NEW YORK (Dow Jones) — Wall Street closed at a discount on Tuesday after a long holiday weekend. After the recent profit streak, investors are now more cautious, it said.
The Dow Jones index closed 0.7 percent lower at 34,054 points. The S&P 500 was down 0.5 percent. The Nasdaq Composite was down 0.2 percent. There were a total of 1,024 (Friday: 1,141) price winners and 1,968 (1,806) losers. 77 (105) titles closed unchanged.
Investors’ eyes are already on Wednesday’s semi-annual congressional hearing by US Federal Reserve Chairman Jerome Powell. “Powell’s comments could help shape how the market — and particularly the technology sector that has led this year’s rally — reacts to Fed policy in the near future,” said Morgan Stanley analyst Chris Larkin.
Sentiment was also somewhat clouded by the absence of an economic stimulus program in China to boost the weakening economy there. According to market participants, concerns about a global economic downturn are increasing.
On the economic side, only housing starts and permits for May were published. The latter surprised positively with an increase of 5.2 percent compared to the previous month, analysts had only expected an increase of 0.3 percent. Housing starts have even jumped by 21.7 percent, where a slight minus had been expected. “The bottoming out in the US housing market is accelerating,” said one market participant.
Dollar stable – oil prices ease slightly
The dollar showed little change. The greenback has clearly lost upward momentum after the US Federal Reserve did not hold any interest rates last week for the first time in more than a year rate hike made, as noted by MUFG Bank. “The slower pace of rate hikes underscores that the Fed is becoming more cautious about the need for further rate hikes and wants more time to assess the incoming data,” said currency analyst Lee Hardman.
Oil prices eased somewhat. The listing for the WTI grades fell by 1.2 percent. The prices were weighed down by demand concerns after Beijing’s expected support measures for the country’s flagging economy have not materialized so far.
Quotations on the bond market rose somewhat. The yield on ten-year paper fell accordingly by 5.0 basis points to 3.72 percent. Yield curves are already in line with the new hawkish message from central banks, so any rise in yields is more likely to come from economic data, ING noted.
Paypal and Tesla are growing
Paypal shares gained 3.7 percent. The payment service provider wants to pass on the expected proceeds from a deal with KKR to its shareholders. As the company announced, it is selling practically all of its receivables from the “buy now, pay later” business in Europe to the financial investor in a multi-year agreement with KKR. PayPal expects immediate proceeds of around $1.8 billion, which will go into share buybacks, among other things.
For Intel, the way is clear for the construction of the announced plant in Magdeburg. As the US chip company announced, it has signed a revised declaration of intent with the federal government. The federal government will now provide 9.9 billion euros in state subsidies instead of the originally planned 6.9 billion euros, as Dow Jones Newswires learned from government circles. However, the share was unable to escape the weak market environment and fell by 3.8 percent.
Tesla stock rose 5.3 percent. After Ford (-1.4%) and GM (-1.7%), the electric carmanufacturer Rivian decided to adopt Tesla’s charging plugs and technology. Rivian’s titles then gained 5.5 percent.
Fedex shares fell 0.8 percent. The logistics group will announce results for the fourth business quarter after the closing bell.
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INDEX last +/-% absolute +/-% YTD
DJIA 34,053.87 -0.7% -245.25 +2.7%
S&P 500 4,388.80 -0.5% -20.79 +14.3%
Nasdaq Comp. 13,667.29 -0.2% -22.28 +30.6%
Nasdaq-100 15,070.15 -0.1% -13.77 +37.8%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.67 -4.6 4.72 25.0
5 years 3.95 -3.7 3.98 -5.4
7 years 3.84-4.9 3.88-13.5
10 years 3.72 -5.0 3.77 -16.3
30 years 3.81 -4.4 3.86 -15.8
FOREX last +/- % Tue, 8:34 AM Mon, 5:30 PM % YTD
EUR/USD 1.0913 -0.1% 1.0928 1.0927 +2.0%
EUR/JPY 154.34 -0.4% 155.22 155.00 +10.0%
EUR/CHF 0.9801 +0.1% 0.9795 0.9789 -1.0%
EUR/GBP 0.8550 +0.2% 0.8550 0.8539 -3.4%
USD/JPY 141.44 -0.4% 142.04 141.83 +7.9%
GBP/USD 1.2763 -0.3% 1.2781 1.2797 +5.5%
USD/CNH (Offshore) 7.1815 +0.2% 7.1731 7.1643 +3.7%
Bitcoin
BTC/USD 28,051.72 +4.9% 26,814.88 26,401.12 +69.0%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 70.94 71.78 -1.2% -0.84 -11.1%
Brent/ICE 76.01 76.09 -0.1% -0.08 -9.2%
GAS VT Settlem. +/- EUR
Dutch TTF 37.25 34.90 +6.7% +2.35 -56.2%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,936.42 1,947.64 -0.6% -11.22 +6.2%
Silver (Spot) 23.16 23.93 -3.2% -0.76 -3.4%
Platinum (Spot) 964.85 978.35 -1.4% -13.50 -9.7%
Copper Future 3.88 3.89 -0.2% -0.01 +1.7%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
June 20, 2023 16:12 ET (20:12 GMT)
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