Step Back on Wall Street After Records for Dow and S&P 500

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The stock exchanges in New York opened a little lower on Monday, after the leading Dow Jones index and the broad S&P 500 reached new record levels on Friday.

 

Investors on Wall Street are particularly anticipating the US quarterly earnings season starting this week, with results from central banks Goldman Sachs, JPMorgan Chase and Wells Fargo on Wednesday.

Citigroup, Bank of America and Morgan Stanley will also open their first quarter books this week. There will also be important figures on inflation and retail sales in the United States. The Federal Reserve publishes its Beige Book, which provides insight into the state of the world’s largest economy. Fed Chairman Jerome Powell said that US economic growth is expected to pick up in the coming months this weekend.

Shortly after opening, the Dow recorded a minus of 0.1 percent at 33,775 points. The S&P 500 also fell 0.1 percent to 4123 points, and technology gauge Nasdaq dropped 0.4 percent to 13,849 points.

The companies are paying attention to the taxi app Uber Technologies. Uber’s meal delivery business has never delivered as many meals in a month worldwide as it did in March. Uber Eats saw demand for meals more than double last month. The business also went well with the taxi service. The Uber share won more than 3 percent.

Nuance Communications, which is active with artificial intelligence (AI) and speech technology, made a price jump of about 18 percent. The company is acquired by software group Microsoft (minus 0.2 percent) in a deal worth $ 16 billion. It is the largest acquisition by Microsoft in years.

The electric car maker Tesla is also in the spotlight with a plus of almost 2 percent. Investment bank Canaccord Genuity came up with a piece of buy advice for Tesla and a strong price target increase. Canaccord believes Tesla will do good business with its home battery technology and that the battery shortage for its cars will decrease next year.

The Chinese web store group Alibaba, which is also listed in New York, won 6.5 percent. China last weekend imposed a record fine of 2.3 billion euros on the company of tech billionaire Jack Ma for monopoly practices. Investors have already anticipated that Alibaba would be fined and are relieved that the matter is now over.

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