Börse Express – New York stocks: Dow rises to record high ahead of Fed economic report

NEW YORK (dpa-AFX) – Shortly before the publication of the economic assessment of the US Federal Reserve, the US benchmark index Dow rose to another record on Wednesday. At 35,669.69 points, the Dow overcame the previous record high from mid-August. Investors may be betting on good news from the Fed in the so-called Beige Book, it said in the trade. Most recently, the Dow rose 0.43 percent to 35,611 points.

The market-wide S&P 500 increased by 0.22 percent to 4530 points. Even the S&P 500 is not short of another high. For the tech-heavy Nasdaq 100
it went down by 0.40 percent to 15,350 points. The index is thus a little further away from the record high of early September.

Statements by the Fed are currently being very actively followed by investors, as the central bank wants to put the brakes on its monetary policy, which has been loose so far. The experts at Landesbank Helaba assume that the central bankers will point to a decline in economic dynamism, but at the same time notice improvements in the labor market situation and a higher level of inflation. “The expectations that the bond purchase program will be cut in the coming month should remain on balance. However, future interest rate hikes will hardly be given a greater probability,” it said in an outlook on the Beige Book.

On the corporate side, the focus is still on the balance sheet season: shares in the streaming service Netflix
slipped by 2.5 percent. Despite an unexpectedly strong third quarter, some observers found a fly in the ointment and criticized the outlook for the final quarter.

Verizon telecom company shares and the pharmaceutical company Abbott Laboratories were in demand – both companies raised their profit forecasts. Verizon was up 2.3 percent and Abbott Laboratories was up 3 percent.

The business figures of the electric car manufacturer Tesla, which are always followed with great suspense, are only available after the trading hours on, and also the computer builder IBM only opens its books after trading closes.

The shares of the social picture network Pinterest
benefited from speculation about its takeover. The online payment service PayPal is interested, reported the Bloomberg news agency. Pinterest stocks jumped eleven percent while PayPal fell six percent.

Meanwhile, the shares of corona vaccine maker Novavax experienced a price drop of 15 percent. According to a report by the online portal Politico, the company is struggling with production difficulties before the drug is approved. As the portal reported with reference to informed circles, there are problems to meet the high quality standards of the regulatory authority. This could have a particularly negative impact on the international Covax vaccination initiative for poorer countries, which is also relying on extensive deliveries from Novavax, it said./bek/he

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0354 2021-10-20/20:05

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