Wall Street reluctant towards Memorial Day weekend

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(ABM FN-Dow Jones) Wall Street stayed close to home on Friday. The S&P 500 rose 0.2 percent at 2,955 points. The Dow Jones index fell fractionally to 24,465 points, and the Nasdaq gained 0.4 percent on a close to 9,325 points.

On a weekly basis, the Dow, S&P 500, and Nasdaq are well ahead, driven by hopes of a corona vaccine and economic recovery as all 50 U.S. states have eased their lockdown measures.

Friday’s sentiment was driven by growing tensions between the United States and China. These are further fueled by the news that China has adopted a new security law for Hong Kong that further undermines the independence of the administrative region.

“The agenda for Hong Kong’s security bill rightly leads today to uncertainty in the financial markets, as risks of an increase in tensions between the US and China increase, while investors also fear new protests in Hong Kong,” analysts of the Japanese Mizuho Bank in a comment.

In addition, it was announced that China is scrapping its growth target. “Whether it’s a slower recovery from the corona crisis or increased trade tensions, anything that impacts growth in China will also weigh on global growth expectations,” said market strategist Seema Shah of Principal Global Investors.

Macro-economically, it was quiet in the US on Friday. Monday is not trading on Wall Street due to Memorial Day.

The euro / dollar pair was trading at 1.0901 on Friday evening. The oil price slowed down after the recent rally and fell 2.0 percent.

Company news

IBM is going to cut jobs. It is the first round of layoffs under new CEO Arvind Krishna, who wants to put the technology company back on the path to greater growth. Many IBM customers have to limit their investments due to the corona virus and do not sign large software contracts for the time being. The share fell 0.6 percent.

The profit of chip manufacturer Nvidia has risen due to strong growth in computer games and remote working services, now that many people have been glued to their homes recently by the coronavirus pandemic. Earnings rose 39 percent to $ 3.1 billion in the quarter, Nvidia reported Thursday evening. The results were above expectations. The stock closed 2.9 percent higher.

Deere & Co achieved a significantly lower profit and turnover in the past quarter. However, the profit was higher than analysts had predicted. Deere expects net profit between $ 1.6 billion and $ 2.0 billion for the fiscal year. The company previously saw a bandwidth of 2.7 billion to 3.1 billion dollars, but on March 23 of this year the company already released that expectation in response to the corona crisis. The share went down 1.4 percent.

Hewlett Packard recorded a loss in the past quarter and is not giving an outlook due to the uncertainty caused by the corona outbreak. The stock fell 11.5 percent.

Alibaba achieved a considerably higher turnover last quarter, but saw its profit decline due to falling stock prices. For the current financial year, the Chinese internet giant expects a turnover growth of 27 percent. Alibaba shares lost 6.1 percent.

KKR is investing approximately $ 1.5 billion in the Indian telecom and technology company Jio Platforms, for a stake of 2.3 percent. Facebook, Silver Lake, Vista Equity Partners and General Atlantic already preceded the private equity house. The KKR share won 1.1 percent.

Stock market debutant Inari Medical rose nearly 124 percent to $ 42.51 on Friday. The biotech company’s IPO price was $ 19.00 per share.

ABMFNABM Financial News; [email protected]; Editors: +31 (0) 20 26 28 999.

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