NEW YORK (dpa-AFX) – After six consecutive days of losses, investors on the US stock markets were in a buying mood on Tuesday. The Dow Jones Industrial (Dow Jones 30 Industrial) closed up 0.63 percent at 33,926.74 points. The market-wide S&P 500 rose by 1.15 percent to 4378.41 points. The tech-heavy NASDAQ 100 gained 1.75 percent to 14,945.91 points.
Support came from better-than-expected US economic data. According to the market, these had fueled hopes that the US economy could avoid a recession. Incoming orders for durable goods continued to rise surprisingly in May compared to the previous month. In addition, US house prices climbed significantly in April. The number of new homes sold in May also rose unexpectedly sharply. Furthermore, consumer sentiment brightened more than expected in June.
After a profit warning from the pharmacy chain, shares in Walgreens Boots Alliance fell to their lowest level since Walgreens acquired Alliance Boots in late 2014. They were down 9.3 percent at the close of trading, clearly trailing the Dow. With a price discount of more than 23 percent, they are also the weakest Dow value so far this year. The company lowered its earnings target for the current financial year after a disappointing profit development in the third financial quarter.
A bankruptcy filing by the electric truck manufacturer Lordstown Motors caused its shares to plummet by around 17 percent. The company also announced a lawsuit against the Taiwanese contract manufacturer Foxconn because of allegedly missing agreed investments.
In contrast, the papers of Delta Air Lines increased by 6.8 percent. The airline said at an investor event it expects this year’s profit to be at the high end of its previous target range. The company confirmed its outlook for the coming year.
Shareholders of American Equity (American Equity Investment Life) were euphoric about a takeover bid. Shares in the insurer jumped a good 17 percent to $52.86 after asset manager Brookfield Asset Management’s reinsurance arm, Brookfield Reinsurance, made a $55 per share offer had put on the table. The Brookfield shares gained 3.7 percent.
The euro defended its gains from European business in US trading. The common currency was last traded at $1.0962. The European Central Bank (ECB) had set the reference rate at 1.0951 (Monday: 1.0918) US dollars. The dollar had cost 0.9132 (0.9159) euros.
US Treasury bond prices fell. The futures contract for ten-year bonds (T-Note Future) recently fell by 0.32 percent to 112.88 points. The yield on ten-year Treasuries, on the other hand, rose to 3.77 percent./edh/he