The leading index was helped by the fact that star investor Warren Buffett switched a little bit from Apple shares to standard stocks. Conversely, this dampened investor interest in technology stocks. The Nasdaq 100 selection index, which was shaped by these, fell 0.54 percent to 13,699.71 points. The market-wide S&P 500 closed 0.03 percent lower at 3931.33 meters. In contrast to the Dow, both indices were unable to continue their record rally.
Fear of inflation and the resulting rise in capital market rates remained a central topic on Wednesday. With the price expectations, the yields on US bonds have recently risen, which tends to make them more attractive again compared to stocks. According to traders, it was a good thing for stocks that the minutes of the Fed’s meeting did not contain any indication of an imminent change in lax monetary policy.
Two new stocks that investor legend Warren Buffett selected through his Berkshire Hathaway investment vehicle are Chevron and Verizon. Driven by this honor, they advanced by three percent in the case of the oil company and by as much as 5.2 percent in the case of the telecommunications provider. They were both at the top of the Dow.
Instead, Berkshire has reduced its exposure to Apple. As a result, the papers of the iPhone manufacturer lost 1.8 percent as the bottom of the index and thus indicated the negative direction in the tech industry. The sub-index for IT companies fell negatively in the market-wide S&P 500 with a discount of more than one percent.
Wells Fargo was the subject of conversation with a 5.2 percent jump in price. In the market it was said that the financial institution was making progress in talks with the US Federal Reserve about imposed restrictions. The penalty imposed for bogus accounts with a capped balance sheet total dates back to 2017.
Otherwise, quarterly figures and outlooks for some companies from the second row received attention. The car rental company Avis Budget surprised positively with its quarterly sales, but the shares fell 6.3 percent. According to stockbrokers, this was due to the fact that the company does not trust itself to be able to forecast the year in the corona crisis.
The insurer AIG reported a declining adjusted surplus in the past quarter, which started the shares in the red. But investors then took it, they ultimately made it up with 2.7 percent. It was also announced that AIG had received inquiries from interested parties to participate in the life and retirement insurance business.
In the generally weaker technology sector, there were also positive sector exceptions such as the 1.7 percent higher paper from Agilent. The company specializing in measurement technology impressed with a strong outlook. Bank of America reacted promptly and now recommends buying the stock.
The euro temporarily fell towards the US $ 1.20 mark. Most recently, however, the common currency cost 1.2042 dollars again. The European Central Bank (ECB) set the reference rate at 1.2060 (Tuesday: 1.2143) dollars. The dollar cost 0.8292 (0.8235) euros.
The prices of US Treasuries stabilized after their recent slide, which was accompanied by rising yields. The futures contract for ten-year Treasuries (T-Note-Future) recently rose 0.14 percent to 135.84 points. Their return was now 1.29 percent./tih/he
— By Timo Hausdorf, dpa-AFX —