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Sunday, July 25, 2021

US Equity markets ended controversially

American stock indices did not show a single dynamics at the end of trading on Wednesday, while the Dow Jones index updated a record high.

The Dow Jones Industrial Average rose by 61.97 points (0.2%) and amounted to 31,437.8 points.

Standard & Poor’s 500 dropped by 1.25 points (0.03%) – to 3909.88 points.

The Nasdaq Composite lost 35.16 points (0.25%) to 13972.53 points. Shares of Coca-Cola Co. fell by 0.2%.

The world’s largest soft drink maker recorded a decline in net income in the 4th quarter of 2020, but the adjusted figure exceeded market expectations, prompting a rise in share prices.

Twitter Inc. jumped in price by 13.2%.

The American company, which owns the microblogging network of the same name, increased its net profit in the 4th quarter of 2020 and for the second time in its history received quarterly revenue above $ 1 billion.

Stock quote Mattel Inc. fell 2.1% despite the company’s financial results.

The toy maker posted a net profit of $ 130.5 million in the fourth quarter, compared to breaking even a year earlier.

Adjusted earnings of the company were $ 0.40 per share versus $ 0.23 per share expected by analysts. Mattel’s revenue grew 10% to $ 1.626 billion.

Analysts predicted the figure at the level of $ 1.58 billion. Shares of Yelp Inc. fell 4.5%, although the online reviews platform posted a net profit of $ 21.1 million in Q4 on a forecast breakeven.

The company’s revenue grew by 15% and exceeded the forecast.

Cisco Systems Inc. share price decreased by 2.6%. The US networking equipment maker posted stronger-than-expected results for its fiscal second quarter, but its revenue in some segments fell short of forecasts.

Yesterday investors were evaluating statistics, corporate reporting, as well as the speech of the Chairman of the US Federal Reserve System (FRS) Jerome Powell at the conference of the Economic Club of New York.

Consumer prices (CPI) in the United States in January rose by 1.4% compared with the same month last year, according to the country’s Ministry of Labor.

A similar growth rate was recorded in December. Analysts were forecasting an average increase of 1.5%, Trading Economics reported.

The US budget deficit in January was $ 163 billion, compared with $ 32.6 billion a year earlier, the country’s Finance Ministry said. Analysts had expected the figure to be $ 150 billion.

The Fed chief said Wednesday that he and his colleagues are focused on bringing jobs back to Americans. At the same time, he stressed that he is not yet worried about the prospects for a jump in inflation.

More From Market:

“Inflation has been much lower and more stable over the past three decades than before,” Powell quotes MarketWatch. Investors also focus on the prospects for a new massive package of measures to support the US economy, slowing the spread of COVID-19 and continuing vaccinations against the disease.

Meanwhile, the US Senate on Tuesday voted again to recognize the impeachment process of ex-President Donald Trump as constitutional.

The process is not expected to affect the markets as it does not interfere with the incentive acceptance procedure, MarketWatch writes.

Democrats have taken steps that could allow them to pass a $ 1.9 trillion stimulus package without Republican support. However, the size of the package may be reduced due to the resistance of some Democrats.

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