Wall Street experienced an unstable day on Wednesday with mixed results. The Dow Jones advanced by 0.13% or 44.44 points, to 34,933.23. Meanwhile, the selective S&P 500 gained 0.12% or 5.09 points, to 4,374.30. The Nasdaq composite index slipped by 0.22% or 32.70 points, to 14,644.95.
The rally in technology didn’t help Nasdaq since small company stocks, banks, and energy companies lingered on the broader market’s rise.
Before the trading session, Bank of America, Citigroup, and Wells Fargo published their quarterly results. The three of the banks multiplied their earnings in the 1st half of this year. However, only Wells Fargo posted an advance in the S&P 500, adding 4%. At the beginning of the session, Citigroup experienced a surge; however, it gave up gains later and declined by 0.3%. Bank of America shed 2.5% after it reported solid profits but weak revenue.
Airlines had a positive day after showing signs of recovery. American airlines added 3%.
Among the 30 stocks of Dow Jones, Apple was the biggest winner adding 2.41%. Coca-Cola followed it with a rise of 2.25%. Honeywell added 1.65%. At the same time, Chevron lost 1,88%, Caterpillar yielded 1.65%, and Boeing declined by 1.64%.
Investors concentrating on profits
By sector, essential goods posted the most significant profit rising by 0.92%. Real estate followed it, increasing by 0.89%. Meanwhile, public services gained 0.84%. As for the losses, the energy sector slipped by 2.94%, and the financial sector shed 0.49%.
The Fed chairman Jerome Powell stated that inflation would remain high in the coming months. Powell further mentioned that the country’s economy is far from the central bank’s objective to propose a change in monetary policy. According to Sam Stovall, a chief investment strategist at CFRA, investors are still focusing on earnings after the statements of the Fed’s chairman.
Nikkei tumbled by 1.15%, as the Covid-19 outbreak dampened it
Nikkei, the main index of the Tokyo Stock Exchange, dropped by 1.15% or 329.40 points, to 28,608.49. The Topix, including companies with the highest capitalization, lost 1.20% or 23.55 points, to stand at 1,939.61.
The country registered more than a thousand infections in a day on Wednesday. The presence of new virus variants is a particular concern in Tokyo with the Olympics barely a week away.
All Sectors posted losses, except for metal and iron. The mining sector, consumer credit, and land transportation registered the most considerable losses.
JFE Holdings was the most significant winner of the day, rising by 1.74% or 22.0 points to 1284.0. Kobe Steel, Ltd. added 1.57% or 11.0 points to 710.0. Meanwhile, Konami Corp. advanced by 0.96% or 60.0 points to 6290.0.
As for the losers, Nikon Corp. dropped by 6.22% or 68.0 points to 1026.0. Kyowa Hakko Kirin Co., Ltd. decreased by 4.08% or 160.0 points to end at 3760.0, and Kawasaki Heavy Industries, Ltd. slipped by 3.87% or 91.0 points to 2261.0.
Moreover, Lasertec brought together the most significant trading volume of the session and surged by 0.35%.
Tech and telecommunications giant Softbank posted a 1.20% decline. At the same time, electronics and automotive manufacturer Hitachi fell by 3.53%. It was followed by Fast Retailing, the parent of fashion chain Uniqlo, yielding 1.10%.
Nintendo tumbled by 0.23%, and automotive manufacturer Toyota lost 0.37%.
Trading volumes amounted to 2.11 trillion yen.
Kospi surged after the Fed’s comments
Kospi, the main index of the Seoul stock exchange, succeeded in rising after the president of the Federal Reserve assured that the central bank is not going to change the monetary policy any time soon. The Bank of Korea also froze its interest rate at a record low of 0.5%. On the other hand, China’s consumer spending registered a balanced recovery and fueled optimism for the Korean economy.
Kospi advanced by 0.66% or 21.41 points to 3.286,22. Meanwhile, technological Kosdaq increased by 0.89%, 9.33 points to 1.054,31.
Samsung Electronics, a stock with the highest capitalization on Kospi, increased by 1.38% to 80,600. Besides, SK Hynix closed unchanged at 123,500.
Navar, the principal internet portal operator in the nation, gained 1.13% to 449,000. Kakao, a South Korean messaging application, pulled back by 1,54 %.
In the biopharmaceutical sector, Samsung Biologics hiked by 1.16 to 874,000. Leading chemical firm LG Chem dropped by 3.08% to 818,000.
Top automaker Hyundai Motor closed with an advance of 0.65% to 231,500.
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