Business

Alibaba and Nike rise on slightly higher Wall Street

Photo: ANP

The Chinese online store group Alibaba and sports brand Nike were among the big winners on the stock exchanges in New York on Tuesday. Investors welcomed Alibaba’s announcement to significantly increase its share repurchase and Nike reported better-than-expected results.

Alibaba jumped 12 percent. The company is ramping up its share buyback program from $15 billion to $25 billion. This is beneficial for investors as the permanent shareholders own a larger share of the company after the buyback. The profit then has to be divided over fewer shares and the profit per share often rises as a result.

Nike rose nearly 6 percent. The sporting goods maker has sold more in the past quarter, despite production disruptions in Southeast Asia due to coronavirus outbreaks and lockdowns. Sales in North America in particular rose sharply.

Stock market indicators on Wall Street bounced back after the loss a day earlier following statements by Jerome Powell. The US central bank president warned that inflation is far too high and that interest rates may need to be raised more quickly to curb the rise in the general price level.

Shortly after opening, the Dow-Jones index rose 0.5 percent at 34,713.79 points. The broad S&P 500 climbed 0.6 percent to 4485.78 points and tech gauge Nasdaq rose 0.7 percent to 13,933.25 points.

In the wake of the plane crash in China, attention also continued to be focused on Boeing (plus 0.4 percent). Airline China Eastern Airlines is temporarily grounding all Boeing 737-800 aircraft that were used in the crash. After the accident, flights were massively canceled in China.

Tencent Music won 1.1 percent. The music branch of the Chinese tech group Tencent made more profit than expected last quarter. The company also announced that it is pursuing a second stock exchange listing in Hong Kong.

Tesla climbed 1.5 percent. The Tesla factory near Berlin was officially opened on Tuesday. The factory is the car brand’s first production facility in Europe. The electric car manufacturer hopes that the factory will better compete with German rivals Mercedes-Benz, BMW and Volkswagen.



Alibaba and Nike rise on slightly higher Wall Street
Source link Alibaba and Nike rise on slightly higher Wall Street

Back to top button