Equities New York: Indices completely ignore initial gains | 07/18/22

NEW YORK (awp international) – An initial sustained recovery dried up on US stock markets on Monday. Supported by positive company news, including from the investment bank Goldman Sachs, the Dow started trading firmly, but its profits melted away bit by bit. Two hours before the end, he slipped into the red with 0.09 percent.

After a daily high of 31,644 points, which was the highest level since the end of June, the New York leading index was last at 31,258.79 points. The market-wide S&P 500 fell 0.18 percent to 3856.39 points, while the technology-heavy Nasdaq 100 recently fell 0.2 percent to 11,955.74 points.

Before the weekend, thanks to robust economic data, the Dow had ended a five-day losing streak and almost made up for its previous week’s minus. According to experts, the willingness to take risks has improved for a short time without this being related to tangible news. The economic risks remain high and the high inflation must continue to be fought by the central bank.

With Goldman Sachs and Bank of America, two other large US banks presented their quarterly figures, which were well received by Goldman investors: The investment bank’s shares defended a plus of 1.8 percent and were two hours before the end the best Dow values. The bank performed better than expected despite a profit slump.

Against this background, the environment for US bank stocks was generally quite solid. According to the figures, Bank of America was still able to achieve a wafer-thin plus. Investors overlooked the fact that the financial institution’s profit fell just short of expectations. According to UBS expert Erika Najarian, the quarter was therefore better than it appears at first glance.

Boeing remained another clear winner in the Dow, up one percent. The drivers here were orders that were secured at the air show in Farnborough, UK – including for 100 737 Max medium-haul jets from Delta Air Lines. Airlines were also in demand under these circumstances: Delta titles increased by 4.2 percent.

Some oil stocks were generally in demand again. Chevron rose 1.6 percent in the Dow as oil prices picked up again. The stock exchange prices for the energy source rose with the generally improved investor sentiment, it said. In addition, the US dollar lost strength in trading against other major currencies.

In addition, two stocks attracted positive attention in the course of analyst comments. Chesapeake Energy rose 4.4 percent after a buy recommendation from Goldman Sachs. In the study, analyst Umang Choudhary was generally optimistic about natural gas producers. Chesapeake is well diversified and, thanks to cash flow and robust growth, offers attractive prospects for returns.

Expensify jumped 11.6 percent. The software company, which specializes in expense management, was recently recommended for purchase by Bank of America – among other things because of a strong margin perspective and the promising focus on expense management./tih/he

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