The facade of the New York Stock Exchange (AFP/ANGELA WEISS)
The New York Stock Exchange ended mixed on Monday, searching for direction throughout the session after attempting a rebound late last week amid concerns over global growth amid disappointing Chinese data.
According to final results at the close, the Dow Jones index has nibbled 0.08% to 32,223.42 points. The high-tech Nasdaq dropped 1.20% to 11,662.79 points, after its sharp rise on Friday (+3.82%). The S&P 500 fell 0.39% to 4,008.01 points.
“Equity market conviction remained weighed down by a plethora of concerns, including the Fed’s aggressive tightening campaign and lingering inflationary pressures,” Schwab analysts said.
“Concerns about slowing economic growth have also weighed on sentiment,” they added as lackluster Chinese statistics showed Covid lockdowns are hampering activity in the world’s second-largest economy.
Retail sales fell sharply in two years in May and unemployment rose sharply, Chinese authorities said on Monday.
The downward revisions to the European Commission’s forecasts for the euro zone have not gone unnoticed either: the economic growth projection has been lowered by 1.3 points to 2.7% for 2022 and that of inflation has increased by 3.5 points to 6.1%, due to the war in Ukraine.
In addition, on the American side, the manufacturing indicator for the New York region fell sharply, showing a contraction in activity, much more severe than expected. The Empire State barometer, published by the Fed, plunged 11.6 points, showing sluggish business morale.
Yields on ten-year Treasuries fell a little to 2.88% from 2.91% on Friday, as bond prices rose as they were more sought after. This reflected investors’ concern about a possible recession.
Of the eleven S&P sectors, four ended up including energy (+2.63%) and health services (+0.71%).
On the odds, the title of Twitter plunged 8.20% to 37.38 dollars, falling below the level where it was when Elon Musk revealed that he had acquired a stake.
The action was worth 39.31 dollars when the boss of Tesla announced that he held 9.2% of the capital, before formulating, a few days later, an offer at 54.20 dollars, valuing the group some 44 billion dollars.
Since then, the boiling multi-billionaire seems to procrastinate, dragging the action downward. The title of its Tesla group was offloaded by 5.88% to 724.37 dollars.
The bidding continued around Spirit Airlines (+13.60% to 19.29 dollars). The low-cost American company JetBlue Airways (-6.06% to 9.45 dollars) has announced that it is launching a hostile takeover bid (OPA) on its rival Spirit Airlines, which refused its previous friendly offer in favor of a merger with Frontier Airlines (+5.85% to 9.23 dollars).
JetBlue is offering a price of $30 a share for Spirit Airlines, which is $3 less than the initial approach.
Investors reacted little to the news that McDonald’s (-0.09%) will withdraw entirely from Russia, after more than 30 years of presence in the country.
McDonald’s opened its first restaurant in Moscow in January 1990, just under two years before the collapse of the USSR.
The chain now has around 850 establishments and 62,000 employees in the country. It intends to resell its entire portfolio to a local player, who should not have the use of the name or the logo at the arch.
© 2022 AFP
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