US banks rose on the stock exchanges in New York on Tuesday. After a successful stress test by the Federal Reserve, they will soon be able to buy back their own shares, and they immediately took advantage of that.
For example, Morgan Stanley is going to buy back its own shares for $ 12 billion, and Goldman Sachs is increasing its dividend payment. Investors liked those plans and put the financial institutions almost 3 and more than 1 percent higher, respectively.
Facebook was also once again able to count on the necessary interest. A judge dismissed an FTC charge of abuse of power at the social media company. That led to a plus of 4.2 percent on Monday and a market value that exceeded $1 trillion for the first time. Shortly after opening on Tuesday, Facebook was slightly down, with a price loss of 0.4 percent.
Furthermore, the major stock market indicators showed small results. Many investors took a breather after the record highs reached the S&P 500 and Nasdaq a day earlier. It also looks at the spread of the Delta variant of the coronavirus, and investors are chewing on more positive expectations from the World Bank about the growth of the Chinese economy. The Dow-Jones index was 0.3 percent in the plus after a few minutes of trading at 34,378 points. The broad-based S&P 500 gained 0.2 percent to 4,298 points, and tech exchange Nasdaq gained 0.1 percent at 14,520 points.
The Delta variant of the virus is emerging in more and more countries. The variant that first appeared in India now slows down or reverses easing. Investors are closely following the figures on this, as new strict measures could harm the economic recovery. This does not seem to be the case in China. The World Bank raised the growth expectations for that country and is now counting on growth of the Chinese economy of 8.5 percent for this year.
United Airlines ordered 270 new aircraft from Boeing (plus 0.8 percent) and Airbus. The airline wants to focus more on travellers who want to pay more for space and luxury onboard, and it was slightly lowered. Walmart gained just 0.2 percent after the retailer announced it would market insulin under its own name. It should be much cheaper than pharmaceutical companies.