On Wall Street, the most important stock indices are likely to climb records on Friday as well. However, there are indications that investors could take it easy just before the weekend.
The leading index Dow Jones Industrial the broker IG estimated just under an hour before the stock market launch with 34 098 meters and thus 0.18 percent higher. Thursday had a slew of surprisingly robust economic data as well as strong quarterly figures from health insurer and Dow heavyweight UnitedHealth fueled the record rally.
Meanwhile, the Swiss bank UBS increased the price target for the market-wide index S&P 500 this Friday by the end of the year from 4200 to 4400 points. “With the economy reopening faster in the coming months, we believe the bull market will continue to stand on solid foundations,” wrote investment chief Mark Haefele.
After two rounds of stimulus from the US government and thanks to continued progress in vaccinations against the coronavirus, according to Haefele, there is increasing evidence that economic activity in the US is picking up speed again. In addition, the cost pressure on companies is largely only of a temporary nature and can be offset by sales growth.
This Friday, however, the focus is once again on the quarterly figures of financial institutions. The booming trade in securities as well as strong growth in asset management and investment banking brought the Morgan Stanley financial institution top profit and income figures at the beginning of the year.
Morgan Stanley’s results were positive overall, but they also had one flaw: the default of a single customer and consequent trading losses resulted in the loss of over $ 900 million. The bank did not mention a name, but it was likely to have been the hedge fund Archegos, whose bankruptcy shook the industry and other investment houses such as Credit Suisse or Nomura had burdened. In pre-market US trading, the papers made by Morgan Stanley made up for initial losses and recently traded half a percent higher.
The papers of the financial group PNC Financial
also traded moderately up ahead of the IPO. Here stockbrokers emphasized that earnings per share exceeded market expectations./la/mis
ISIN US2605661048 US6311011026
AXC0254 2021-04-16/15:10
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