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Saturday, July 24, 2021

American stock markets closed with multidirectional changes in indices

Trades on Monday, US stock indices ended with multidirectional changes after approaching the record highs last week.

The Dow Jones Industrial Average dropped 126.15 points (0.36%) to 34630.24 points. Earlier in the session, it exceeded the all-time closing high of 34777.76 points, reached on May 7.

Standard & Poor’s 500 fell 3.37 points (0.08%) to 4226.52 points, but remained close to its record closing level of 4232.6 points, also recorded on May 7.

The Nasdaq Composite rose by 67.23 points (0.49%) and ended trading at 13881.72 points.

On Friday, US stock indices rose on the May labor market statistics. Although the growth in the number of jobs in the country in May was lower than forecast, its pace accelerated significantly compared to April.

The Dow Jones indicator added 0.7% last week, the S&P 500 – 0.6%, the Nasdaq Composite – 0.5%. At the same time, the Dow Jones and S&P 500 ended the week only 0.1% below the record closing levels recorded on May 7, according to MarketWatch.

QTS Realty Trust Inc. jumped 21.2% on media reports that Blackstone Group Inc., the world’s largest alternative investment management company, is buying a US data center operator for about $ 6.7 billion. Blackstone shares are up 1.3% …

Visa Inc. rose 0.5% yesterday thanks to a rating upgrade by Piper Sandler analysts.

Carnival Corp. increased by 1.2%. The world’s largest cruise operator Carnival Corp. confirmed plans to resume cruises for its Carnival Cruise Line, departing from a US port in early July.

Alphabet Inc. added 0.4% in price. American Google, part of Alphabet, will pay a € 220 million fine to settle the claims of the French antitrust regulator (Autorite de la Concurrence), which accused the company of abusing its dominant position in the digital advertising market.

Autodesk Inc. fell in price by 2.1%. An American software developer has made an offer to acquire Altium Ltd. For approximately $ 3.91 billion, Altium, which provides PCB design software, rejected the offer as grossly underestimating the company’s prospects, but welcomed Autodesk’s interest and said it would be willing to discuss a proper valuation.

Traders are awaiting the publication of May data on the dynamics of consumer prices in the United States, which will be released by the Department of Labor on Thursday.

US Treasury Secretary Janet Yellen said in an interview with Bloomberg on Sunday that US President Joe Biden, in her opinion, should seek the implementation of his proposed programs to support the economy totaling $ 4 trillion, even if this would increase inflationary pressures and increase interest rates in the country.

“If interest rates rise slightly, it will be a plus both from the point of view of society and from the point of view of the Federal Reserve System (FRS),” Yellen said.

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American experts differ in their forecasts regarding the future dynamics of inflation in the United States. A number of economists, including Yellen, believe that the rise in inflationary pressures is caused by the effects of the pandemic and is temporary. Others fear that the massive stimulus proposed by Biden will create sustained inflationary pressures over the long term.

According to Yellen, Biden’s programs will require an increase in government spending by about $ 400 billion a year, and this is not enough to trigger a long-term rise in inflation. The consumer price spike that could result from the stimulus program will come to naught next year, she said.

The consensus forecast of experts interviewed by Trading Economics envisages acceleration of inflation in the US in May to 4.7%. In April, consumer prices rose 4.2%, at the fastest rate in 12 years.

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