Wall Street closed slightly higher
Tuesday, 23 February 2021 10:06 pm
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The Leading S&P 500 Index was up 0.1 percentage points at 3,881.31 points, the Dow Jones Industrial Average was up 0.1 percentage points at 31,536.30 points and the Nasdaq was down 0.5 percent at 13,465.20 points.
All eyes were on Union President Jerome Powell on the first day of his half-year monetary policy report to Congress on Tuesday. Powell said the Federal Reserve will pursue much easier policies until the U.S. economy recovers further from the Corona crisis. “The economy is still a long way from our employment and inflation targets,” he added. Therefore, the Fed will continue to support the US economy with rates close to zero until there is a “significant improvement” in recovery.
The recent rise in the yields of US treasuries has dampened investor interest in risky assets, including stocks. Shares of technology companies in particular, which actually supported the broader market last year, are currently under pressure.
“The increase in bond yields certainly prompts investors and markets to reconsider their view of stocks,” said Invesco market analyst Paul Jackson. “Investing in government bonds seems to be the most attractive for the first time in months,” he said.
On a major economic front, it became clear that house prices in the largest metropolitan areas of the United States rose further in December. Home prices rose 9.8 percent year-on-year in ten major regions, and 10.1 percent in the top 20 regions.
U.S. consumer confidence in the economy soared in February. The index rose to 91.3 in February from 88.9 in January.
Traded at Euro / Dollar 1.2149. At the start of the trading day in New York, the currency pair was still at 1.2142 and when the U.S. stock markets closed on Monday, the boards were at 1.2154.
April crude futures futures fell 0.03.0 points on the New York Mercantile Exchange on Tuesday. Ended at 61.67.
On a larger economic level, three releases are on the agenda in the United States on Wednesday. Weekly mortgage applications will appear in advance, followed by new home sales and weekly oil stocks in January.
Company News
Trading in technological heavyweights such as Tesla, Apple, Amazon and Microsoft was volatile on Tuesday. Tesla fell more than 0.5 percent, Apple flattened almost and Amazon eventually rose 0.3 percent. Microsoft lost 0.4 percent.
Home Depot opens its fourth quarter books. During the reporting period, sales were high as the do-it-yourself chain continued to benefit from locking operations, which led consumers to do DIY. Comparable sales in the U.S. housing market increased 25 percent. Earnings per share of $ 2.65 were better than the 63 2.63 that analysts predicted. The stock fell more than 2.5 percent.
After quarterly figures were better than expected, the department store chain Macis won about 4.4 percent. The adjusted profit per share was 80 0.80 higher than the market expected 11 0.11. Analysts estimate $ 6.5 billion in revenue and $ 8.3 billion. The outlook for the current financial year was reasonable in line with analyst expectations.
Snapdragon was up 11.0 percent after executives predicted 50 percent revenue growth over several years.
Wells Fargo sells its asset management business to GTCR and Revens Capital for $ 2.1 billion. The deal is expected to close in the second half of the year. The stock fell 0.4 percent.
On Tuesday, Nicola unveiled details of its plan for hydrogen-powered trucks with a range of 500 to 900 miles. The stock lost more than 5.0 percent.
ABM Financial News; [email protected]; Redactie: +31 (0) 20 26 28 999.
