Standard stocks are gaining more than technology stocks on the US stock market. Domestic economic data could influence the Fed’s interest rate decision. US retail sales rise, initial jobless claims rise less than expected.
NEW YORK (dpa-AFX) – On the US stock market, standard stocks rose slightly more significantly than technology stocks in early trading on Thursday. At the same time, the domestic economic data was mostly strong, which could have an impact on the US Federal Reserve’s interest rate decision next week.
In early trading, the Dow Jones Industrial rose by 0.51 percent to 34,752.84 points after weakening again the previous day. The market-wide S&P 500 gained 0.48 percent to 4,489.09 points. The technology-heavy Nasdaq 100, which had closed moderately higher the day before, now rose by 0.39 percent to 15,408.40 points.
US retail sales rose for the fifth consecutive month in August and were also stronger than expected. In addition, weekly initial jobless claims, which had previously declined four straight times, did not rise as much as expected.
Company news was rather sparse on Thursday. Investors are paying particular attention to the IPO of chip designer Arm, whose technology is found in practically all smartphones. The Japanese conglomerate Softbank, the owner, had set the issue price for the papers at $51 the day before. It is therefore at the upper end of the targeted price range, resulting in a valuation of more than $54 billion. After the initial listing on the Nasdaq tech exchange, Softbank wants to continue to hold a stake of around 90 percent.
According to information from the financial service Bloomberg, the Japanese conglomerate, which bought Arm for $32 billion in 2016 and took it off the stock exchange, had originally sought a total valuation of $60 to 70 billion. A sale to the chip company Nvidia failed last year due to concerns from competition regulators and Arm customers.
“If the hype surrounding artificial intelligence and the demand for the securities of competitor Nvidia are an indication, only those who received the shares at the issue price can consider themselves lucky,” wrote Jürgen Molnar from broker RoboMarkets. “The first price is likely to be significantly higher, anything else would be a huge surprise.”
The shares of the information technology company HP Inc, which have been under greater pressure since the beginning of September, temporarily fell to their lowest level since January. Most recently they fell by 2.6 percent. The investment company Berkshire Hathaway, owned by well-known investor Warren Buffett, announced the sale of around 5.5 million shares.
The shares of AMC Entertainment, on the other hand, rose by 3.6 percent. The severely ailing cinema operator obtained fresh capital by issuing new shares.
Only after the stock market closes will the software manufacturer Adobe and the construction company Lennar come into focus with their figures for the past quarter. Currently the Adobe papers are going down by 1.0 percent and Lennar is going up by 1.0 percent./ck/jha/
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