer’s shares rose 4.2 percent after the company beat forecasts by the stock exchange. Estee Lauder made $ 1.86 a share for the quarter, compared to a consensus estimate of $ 1.70.
Ralph Lauren: The warning of rising costs in the important Christmas business is overshadowing the fashion company’s increased targets for the year as a whole. The shares of Ralph Lauren made with a minus of 9.7 percent, the largest daily loss in a year and a half. Because the US company has a large part of its products manufactured in Asia, it has to spend additional money according to its own information so that the warehouses are well stocked.
VMWare: Investors use the separation from the parent company Dell to join VMWare. The software company’s shares rose 7.9 percent. The papers of the computer manufacturer Dell fell against it by 3.2 percent. Dell had distributed its 81 percent stake to its own investors, but first received a billion-dollar special dividend to pay off its $ 42 billion mountain of debt. Morningstar analyst Mark Cash believes VMWare will grow faster in the future. The special dividend is a reasonable price for independence.
More: The new cold war: the conflict between China and the United States divides East Asia into two power blocs