Stock markets in New York opened slightly lower on Tuesday, after the new record levels of the day before. Investors on Wall Street have focused on the quarterly figures of major banks JPMorgan Chase and Goldman Sachs and data on inflation in the United States. US inflation rose faster than expected in June.
JPMorgan Chase, the largest US bank, has more than doubled its second-quarter profits year on year. This benefited from the release of billions of dollars in reserves previously set aside due to the uncertainty about the corona crisis. But the bank also earned more by advising on corporate mergers and acquisitions and supervising IPOs. Shares of JPMorgan Chase nevertheless fell 1.4 percent. Goldman Sachs also earned considerably more from investment banking and lost 0.6 percent.
Inflation in the US stood at 5.4 percent year-on-year in June, the highest level in nearly 13 years. The reopening of the economy is pushing inflation from the corona crisis, increasing demand for various products and goods, which is driving prices. For example, it concerns used cars. High commodity prices, supply chain problems and rising labour costs also contribute to higher inflation as companies pass those costs on to customers.
Inflation plays an important role in the interest rate policy of the US Federal Reserve. Recently, there have been concerns in the financial markets that the high inflation could lead to the central bank phasing out support policies and rising interest rates more quickly.
Shortly after opening, the Dow-Jones index recorded a minus of 0.1 percent at 34,980 points. The broad S&P 500 fell 0.1 percent to 4378 points, and the technology exchange Nasdaq fell 0.3 percent to 14,696 points.
Snack and soft drink producer PepsiCo also opened the books and gained 1.7 percent. The company took advantage of the reopening of American nightlife and raised its expectations for this year.
Boeing fell 3.3 percent. The aircraft manufacturer will deliver far fewer 787 Dreamliners than anticipated this year. In addition, the American aviation authority FAA has announced that undelivered Boeing 787 Dreamliners have a new defect.
Virgin Galactic lost again and was at a minus of 4.5 percent after losing more than 17 percent on Monday. A day after founder Richard Branson took a test flight of his company’s rocket to 50 miles above the Earth’s surface, Virgin Galactic announced its intention to issue new shares for $500 million, which did not sit well with investors.