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NEW YORK (Dow Jones) – The previous day’s interest rate worries no longer frighten Wall Street on Thursday. Both the S&P 500 (+ 0.6%) and the Nasdaq Composite (+ 1%) hit new all-time highs. The Dow Jones Index rises 0.7 percent to 34,115 points. According to the hawkish statements about Monetary policy by the president of the US Federal Reserve in Atlanta, Raphael Bostic, the day before, the fear of a change in monetary policy towards more tightening and high inflation seems to have diminished again. Market participants are increasingly convinced that interest rates are unlikely to rise for quite a while. In addition, a majority of pension managers do not expect a reduction in securities purchases before the first quarter of 2022, as a survey reveals.
The prospect that the era of cheap money is not yet over has driven technology stocks up on the Nasdaq in particular this week. The Nasdaq composite hit record highs on a closing basis for two days in a row. But even a tightening of monetary policy is not necessarily seen as frightening by many market participants. “In an environment of strong growth, the markets can digest a somewhat less supportive monetary policy,” says Fund manager Sebastian Mackay from Invesco. The prospects for corporate figures are pretty good and the central banks could consider backing off from their ultra-loose monetary policy.
However, new data does not nourish this concern. Weekly data on the currently highly regarded labor market turned out to be somewhat weaker than expected. The weak data from the previous week had already caused some horror. At the same time, the current incoming orders for durable goods rose a little less strongly than experts anticipated, but still rose solidly. The data do not suggest any pressure to act in the direction of tightening the monetary policy screw.
On the foreign exchange market, the dollar index rose by another 0.1 percent according to the Bostic statements of the previous day. As the dollar rallies slightly, the gold price will fall slightly, and Bostic saw the interest rate turnaround as early as the coming year. Like gold, the oil price hardly moves, but remains at a high level. The ten-year yield on government bonds is practically unchanged after the Bostic statements here had caused a tailwind the day before. With the prospect of a Rate hike In 2022, the yields on two-year US Treasuries will be at their highest level in 14 months. The short end of the market is more sensitive to interest rate speculation.
H.B. Fuller with a view lighter
The adhesive manufacturer H.B. Fuller did better than forecast in its second quarter. However, the company expects a higher increase in raw material costs than previously assumed. The share sags by 3.9 percent.
Supported by good news, Eli Lilly’s stock made a jump of almost 7 percent. The drug company has reported that the US FDA is classifying its Alzheimer’s drug as a breakthrough therapy. This decision should accelerate the drug’s development and approval process.
The paper from competitor Biogen, however, collapses by 6.2 percent. Biogen received FDA approval for its Alzheimer’s drug earlier this month. Various doctors and scientists had criticized the authority for this. Now competition is threatening.
Things are going better for Steelcase (+ 3.9%) after the office supplier reported a 15 percent increase in sales. The result was also better than analysts had expected. KB Home missed the even higher consensus estimate despite a sales increase of 58 percent in the past quarter. That the profit was better than expected does not help, the price is back by 6.2 percent.
The technology company Confluent is facing a brilliant explosion. The operator of the event streaming platform of the same name set the issue price at 36 dollars per share and thus above the price range of 29 to 33 dollars. The Silicon Valley company is valued at $ 9.1 billion. With the offering of 23 million shares, Confluent should raise $ 828 million.
INDEX last +/-% absolute +/-% YTD
DJIA 34,115.02 + 0.71% 240.78 + 11.5%
S&P 500 4,267.13 + 0.60% 25.29 + 13.6%
Nasdaq Comp. 14,409.58 + 0.97% 137.85 + 11.8%
Nasdaq-100 14,423.28 + 1.04% 149.04 + 11.9%
Maturity Yield Bp to VT Yield VT +/- Bp YTD
2 years 0.26 0.0 0.26 14.4
5 years 0.91 2.9 0.88 54.8
7 years 1.24 0.3 1.24 59.2
10 years 1.48 -0.5 1.48 56.2
30 years 2.10 -1.0 2.11 45.0
Forex last +/-% Thu, 8:17 am Wed, 5:12 pm% YTD
EUR / USD 1.1930 + 0.02% 1.1927 1.1944 -2.3%
EUR / JPY 132.26 -0.07% 132.18 132.41 + 4.9%
EUR / CHF 1.0957 + 0.05% 1.0961 1.0956 + 1.4%
EUR / GBP 0.8576 + 0.40% 0.8542 0.8555 -4.0%
USD / JPY 110.86 -0.11% 110.98 110.86 + 7.3%
GBP / USD 1.3912 -0.36% 1.3962 1.3962 + 1.8%
USD / CNH (offshore) 6.4738 -0.08% 6.4831 6.4772 -0.4%
BTC / USD 34,057.26 + 2.00% 32,511.51 33,727.51 + 17.2%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 73.07 73.08 -0.01% -0.01 + 51.1%
Brent / ICE 75.30 75.19 + 0.15% 0.11 + 46.9%
METALS last previous day +/-% +/- USD% YTD
Gold (spot) 1,778.25 1,779.00 -0.04% -0.76 -6.3%
Silver (spot) 26.01 25.88 + 0.53% +0.14 -1.4%
Platinum (spot) 1,096.30 1,088.58 + 0.71% + 7.73 + 2.4%
Copper future 4.30 4.33 -0.73% -0.03 + 21.9%
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DJG / DJN / flf / raz
(END) Dow Jones Newswires
June 24, 2021 12:33 ET (16:33 GMT)