Wall Street has Mixed Opinions on the Results of Large Companies
After another string of corporate results, Wall Street started the new trading session with small price movements on Tuesday. Then, online store group Alibaba, chemical company DuPont and clothing retailer Under Armor opened the books.
Investors reacted differently. In addition, there are concerns in the financial markets about the spreading Delta variant of the coronavirus and the attitude of China towards games companies.
A Chinese state media has called in an article to regulate online gaming. According to Economic Information Daily, many teens are addicted, and mobile games are “spiritual opium”. The news is fueling fears that China wants to tackle the game sector.
The Dow-Jones index fell 0.2 percent to 34,767 points in the first trading minutes. The broad-based S&P 500 fell 0.1 percent to 4384 points, and tech exchange Nasdaq gained 0.1 percent to 14,689 points.
Chinese Alibaba fell about 4 percent in New York. However, the internet company did make a substantial profit in the second quarter. A quarter earlier, the company suffered a rare loss due to a multi-billion dollar fine from the Chinese authorities for monopoly practices.
Under Armor, in turn, gained almost 3 percent in market value, and Dupont was down about 3 percent shortly after the opening bell. New results from cleaning products manufacturer Clorox were clearly not convincing, and this share was reduced by almost 12 percent.
The Dutch NXP, which is listed in New York, also attracted attention. The chip manufacturer has come up with an optimistic outlook but was still 0.5 percent lower on Wall Street. Due to the worldwide chip shortage, there is a lot of demand for chips and not only the former semiconductor division of Philips, but all chip companies have recently experienced significant growth.
There was also other news with a Dutch twist. Soft drinks and snack company PepsiCo sells several juice brands in the United States and Europe to French investor PAI partners, which also owns Rotterdam-based Wicky maker Refresco. PepsiCo was up 0.3 percent in early trading in New York.