Stocks – Dow Jones rises to record economy

At the end of the stock market week, investors stocked up on shares. Of the Dax increased by half a percent to 15,543 points on Friday. Investors were particularly encouraged by the fact that the real estate group China Evergrande’s insolvency had been averted for the time being. Neil Wilson, chief analyst at the online broker Markets.com. also stressed that corporate earnings growth has developed better than expected. Among the individual stocks in the Dax, auto stocks were way ahead again after the recent losses. Daimler, BMW, Volkswagen and the shares of Porsche Holding were among the favorites with profits of up to 2.2 percent. The Continental share increased at times by 4.5 percent despite a lower profit forecast. The business figures of L’Oreal were also a boost to the mood. The quarterly sales of eight billion euros are well above market expectations, praised Martin Deboo from the Jefferies investment bank. In addition, the cosmetics group was optimistic about the future outlook. L’Oreal shares rose at the top by seven percent. In the M-Dax, Beiersdorf’s stocks benefited from this with a plus of 1.2 percent.

The bottom line was encouraging company results supported the prices on Wall Street. Statements by the US Federal Reserve Chairman Jerome Powell about the impending throttling of Fed security purchases, however, dampened the buying mood somewhat. Of the Dow Jones meanwhile rose to a new record of 35,765 points. The S&P also reached a record high. Powell believes the time has come for a controlled rollback in Fed purchases. However, it is still too early to raise interest rates. The sentiment was also hit by Intel’s warning that profit margins were below expectations. The chip manufacturer’s shares plummeted by almost twelve percent. Snap’s stocks plummeted 26 percent. The Snapchat operator had presented a disappointing quarterly result and warned of further losses in advertising income. In the wake of Snap, the shares of Twitter, Facebook and Google parent Alphabet fell by up to five percent. American Express was a positive surprise. The credit card provider increased sales and profits surprisingly strongly in the quarter. The share then rose by up to 5.5 percent to a record high