November 1, 2020


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Wall Street continues to rise

Wall Street continues to rise

Photo: ANP

The stock exchanges in New York opened higher on Tuesday and are building on the good profits from the previous day. Wall Street sentiment is supported by strong macro data from China, among other things. Additionally, investors’ eyes are on the roof of the US central bank, the Federal Reserve, which begins its two-day policy session on Tuesday.

The Dow Jones Index rose 0.7 percent to 28,192 points in the first few minutes of trading. The broadly based S&P 500 rose 0.9 percent to 3,413 points and the Nasdaq Tech Exchange rose 1.1 percent to 11,185 points.

No changes in US Federal Reserve policy are expected. Investors will therefore be especially curious about Fed Chairman Jerome Powell’s statement on Wednesday. Particular attention is paid to comments on new steps the Fed can take against the corona crisis.

The technology giant Apple is in the limelight with a plus of 2.1 percent. Apple is hosting a virtual event later in the day that is expected to showcase new smartwatches and iPads, but not new iPhones.

In addition, the SEC is expected to investigate allegations of fraud, fraud and deception by the electric vehicle manufacturer Nikola. Investor Hindenburg Research accuses Nikola of fraud, for example by providing false information about the performance of his electric vehicles. Nikola denies that as a “short seller” Hindenburg is trying to manipulate the stock by publishing a misleading report in order to take advantage of a price drop after the sharp rise earlier. The Nikola share fell by 8.4 percent.

Cruise Line Carnival (down 7 percent) announced that it plans to issue an additional $ 1 billion in new shares. In addition, Carnival expects a net loss of $ 2.9 billion for the third quarter. The company is in the process of reducing fleet capacity due to the severe impact of the corona crisis on the cruise industry.

Cloud computing company Snowflake can also debut on Wall Street on Tuesday. Snowflake plans to raise more than $ 3 billion by selling shares. The company valuation is said to be more than $ 30 billion.