Wall Street closes in positive territory – New records for S&P 500 and Nasdaq

Frankfurt The record run on the US stock exchanges continued with small steps on Tuesday. However, the Dow Jones Industrial is still lagging behind. His early gains also fizzled out and so he ended the day almost unchanged with plus 0.03 percent to 34,292 points.

The market-wide S&P 500 also closed with plus 0.03 percent and thus rose to 4291 points. In early trading, it succeeded for the first time in its history to break the 4300 point mark. Likewise, the Nasdaq stock exchanges, which are mainly peppered with technology stocks, topped their records and were able to hold them. The selection index Nasdaq 100 ultimately advanced by 0.33 percent to 14,572 points.

However, the economic data hardly moved the indices. The real estate market continues to record strong price increases. In addition, the mood of US consumers surprisingly brightened significantly and rose again to the level shortly before the Corona crisis. “Even if the mood recovery is impressive, it is only partially reflected in the spending behavior of consumers,” said market analyst Michael Hewson from CMC Markets and recalled the fall in retail sales in May.

On the corporate side, the focus was primarily on the banking sector. The leading Wall Street banks want to distribute more money to shareholders after passing the stress test. Morgan Stanley wants to double the quarterly dividend to 70 US cents and use up to twelve billion dollars for share buybacks. The shares rose by 3.4 percent as the top value in the S&P 100, while Citigroup’s shares lost 2.6 percent at the end of the index. This bank does not want to change its previous plans for the time being.

Top jobs of the day

Find the best jobs now and
be notified by email.

Dow members Goldman Sachs and JPMorgan, like Morgan Stanley and Bank of America (BofA), want to raise their dividends, which brought Goldman shares up 1.1 percent. The gains in JPMorgan shares disappeared by the end of trading, however, at the end of the day a minus of 0.1 percent was posted. BofA’s shares fell 1.6 percent.

The focus also shifted to the shares of Moderna, which jumped to a record high and finally brought in a plus of 5.2 percent. They benefited from the fact that India has now also approved the US biotech company’s corona vaccine. In addition, according to the company, the Moderna vaccine also stimulates an immune response against the Corona variant Delta (B.1.617.2), which first appeared in India.

The euro hovered around the US $ 1.19 mark in the course of US trading and then cost US $ 1.1900 at the close of the Wall Street market. The European Central Bank (ECB) set the reference rate in the afternoon in Frankfurt at 1.1888 (Monday: 1.1910) dollars. The dollar cost 0.8412 (0.8396) euros. On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) rose by a small 0.02 percent to 132.27 points. The ten-year bond yield fell to 1.476 percent.

US house prices are rising

The sharpest rise in US house prices in 15 years is giving home builders a boost. Pulte Group, DR Horton, Toll Brothers, KB Home and Lennar stocks are up as much as 2.5 percent. The likely permanent trend towards home offices is fueling the demand for single-family homes outside the metropolitan areas, says James Knightley, chief economist at ING Bank.

Two days before a meeting of the major oil exporting countries, the price of the US WTI was within reach of its most recent three-year high at $ 72.87 a barrel (159 liters). Investors immediately used setbacks to get started, said Neil Wilson, chief analyst at online broker “The market environment remains solid and the supply scarce.” Experts assume that “Opec Plus” will only moderately loosen its subsidy brakes despite the increasing demand.

Gold miners and Facebook stocks are falling

In contrast, investors threw gold from their portfolios. The precious metal, which is often used to protect against inflation, fell by almost a percent to $ 1,762 per troy ounce (31.1 grams). Investors saw the latest statements from some Fed bankers as a sign that US interest rates will rise earlier than expected, said analyst Ricardo Evangelista of the brokerage firm Activtrades.

Against this backdrop, the shares of gold miners such as the US-listed shares of Anglogold Ashanti, Barrick, Gold Fields, Harmony and Newmont fell by up to 0.8 percent.

After Facebook’s legal victory over the US antitrust authority FTC, which tried to force the online network to sell the messenger service WhatsApp and the image and video platform Instagram, some investors are cashing in. The stock lost 1.05 percent, but at $ 351.89 it remained in close contact with its recent record high.

However, Facebook had to leave the exclusive club of US companies with a market value of more than one trillion dollars. Market capitalization fell to just under $ 996 billion.

Dingdong jumps 19 percent on its stock market debut

The food delivery service Dingdong from China, which is co-financed by the Japanese tech investor Softbank, made significant gains on its US stock market debut. This brought the company, which had previously slimmed down its leap onto the retail floor, to a market valuation of $ 6.6 billion.

The share price started at $ 28 per ADS after the papers were issued at $ 23.50. This corresponds to a price jump of 19 percent. Dingdong had taken in a good 95 million dollars with its significantly reduced IPO. The original target was up to $ 357 million. Delivery services have gained in importance in the corona crisis, and the competition is correspondingly fierce.

Marin Software shares rise nearly 90 percent at times

In the case of small caps, Marin Software’s shares made it into the top group of the biggest winners on Wall Street on Tuesday. The papers of the specialist in online marketing rose at times by almost 90 percent after they had already doubled their price on Monday.

Within a week, the value has increased more than sevenfold. Marin belongs to the group of so-called “meme” shares. By this, stockbrokers understand values ​​in which small investors encourage each other to buy in relevant Internet forums. The best-known example is the US video game retailer Gamestop.

More: Investors are positioning themselves for a quiet summer – a crash is unlikely.