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Wall Street High Just After US Benefits and Retail Sales Figures

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The stock exchanges in New York opened on Thursday without major price movements after the day’s price gains. Investors on Wall Street are mainly focused on US benefits claims and retail sales figures.

 

That data can provide more insight into the state of the US economy and the impact of the Delta variant of the coronavirus on the economic recovery from the crisis.

Retail sales rose 0.7 percent month-on-month in August, while economists had expected a decline. Consumers in the US seem unaffected by the advance of the Delta variant and have been spending more in stores. Consumer spending makes up the bulk of the US economy.

Weekly applications for unemployment benefits also rose to 332,000. This is partly due to increased applications in the state of Louisiana due to the aftermath of Hurricane Ida, which forced many companies to close temporarily.

Shortly after the start, the Dow-Jones index recorded a minus of 0.1 percent at 34,777 points. The broad S&P 500 gained 0.1 percent to 4484 points, and technology indicator Nasdaq fell 0.4 percent to 15,102 points.

The casino companies remained in the spotlight amid fears of stricter regulations in the Chinese gambling paradise of Macau. Wynn Resorts and Las Vegas Sands that have casinos on the peninsula were down more than 3 percent. These companies have already suffered significant price losses in recent trading days. JPMorgan Chase also cut investment advice for those stocks due to all the uncertainty surrounding Macau.

The maker of meat substitutes Beyond Meat received a write-down from Piper Sandler and lost almost 4 percent. According to the investment bank, expectations regarding the company’s strategy to sell products in supermarkets are high, and turnover could be disappointing in the second half of the year.

Meal delivery company DoorDash won almost 5 percent thanks to a buy recommendation from Bank of America. The bank is positive about the growth opportunities of DoorDash. However, Bank of America did lower the advice for electric car builders Fisker and Lordstown Motors, who lost to about 5 percent. According to analysts, competition in that market is increasing.

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