Wall Street Opens Higher as Tech Funds Recover
Tech funds rebounded somewhat on Tuesday at the start of the trading day on Wall Street. The day before, they had been lowered even further.
The recovery generated generally positive sentiment on the New York stock markets, where the significant indicators took slight gains in the opening minutes.
Investors further responded to a job report from payslip processor ADP. It calculated that 742,000 jobs were added in April, the most substantial increase in months. With that, there seems to be more evidence that the US economy is recovering well now that many people have been vaccinated against corona, and the government has come up with substantial aid packages. However, the figure was lower than what economists had generally expected.
The Dow Jones index was 0.1 percent in the plus at 34,157 points after a few minutes. The broad-based S&P 500 rose 0.3 percent to 4,178 points, and the Nasdaq tech exchange rose 0.6 percent to 13,713 points.
Tech funds were put on sale on Monday. Bargain hunters, among others, caused those shares to rise again a day later. Apple, Amazon, Microsoft and Google parent Alphabet were up 1.4 percent higher.
Auto group General Motors (GM) had a higher profit in the first quarter than a year earlier, when the company was severely affected by the start of the corona pandemic. Furthermore, the manufacturer of cars from brands such as Chevrolet and Cadillac maintained financial expectations despite the chip shortage in the car industry. The share won more than 3 percent.
Industry peer Stellantis (plus 5.8 percent) also came up with figures. The parent company of Fiat, Jeep and Peugeot, among others, said it would end a deal with Tesla to merge the CO2 emissions of both companies. For the manufacturer of electric cars, this means that it loses a source of income. Deals with other car groups have ensured that Tesla (plus 0.4 percent) made a profit in recent years.
Other companies that opened the books included hotel chain Hilton Worldwide (minus 0.4 percent), food company Del Monte (plus 10 percent) and media company New York Times (minus 2.6 percent).