Hesitant start of the session on Wall Street while waiting for Powell


PARIS, Nov 30 (Reuters) – The New York Stock Exchange opened flat on Wednesday awaiting a public intervention from Federal Reserve Chairman Jerome Powell and after hard-to-read economic indicators impact on future monetary policy decisions.

A few minutes after the start of trading, the Dow Jones index lost 81.07 points, or 0.24%, to 33,771.46 and the Standard & Poor’s 500 fell 0.07% to 3,955 while the Nasdaq Composite took 0 .25% at 11,011.52.

Jerome Powell is due to speak on economic conditions, inflation and the labor market from 6:30 p.m. GMT during a debate organized by the Brookings Institution in Washington. This could be his last public intervention before the monetary policy meeting on December 13-14, after which the Fed is expected to raise rates again.

According to the real-time barometer FedWatch, the hypothesis of a 50 basis point increase in the rate target of the “fed funds” remains largely favored, but no central bank official has really ruled out for the moment that a further increase of 75 points.

And the economic indicators of the day did not really make it possible to specify the context in which the Fed will have to decide: if the growth of the American gross domestic product (GDP) in the third quarter was revised upwards, to 2.9% in At an annualized rate, job creations in the private sector, at 127,000 in November according to the ADP firm’s survey, are clearly below the consensus.

The latter figure only briefly dented Treasury yields and by the time Wall Street opened, the two-year, more sensitive to interest rate expectations, was up nearly six basis points at 4.53%.

In values, Boeing gains 1.85%, the best performance of the Dow Jones, after the presentation by the president of the Commerce Committee of the United States Senate of a text which could grant the group additional time to modify its 737 MAX 7 models and 737 MAX 10.

Tesla takes 1.96%, supported by figures from the China Merchants Bank International (CMBI) according to which its sales in China almost doubled in November, benefiting from price cuts and promotions on its Model 3 and Model Y.

Biogen wins 6.21% after the publication of results from a clinical trial of an experimental treatment for Alzheimer’s disease showing a slowdown in cognitive degeneration.

Down, the cloud computing specialist NetApp fell 8.02%, its revenue forecast for the current quarter being lower than the consensus.

* For the values ​​to follow, click on (Written by Marc Angrand, edited by Blandine Hénault)



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