The shares were mixed on Wednesday, as investors are still worried about the global economy. Rising covid-19 cases around the world increase sales for many companies.
At dinner time
Dow Jones industrial average
rose 0.3% and
was a little changed. The S&P 500 is still down by almost 2% from the highest ever, which hit on 2 September. The 10-year government interest rate rose slightly to 1.31%.
Industrial production in the United States increased by 0.4% month-on-month in August, in line with estimates. Production rose 5.9% compared with the previous year.
“Stronger demand for durable goods indicates a further increase in production after supply problems have been resolved by next year,” wrote Andrew Hollenhorst, Citigroup economist.
Abroad, Hong Kong
Hang Seng Index
fell 1.8% as Asian investors focused on a sharp decline in Chinese retail. The consensus expectation was that retail sales in August would increase by 7% from year to year, but the reading was only 2.5%. Industrial production rose 5.3%, below expectations of 5.8%.
“No tolerance for Covid proliferation and consumer reaction was clearly evident in China’s retail sales figures for August,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group.
decreased by 0.8%, focusing on UK inflation, which rose to 3.2% in August in the biggest jump ever.
Analysts have noted that investors’ mood is to a greater extent mixed as concerns continue to focus on whether a market correction will come.
“Yesterday, the S&P 500 closed -0.32% from its 50-day moving average, and the index has only closed below the rear average on one occasion since March 8 (back on June 18)”, stated Jim Reid, strategist at Deutsche Bank . “Overall, we have not seen a correction yet, as many expect, but we have seen a stop.”
On Monday, Reid and his team published a monthly survey of more than 550 global financial staff showing that 58% expect a stock correction of between 5% and 10% before the end of the year. Another 10% saw a market correction of more than 10% going forward.
Here are 13 shares going on Wednesday:
Gambling stocks exposed to Macau – the world’s largest gambling center – have plummeted as Chinese regulators turned their attention to the sector.
(ticker: WYNN) fell 7.3%. Shares in Las Vegas Sands (LVS) fell 4%.
(9984) Japan declined by 6% in Hong Kong as concerns continued over control of the Chinese technology sector, including
(BABA) —which Softbank is heavily exposed to.
Cyber security specialist
(DARK.UK) increased by 13.6% in London after publishing positive quarterly results – the first since it was published. The company raised forecasts for both revenue growth and profit margins next year.
The luxury goods sector is still under pressure for another day amid concerns over the spread of Covid-19 in the Asia industry’s most critical market.
(YUMC) shares fell 6.7% after the company said operating profit for the third quarter could fall by 50% to 60% year-on-year, as Covid-19 outbreaks in China hit sales.
(RAIN) share increased 0.9% after the company said it sells another 1.4 million doses of its Covid-19 monoclonal antibody treatment to the US Government.
(SAGE) increased by 3.9% after The Food and Drug Administration gave the company a quick tip for its treatment of Huntington’s disease.
The (MSFT) share gained 0.9% after news that the company is raising its dividend.
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