On Monday, June 15, US stock indices show mixed dynamics in the first half of the trading session. Technological sector papers look better than the market, which allowed the Nasdaq Composite index of high-tech industries to enter the green zone. At the same time, most sectors are declining amid growing concerns about the second wave of the coronavirus pandemic. For example, outbreaks in Beijing and Tokyo, as well as in a number of US states, have caused concern for the investment community because of a possible slowdown in economic recovery.
Another reason for the decline was the Fed’s monetary policy report released last Friday, in which the regulator expressed concerns about the state of small and medium-sized businesses in the country and the likely increase in the number of bankruptcies in this segment. It should be noted that the tone of Jerome Powell’s statements last week was rather restrained, which prompted investors to correlate the pace of recovery in the stock market and the real economy.
Among the macroeconomic indicators published on Monday, one can single out the June data on the index of business activity in the industry of the Federal Reserve Bank of New York. The indicator reached the level of -0.2 points in comparison with -48.5 points in May, which significantly exceeded analysts’ expectations of -29.8 points.
As for the market dynamics in the industry sector, the leaders in growth were the papers of the technological sector, while the oil and gas and telecommunications sectors are outsiders.
By 12:40 NY, the Standard & Poor’s 500 wide market index was down 0.22% to 3,034.60 points, the blue chip indicator Dow Jones Industrial Average was trading at minus 0.42% at 25,499.10 points, and the high-tech industries index Nasdaq Composite is at 9611.20 points, adding 0.23%.
By 7:40 p.m. BUT, Light crude oil futures were trading up 0.60% at $ 36.73 a barrel. The cost of gold is reduced by 0.67% and is at around $ 1,725.6 per troy ounce. The EUR / USD currency pair is growing by 0.21%, trading at 1.128.
Securities of technology sector companies as potential leaders in the post-coronavirus world are in high demand among investors. Shares of Zoom Video Communications, Electronic Arts, and Take-Two Interactive Software add 2.13% to 6.81%.
Also better than the market are the papers of the media company Genius Brands, which jumped 11.54% after the announcement that its shareholders will include actor and former California governor Arnold Schwarzenegger. So, Schwarzenegger will receive shares of the company in exchange for participating in the creation of cartoons.
Hertz Global Holdings, a bankrupt car rental corporation, lost 19.54% as market outsiders. The reason for the decline was the announcement of plans to place an additional issue of shares in the amount of up to $ 500 million.
Shares of United Airlines fall in price by 5.02% against the backdrop of the announcement of a loan in the amount of $ 5 billion.