New false start for Wall Street which ends in the red


The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)

The New York Stock Exchange, which had started on a positive note, finally ended in the red on Wednesday, the fourth session of loss for the Nasdaq, as the market prepares for the announcements of results from the big names in technology.

The Nasdaq, with a strong technological coloring, returned 1.15% to 15,683.37 points. The S&P 500 lost 0.58% to 5,022.21 points and the Dow Jones lost 0.12% to 37,753.31 points.

“The market is starting to focus on company results,” said Peter Cardillo of Spartan Capital. “Today again, the market opened higher, ended lower: this means that there is a rotation, investors are taking their profits without nevertheless causing panic selling,” added the analyst interviewed by AFP .

“For me, it’s a market that is trying to stabilize,” he assured.

Starting Thursday after the stock market closes, Netflix will announce its quarterly results. The streaming leader will be followed next week by Tesla, Meta, Microsoft and Alphabet.

Given the volume of their capitalization, these securities have an over-multiplied influence on the indices.

Thus, on Wednesday, the designer of chips for artificial intelligence Nvidia, whose action has risen 80% since the start of the year, lost 3.87% to 840.35 dollars.

On the bond market, yields eased and the dollar fell for the first time since the start of the week.

Ten-year rates stood at 4.58% compared to 4.66% the day before around 8:20 p.m. GMT, a peak since October when they were lowered due to geopolitical concerns and stubborn inflation in the United States.

Federal Reserve Chairman Jerome Powell (Fed) dampened hopes of an imminent rate cut.

During a round table in Washington on Tuesday, he indicated that “the latest macroeconomic data” had “clearly not reinforced (the) confidence” of the members of the institution regarding the return of inflation towards its objective of long term, or 2% per year.

“It will probably take longer than expected to achieve this confidence,” the Fed president further warned.

For Peter Cardillo of Spartan Capital, “the market is starting to think that the possibility of a Fed rate cut this year is close to zero”, which means that the cost of credit will remain expensive for longer.

On the stock market, United Airlines saw its shares soar by 17.45% to $48.74 after announcing better than expected results even if it was a quarterly loss of $124 million.

The airline notably suffered the impact of Boeing’s 737 MAX 9 aircraft being grounded for several weeks. United estimates the cost of these measures at $200 million over the quarter.

Travel sector stocks followed the movement such as American Airlines (+6.60%), Delta (+2.85%) or even cruise lines like Norwegian Cruise (+3.15%).

Boeing reacted little (-0.21%) as safety processes on its production lines came under the spotlight in Congress during a subcommittee hearing to hear complaints from a Boeing engineer , whistleblower denouncing “serious problems”.

The actions of Eli Lilly laboratories were supported (+0.51%) by the announcement that its anti-obesity drug Mounjaro acts against sleep apnea, reducing 63% of symptoms.

The shares of Resmed, which manufactures masks and respiratory monitors against sleep apnea, were under pressure (-6%).

The insurer Travelers was sanctioned (-7.37%) despite rising profits in the first quarter without meeting market expectations. This is the third time in the last four quarters that Travelers has come in below analysts’ forecasts, according to FactSet.

The chip designer Arm, a British subsidiary of the Japanese Softbank, fell by 12% in symbiosis with the shares of the European semiconductor equipment manufacturer ASML which reported a drop in its net profit in a context of international tensions with China.

© 2024 AFP

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