The Dow Jones Industrial closed with minus 0.80 percent to 27,463.19 points. On Monday, after an already weak previous week on the stock market, the Wall Street Index initially fell below the 28,000 mark and then at times to its lowest level since the end of September. But on Tuesday it wasn’t that steep downhill.
The market-wide S&P 500 fluctuated between moderate gains and losses and ultimately fell by 0.30 percent to 3390.68 points. The technology-heavy selection index Nasdaq 100 rose 0.82 percent to 11,598.95 points.
On the economic side, it was clear that house prices rose significantly more than expected in August and that US companies continued to invest in larger purchases such as machines despite the tense corona situation. The fifth increase in a row was reported in September after orders for durable goods collapsed in the spring due to corona. However, the data on consumer sentiment in October produced negative results: the consumer mood surprisingly clouded over.
With the upcoming presidential election in view, analyst Ricardo Evangelista from the broker ActivTraders expects fewer fluctuations on the stock exchanges for the time being until a result about the future occupation in the White House becomes apparent. At the same time, he attaches even greater weight than usual to the elections in view of the pandemic, the China conflict and increasing polarization. The effects are also felt in several market-sensitive areas, including the dispute over a new stimulus package.
On the corporate side, the reporting season in particular provided the material for price movements in one direction or the other on Tuesday. Among the pharmaceutical stocks, the shares of Merck & Co were initially among the winners. Ultimately, they lost 1.1 percent. Pfizer fell 1.3 percent and Eli Lilly fell almost 7 percent.
At Merck, investors looked primarily at the increased profit forecast, while at Eli Lilly the disappointing earnings development in the third quarter was in view. Industry giant Pfizer’s quarterly balance sheet turned out as expected, with investors primarily focused on the Covid-19 vaccine. At the same time, Pfizer narrowed its annual targets slightly, with the downside of the adjusted earnings margin per share and also that for sales being capped slightly.
Caterpillar was one of the weakest stocks in the Dow with minus 3.2 percent. The corona crisis again caused the construction machinery manufacturer to suffer heavy losses in the third quarter. 3M shares lost 3.1 percent. The conglomerate delivered solid quarterly figures, which, according to RBC, were not particularly surprising in operational terms.
Raytheon Technologies lost 7.0 percent in the S&P 500. According to Credit Suisse, the defense, electronics and technology group presented a set of figures that was slightly better than expected, even if the outlook for the aviation sector remained suspended. The shares of the motorcycle manufacturer Harley-Davidson were also worth a look, which shot up by around 22 percent after a profit jump in the third quarter and thus made up for their corona-related price losses since the end of February.
Aside from the company reports, AMD and Xilinx also made headlines. The chip developer Advanced Micro Devices (AMD) wants to take over the competitor Xilinx. The price per Xilinx paper is said to be $ 143. While Xilinx, the top value in the Nasdaq 100 index, rose 8.6 percent to $ 124.35, AMD, one of the worst values in the index, fell by 4.1 percent. Intel lost 2.3 percent, with the Xilinx takeover it could become tighter for the world‘s largest chip manufacturer in the market for PC processors.
Tiffany went up 4.9 percent. The French luxury goods group LVMH is negotiating according to the “Financial Times” with the US jewelry chain about a reduction in the takeover price. The companies wanted to avoid a legal dispute, reported the business newspaper, citing insiders.
In the small caps area, the shares of the biopharmaceutical company Catabasis Pharmaceuticals stood out with a price drop of almost 71 percent. The pre-clinical test results of an important drug study on the active ingredient edasalonexent against the hereditary muscular disease Duchenne in childhood failed to meet expectations.
The euro fell slightly in US trading and closed at $ 1.1810 on Wall Street. The European Central Bank set the reference rate at 1.1832 (Monday: 1.1819) dollars. The dollar cost 0.8452 (0.8461) euros. On the US bond market, the futures contract for ten-year Treasuries (T-Note Future) rose 0.18 percent to 138.87 points. The yield on the ten-year federal bond fell to 0.774 percent./ck/he
— By Claudia Müller, dpa-AFX —