An operator of the New York Stock Exchange (AFP/ANGELA WEISS)
The New York Stock Exchange continued its decline on Thursday, investors continuing to digest the gains made since mid-June, in an uncertain period for the economy.
Around 2:05 p.m. GMT, the Dow Jones yielded 0.31%, the Nasdaq index, 0.39%, and the broader S&P 500 index, 0.23%.
After a series of increases, Wall Street caught its breath on Wednesday and continued its decline Thursday at the start of the session, on a place with limited animation by the summer period.
“The market has come a long way” since mid-June, said Adam Sarhan of 50 Park Investments. “So what’s happening is perfectly normal and healthy. He needs to digest.”
“We are in August, we are coming to the end of the earnings season and we are not expecting a lot of macroeconomic data in the next two weeks,” continued the manager.
Like other macroeconomic indicators this week, such as retail sales or even industrial production, a new series of figures published on Thursday depicted a vigorous American economy, which is doing more than resisting the ambient gloom.
The new weekly jobless claims were thus significantly below expectations, and the industrial activity index for the Philadelphia region (northeast) came out positive in August when economists anticipated a third negative month of in a row.
The operators nevertheless noted that about a third of the leaders polled during this survey foresee a contraction in activity within six months.
On Wednesday, the New York market had reacted little to the publication of the minutes of the last meeting of the American central bank (Fed), however eagerly awaited, which did not settle the debate on a possible recalibration of monetary policy. In the coming months.
“We could have had a very bad day yesterday, but in the end, the decline was moderate, which shows strong resilience”, according to Adam Sarhan. “The bulls are in charge.”
After jumping on Wednesday, bond rates eased. The yield on 10-year US government bonds stood at 2.85%, against 2.89% the day before.
Among the few values managing to float on Thursday, the oil companies, supported by the rebound in the price of black gold. ExxonMobil (+2.19%), ConocoPhillips (+1.97%) and Marathon Petroleum (+1.71%) were at the forefront.
The IT infrastructure and components sector was also preserved, in particular thanks to Cisco (+6.67% to 49.76 dollars), specialist in networks, remote computing (cloud) and cybersecurity, which advanced after the publication, Wednesday after market, of results above expectations.
Another catalyst, the American semiconductor specialist Wolfspeed (+23.85% to 106.07 dollars), whose results exceeded forecasts.
Among the few values hailed by investors, there was also Tapestry (+0.16% to 37.17 dollars), the holding company which brings together the ready-to-wear brands Coach, Kate Spade and Stuart Weitzman, whose quarterly profit is came out very slightly above forecast.
The cosmetics group Estée Lauder (+1.73% to 281.32 dollars) capitalized on results above expectations, which prevailed, in the eyes of Wall Street, on its forecasts deemed disappointing for its entire financial year.
The department store chain Kohl’s was punished (-5.68% to 32.02 dollars), after having cut its sales forecasts (now expected to fall) and margins for its entire financial year. 2022 (which ends at the end of January).
© 2022 AFP
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