After a slow start to trading, the leading US index, the Dow Jones Industrial, rose again on Tuesday. Yields fell and observers expressed hope that the US Federal Reserve could raise interest rates less than previously feared.
The leading US index, the Dow Jones Industrial, dynamically continued its recent recovery on Tuesday. Yields fell noticeably on the bond market, and observers expressed hope that the US Federal Reserve could raise interest rates less than previously feared. At the closing bell, the Dow was up 1.07 percent to 31,836.74 points. On Friday and Monday it had already increased by almost four percent and had climbed to its highest level since mid-September.
In addition, the quarterly reports of large US corporations such as Coca-Cola and General Motors were well received by investors. Other major selection indices, such as the market-wide S., fared even better than the Dow
On the US bond market, yields on ten-year US paper fell significantly. “Equities are rising while interest rates are falling,” wrote Oanda analyst Edward Moya. In view of the recent weak economic data, the US Federal Reserve could slow down the pace of interest rate hikes. At the same time, the quarterly reports from UPS and General Motors did not thwart the generally optimistic prospects for companies in the USA, according to the market expert.
However, it should only get really exciting in the coming days, when tech giants like Amazon, Apple and Intel will let you look at the books. That evening, after the stock market closed, the software manufacturer Microsoft, the Google mother company Alphabet and the chip manufacturer Texas Instruments presented their results.
In the case of the individual values with published quarterly figures, investors accessed the shares of Coca-Cola. The beverage group surprised positively with its results for the past quarter and raised its outlook for the financial year. The course rose by 2.4 percent.
General Motors shares were also in demand, gaining 3.6 percent. The automaker had made strides in addressing its supply chain woes over the summer, significantly increasing sales and profits. After initial surcharges of more than four percent, the shares of the logistics group UPS closed 0.3 percent lower. An analyst pointed to weak profitability in the international freight business.
The shares of the document manager Xerox got under the wheels, they collapsed by up to a quarter and slid to their lowest level in more than 13 years. Most recently, the loss was 14 percent. Earnings in the third quarter were less than half what the market had been expecting. In bond trading, the futures contract for ten-year Treasuries (T-Note Future) rose by 0.84 percent to 110.66 points. In contrast, the yield on ten-year government bonds fell to 4.09 percent.
In late US FX trading, the euro was significantly higher at $0.9966. The European Central Bank (ECB) had previously set the reference rate at $0.9861 (Monday: $0.9851). The dollar had thus cost 1.0141 (1.0151) euros.
