Strong company balance sheets help: Wall Street continues to chase course records


Strong company balance sheets help
Wall Street continues to chase course records

The additional trillion dollar Corona aid continues to generate optimism in the USA. The eagerly awaited speech by Federal Reserve Chairman Jerome Powell hardly played a role in the market.

The prospect of a breath of fresh air for the US economy has once again given Wall Street course records. The Dow Jones gained 0.2 percent to 31,437.80 points. The technology-heavy one Nasdaq gave in 0.3 percent to 13,972.53 points and the broad one S&P 500 closed barely changed at 3,909.88 points.

The market has grown quite quickly, said Rick Meckler, partner at asset manager Cherry Lane. Profit-taking is not unusual. The basic mood remains good, said investment strategist Michael Hewson from brokerage firm CMC Markets. The confidence that the planned additional trillion-dollar corona aid will be passed and the company’s surprisingly strong balance sheets fueled economic optimism.

Bitcoin 44.791,50

The speech by US Federal Reserve Chairman Jerome Powell hardly played a role in the market. In view of the job misery, this has called for a national effort to overcome the crisis. For a return to full employment more than a “supportive monetary policy” is required, he said in an online presence at the Economic Club of New York. “It needs a social commitment, with the government and the private sector contributing.” The government of President Joe Biden wants to cushion the consequences of the corona pandemic with a $ 1.9 trillion aid package and boost the economy.

Twitter on the rise

Twitter 55,18

One of the favorites on the US stock market was Twitter. The titles rose by more than 13 percent, although the short message service had warned of weaker customer growth. But because the quarterly result is above market expectations and increasing advertising sales are to be expected, investors ignore it, said stock exchange traders. Separately, Twitter announced the purchase of Bitcoin to think along the lines of the electric car manufacturer Tesla. A decision has not yet been made, said Twitter CFO Ned Segal in a TV interview.

The oldest and most important cyber currency fell nearly five percent to $ 45,123, but remained within striking distance of its recent record high of $ 48,214.99. The owners of cannabis stocks were on cloud nine. The stocks of providers like Tilray, Aphria or Cronos recorded price gains of up to 50 percent. A listed fund (ETF) for the industry recorded the highest price jump in its history with a gain of almost 20 percent at times. According to the analysis firm Swaggystocks, Tilray is the company most talked about in the “Wall Street Bets” investor forum on the Internet platform Reddit, which played a central role in the volatility of the US video game retailer GameStop.

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