Wall Street higher ahead of the G7 summit


    The stock exchanges in New York were closed slightly higher on Friday. The trade problems between the United States and its main allies were again in the lead in the run-up to the G7 summit in Canada. The technology sector felt pressured by reports that tech giant Apple has warned subcontractors for lower orders.

    The Dow-Jones index closed 0.3 percent higher at 25,316.53 points. The broad S & P 500 also rose 0.3 percent to 2779.03 points and technology heavy Nasdaq went up 0.1 percent to 7645.51 points.

    The G7 summit took place on Friday and Saturday. The trade policy of President Donald Trump was set to play a leading role. On Twitter, Trump once again proclaimed to the European Union and Canada the unfair trade practices he believes against the US. The attention of investors will largely depend on the degree of hostility in the discussions.

    Apple, according to the Japanese business newspaper Nikkei, has warned suppliers that orders for parts for the iPhone will drop by 20 percent in the second half of this year. Apple allegedly counts on lower sales of iPhones than previously thought. Shares of the tech giant were down 0.9 percent.

    Chipmaker Broadcom published results. Apple’s supplier saw sales rise 20 percent year-on-year in the quarter. Broadcom maintained its expectations for sales in the current quarter. The company was 2.5 percent in the red.

    Industry partners such as Intel and Qualcomm rose as much as 1.5 percent. Advanced Micro Devices (AMD) went up 2.4 percent.

    Furthermore, it became known that telecom giant Verizon (up 0.4 percent) hired Hans Vestberg as new topman. He will take over from Lowell McAdam on August 1st. Vestberg was previously CEO of Ericsson in Sweden and has been Verizon technology director since April last year.

    Canadian aircraft and train builder Bombardier (down 0.5 percent) increased the profit expectation for the whole year and announced that the cooperation with Airbus on aircraft of the C-series which will be completed sooner. Airbus has taken a majority interest in the C series.