INDEXDJX:DJI, INDEXNASDAQ:IXIC and S&P 500 preparing for another great week. – Idaho Reporter


INDEXDJX:DJI, INDEXNASDAQ:IXIC and S&P 500 preparing for another great week.

Wall Street’s run to 2 month highs this week has been based on the assumption that strong corporate earnings will outlast the recent economic slowdown. But with energy prices on the slippery slope again, some of those bullish bets came off.

On the other side investors who have recently become nervous about the conflict between the United States and China eased somewhat on Friday. While the Dow Jones Industrial Average (INDEXDJX:DJI) had fallen by 1.4 percent during the day and threatened to slide below 25,000 points, at the end of the trade there was only a minus of 0.07 percent to 25,383.11 points. In the face of China’s interference in actually autonomous Hong Kong, US President Donald Trump wants to largely end the advantageous treatment of the metropolis. However, the fear of even more drastic measures by the USA has not materialized for the time being.

Experts on various occasions had not ruled out that the increasing tensions between the two countries could shake their already fragile trade agreement. “Then protectionism would gain the upper hand again in terms of trade policy,” the analysts at Commerzbank had argued in advance of Trump’s speech. At first, however, that does not seem to be the case.

The broad S&P 500 index gained 0.48 percent to 3,044.31 points. The technology-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC)rose by 1.29 percent to 9489.87 points. A resurgence of the US-China trade dispute would likely have affected large parts of the U.S. technology industry.

“Investors’ propensity to take risks remains intact,” said analyst Edward Moya from broker Oanda. President Trump has not threatened China with new punitive tariffs or questioned the trade agreement. The financial markets had reacted positively to this.

For the Dow, it was an enjoyable week on the stock market with a gain of 3.8 percent. The leading index rose by 4.3 percent in May.

Trump meanwhile said Twitter etc. in the middle of the campaign for the White House. The US president wants to limit the freedom of online platforms to act against individual users and content. The trigger was the fact check of a tweet in which Trump claimed that absentee voting increases the risk of counterfeiting.

Shortly afterwards, Twitter provided another tweet from Trump with a warning that the post violated the ban on the glorification of violence on the service. In the wake of the dispute, Twitter stocks had lost more than 7 percent in the past two days and were now down another 2 percent.

Salesforce (NYSE: CRM) shares lost 3.48 percent. The opponent of SAP disappointed investors with reduced forecasts for sales and earnings in the current year. The recession triggered by the corona virus has depressed demand for cloud-based software offerings.

Papers from Dell Technologies rose 8.9 percent to its highest level in three months. The technology group performed significantly better than expected in the first business quarter. Analysts predict that the manufacturer of single-user and mainframe computers could wrest market share from competitors in the Corona crisis.

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