Commodity Companies Under Pressure on Lower Wall Street

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US stocks started the trading day lower on Thursday. Commodity companies, in particular, were under pressure due to the lower prices of, for example, oil and steel. This was partly due to China’s promise to produce and use less steel.

 

Investors on Wall Street also remain concerned about the rising number of corona infections worldwide, undermining the recovery from the crisis.

The leading Dow-Jones index was 0.3 percent lower in early trading at 34,840 points. The broad S&P 500 fell 0.3 percent to 4385 points, and tech gauge Nasdaq lost 0.5 percent to 14,464 points.

Steel group US Steel and mining company Freeport-McMoRan were down to 5.3 percent. The price for iron ore in the so-called futures trade fell further. Compared to the peak in May, iron ore is traded 40 percent less. This also affects steel prices.

In terms of business results, attention was paid to chip producer Nvidia, among others. That company performed better than expected in the second quarter of its broken financial year, gaining 0.3 percent. Network equipment manufacturer Cisco Systems, in turn, gained 0.6 percent after numbers.

Lingerie brand Victoria’s Secret experienced a 7 percent drop in price. The brand’s sales fell far short of expectations. As a result, it was not possible to increase the margins. Investment app Robinhood Markets was also among the losers. The stock lost 9 percent, mainly due to the weaker outlook for the current quarter. In recent months, the trading platform has mainly benefited from the lively trading of cryptos.

Other companies that came up with figures were department store chains Kohl’s (down 0.7 percent) and Macy’s (plus 6.2 percent). It was also announced that the number of unemployment claims in the United States had fallen more than expected. In addition, the fourth week in a row that the number of applications fell, showing that the labour market conditions are improving despite the increasing number of corona infections.

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