Wall Street ends with mixed blessings, profit-taking and political trade-offs-Zimo News


The New York Stock Exchange closed mixed on Wednesday, affected by profit-taking, but also worried that Congress’ negotiations on two large-scale budget plans may fail.

The Dow Jones index closed down 0.74% to 35,490.69 points, while the broader S&P 500 index fell 0.51% to 4,551.68 points, while the Nasdaq index closed at 15,235 points and 83 points in equilibrium.

All three indexes opened in green, but as the S&P 500 index hovered near equilibrium before entering the negative zone, the Dow Jones index quickly fell back.

For Christopher Low, chief economist of financial consulting firm FHN Financial, the decline was due to profit settlement, which came after the Dow Jones Index set a record for three consecutive years.

“We may have reached some sales thresholds,” the analyst said.

The decline in the Wall Street flagship index was also due to the poor performance of Visa (-6.92%) and Boeing (-1.53%). One was due to overly cautious forecasts and the other was due to new quarterly losses.

The weight of these two values ​​actually adds up to more than 8% of the Dow Jones index.

At the end of the meeting, investors turned their attention to Congress for the first time in a few days, and the Democrats continued to negotiate the content and funding of two budget plans that could total more than $3 trillion in Congress.

For some time, people have been enthusiastic about this major boost to the economy, and then worried about its possible contribution to the current surge in inflation, and the market is now looking at possible failures in a bleak light.

“Currently, income has not kept up with the pace of inflation, so I think if there are no new stimulus measures, people will worry about a recession,” Christopher Low said.

On the contrary, bond interest rates contract, because failure will be detrimental to the upcoming interest rate hike by the U.S. Central Bank (Fed). The 10-year US government bond interest rate was 1.53%, lower than Tuesday’s 1.61%.

Microsoft hit a record high, closing up 4.21%, with outstanding performance, with net income of US$20.5 billion, up 48%.

The group’s growth engine cloud business (remote computing) revenue increased by 31%.

Alphabet (+ 4.84%) has the same trajectory, setting a record, with a market value of close to US$200 billion.

Like Microsoft, it also enjoyed amazing performance (up 2.47% to $2,862.31), with sales increasing 41% to $65 billion.

Equally dynamic is that in a completely different industry, Coca-Cola (+1.93%) raised its 2021 financial target after its first growth in the previous quarter.

Due to better-than-expected performance, McDonald’s stood out (+2.67%), and its growth accelerated in all major markets in the United States and internationally. The fast-food chain’s quarterly performance was strong, partly due to rising prices and an increase in average order volume.

Twitter fell (-10.78%) after recording a significant quarterly loss, which is related to the compensation of shareholders who accused executives of defrauding investors in 2015.

The US laboratory Novavax used (+4.83%) the application for marketing authorization for the Covid-19 vaccine submitted in the UK.

General Motors was the victim of the decline in turnover and profits (-5.42%). Part of the disappointment was that the shortage of electronic chips affected the entire industry.

After announcing a higher-than-expected quarterly turnover, Spotify soared (+ 8.30%).

The mainstream brokerage platform Robinhood plummeted (-10.44%) the next day after announcing disappointing results, characterized by a sharp slowdown in cryptocurrency trading, which is the company’s main source of income.

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