Markets

Fifth Nasdaq record in a month

W.It is more the technology stocks that shape the upward path of stock prices. Seldom has this been as evident as on Monday on Wall Street. While the traditional Dow Jones Industrial Average Index, which also includes Apple, Microsoft and Cisco Systems, fell 0.3 percent, the Nasdaq 100 index rose by 1 percent to 11,129 points, marking it again a record – the fifth in August, which had previously been twelve trading days.

The technology stocks in the Dow Jones account for around 23 percent, of which more than 16 percentage points are attributable to Apple and Microsoft. On the Nasdaq-100, technology, including telecommunications, make up almost two thirds of the index.

The comparatively low weight of technology stocks in the Dow Jones is also the result of a different weighting method. The venerable Dow Jones, created in 1896, weights stocks according to their price. If he were to do this according to market capitalization, the weight would be a good 47 percent.

Under these circumstances, it comes as no surprise that the broad S&P 500 index (also a market capitalization-weighted index) rose 0.3 percent to 3381 points, and thus ended up between the two other stock market barometers.

So it’s not all that black and white on Wall Street after all. Because on Monday it wasn’t the technology stocks that gave the Dow Jones a boost. Microsoft gained 0.7 percent, but Apple gave 0.3 percent.

While Microsoft pulled the Dow Jones up 9.5 points, Apple pushed it down 8.2 places and, overall, technology stocks cost the Dow seven of the 86 points that the index lost on Monday.

The Nasdaq-100 pulled up completely different values, especially Tesla, with a weight of 2.7 percent, after all, the seventh-heaviest component of the stock market barometer. With a premium of more than 11 percent, the price rose to a record high of $ 1,836. He is still benefiting from the prospect of a share split, which would make the share more interesting again for small investors, who have a not to be underestimated part in the rise of the price.

What leaves you feeling uncomfortable here is the fact that the pessimist John Murphy of Bank of America also upgraded his investment rating from “Underperform” to “Neutral” last Friday. Thanks to the price increases, Tesla can carry out lucrative capital increases that can be used to finance accelerated growth. Although he is still fundamentally skeptical of the share, he expressed the belief that the growth story will still support it.


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To the detailed view

But even if Apple gave way – only 31 of 103 stocks on the Nasdaq 100 closed in the red, including not least non-technology stocks such as the retailer Walgreens Boots, the energy supplier Exelon or the hotel chain Marriott, but also internet stocks that are fortunately not favored at the moment like booking.com

And the most in-demand stocks weren’t just technology stocks, either. The largest surcharges in the S&P 500 index of 7 to 9 percent were recorded by the textile group L-Brands, the mining group Newmont and General Motors.

Investors also continued to wrestle for shares in the Tübingen vaccine developer Curevac. Their price rose 38 percent to $ 77.20. On the first day of trading on Friday, the price had tripled to $ 55.90. Curevac boss Franz-Werner Haas had not ruled out accelerated approval for his corona vaccine candidate over the weekend, which is currently only in phase I of the tests.

That doesn’t mean anything: While almost two thirds of the projects survive phase I, only about one in ten is approved in the end, 42 percent still fail in phase III,

As far as the German stock market is concerned on Monday, this is expected to just be maintained, not least in view of the essentially unchanged trend in futures trading on the S&P 500 index, which, however, had clouded over in the morning. Perhaps that’s because there are simply too few technology stocks in Germany.

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