The leading index Dow Jones Industrial expanded its initial losses and lost two and a half hours after the start of trading 0.63 percent to 32,214.80 points. The S&P 500, which is broad in the market, fared similarly with a price minus of 0.57 percent to 3866.86 meters. The technology-heavy Nasdaq 100 slipped after intermittent gains by 0.98 percent to 12,673.57 points. In the past two days, prices had only weakened in late trading.
In Dow, Nike was lagging behind with a price minus of almost five and a half percent. After EU sanctions were imposed on China, foreign companies came under fire there. Initially, the Chinese state media sharply criticized Hennes & Mauritz (H&M), then sports brands such as Nike and Adidas were punished by a party-affiliated newspaper.
H&M announced last year that it no longer wanted to purchase cotton from the Chinese region of Xinjiang after reports that the Muslim Uyghur minority was doing forced labor there. At that time there was still no sharp reaction from China. That has now changed after the EU imposed sanctions on China for the first time in more than three decades on Monday.
Otherwise moving business figures. The pharmacy and drugstore chain Rite Aid reported surprisingly poor quarterly results as the corona-related lockdown measures led to a decline in sales of cold medicines, with stocks falling by over 22 percent.
Shares in the restaurant chain operator Darden, on the other hand, achieved an increase of around three percent thanks to numbers that were better than expected. The adhesives manufacturer HB Fuller convinced with a surprisingly high operating profit target (Ebitda) for the current year – the papers advanced by almost three and a half percent.
Cisco Systems shares rose one and a half percent after Goldman Sachs recommended them to buy. With a restart of the US economy after the corona pandemic, companies should invest more in network technology again, argued the investment bank./gl/he
(AWP)
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