NEW YORK (dpa-AFX) – In view of the recent record hunt on the US stock exchanges, investors initially acted cautiously on Wednesday. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) and the NASDAQ 100, which is predominantly made up of technology stocks, had dragged themselves to further highs in early trading, but overall the movements before Christmas were kept within narrow limits.
The Dow recently gained 0.11 percent to 37,600.66 points. The market-wide S&P 500 gained 0.07 percent to 4,771.79 points. The Nasdaq 100 rose by 0.10 percent to 16,829.46 points.
Support for stocks again came from the bond market, where the yield on ten-year US Treasury securities remained below the widely watched four percent mark. Investors are still betting on significantly falling interest rates in the coming year, and the stock markets will benefit from this. According to the Fedwatch tool from the Chicago Mercantile Exchange, the market expectation of a first interest rate step in March is currently more than three quarters.
At the end of the S&P 500, FedEx shares fell by almost eleven percent. The logistics group disappointed investors with its business development and statements about the coming year. Analyst Jordan Alliger from Goldman Sachs particularly criticized the profitability of the express business.
Expert Brian Ossenbeck from JPMorgan Bank added that Fedex’s statements allowed predominantly negative conclusions to be drawn about its competitor UPS (United Parcel Service). Fedex pointed to weaker demand in the international freight business. UPS shares fell by almost one percent.
After the presentation of business figures, General Mills investors had to cope with a loss of more than two percent. The food manufacturer had disappointed in terms of sales and outlook./la/he