The leading Dow Jones index on Wall Street fell to its lowest level in almost two months. Delivery bottlenecks, port closures and shortages of containers continue to occupy the US stock exchanges.
The eagerly anticipated inflation data from the US did not give a boost to Wall Street quotes on Tuesday.
It is true that consumer prices in August did not rise quite as strongly as expected from a high level. However, this only resulted in slight price gains in the first few minutes of trading. Then the leading index, the Dow Jones Industrial, turned into the red, widened the losses and fell to its lowest level in almost two months. In the end, the Dow saw a discount of 0.84 percent to 34,577.57 points.
The broader S&P 500 lost 0.57 percent to 4,443.05 points. The technology-heavy Nasdaq 100 held up a little better with a minus of 0.33 percent to 15,382.90 points.
“The inflation rate fell marginally,” noted economist Bernd Krampen from Landesbank NordLB. The price drivers of the past few months such as used cars, hotel stays and flights have “experienced a certain normalization”. However, goods bottlenecks, delivery interruptions, port closures and the shortage of containers kept price pressure high overall, which is likely to continue for longer.
Analyst Edward Moya from trading house Oanda wrote in a market commentary that the companies had not fully passed on rising producer prices to end consumers. This raises questions about profitability and has pushed share prices down during trading.
The quarterly figures of the SAP counterparty Oracle were badly received by investors. The analysts from JPMorgan criticized weak earnings in the business with software licenses, while Internet-based offers had increased strongly. Oracle shares lost almost three percent – after they had risen a good 37 percent since the beginning of the year.
Before the important Christmas business, Apple is giving its iPhones a faster chip and better cameras. However, the new products did not help the Apple share. The paper lost one percent in the weak overall market.
On the other hand, the reaction to a takeover in the software industry was positive: the US software group Intuit is taking over the email marketing service provider Mailchimp. Intuit is paying around $ 12 billion in cash and shares to acquire the private company. The Intuit papers gained two percent.
The casino operator industry came under heavy pressure. The government of the Chinese Macau Special Administrative Region wants to take a closer look at its business in the future, but initially did not provide any details. Macau is known as the Las Vegas of Asia. Shares in casino companies operating there such as Las Vegas Sands and Wynn Resorts fell by around ten percent each. MGM Resorts fell nearly four percent.
Among the smaller titles, Curevac lost eight percent. Due to lower demand for its corona vaccine candidate, the biotech company is downsizing its production network.
US Treasuries benefited from consumer prices. The futures contract for ten-year paper (T-Note-Future) rose by 0.22 percent to 133.59 points. The yield on ten-year paper fell accordingly to 1.27 percent. The euro fell slightly in US trading; at the close of the US market, the common currency cost 1.1806 US dollars. The European Central Bank (ECB) had previously set the reference rate at 1.1814 (Monday: 1.1780) dollars. The dollar had thus cost 0.8465 (0.8489) euros.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
