(CercleFinance.com) – The New York Stock Exchange rose slightly on Monday, with investors opting for caution as we approach another week rich in economic indicators and corporate results.
At the end of the morning, the Dow Jones advanced 0.2% to 35,524.8 points, while the Nasdaq nibbled 0.1% to 14,329.4 points.
After the Fed and a wave of results last week, the week promises to be still very busy on Wall Street with a new wave of quarterly accounts on the program, culminating in the employment figures for July.
The statistic is closely followed by the Federal Reserve and should help it determine whether to continue its monetary tightening, or on the contrary ease off on its rate hikes.
The S&P 500 has just posted three consecutive weeks of increases in anticipation of a soft landing for the US economy, which should avoid recession this year.
The recovery in the indices is also due to other factors such as the fact that the results of companies in the second quarter have so far been rather solid.
According to FactSet data, 80% of S&P 500 companies reporting earnings so far reported earnings above analysts’ estimates, a performance above historical averages.
Nine of the 11 major S&P sector indices are in the green, with the biggest increases coming from energy (+0.9%) and real estate (+0.9%), two of the worst performing sectors this year .
The technology compartment, at the top of the major sector indices this year, is changing little pending the results of Apple (+0.3%) and Amazon (+1%), scheduled for Thursday evening.
The easing observed on the government bond market also contributes to the positive trend on the equity market.
Government bond yields are heading back down, reflecting a relative easing of fears of further Fed rate hikes in the face of ebbing inflation.
The ten-year US lost more than a basis point to 3.95% after crossing the 4% threshold last Friday.
With the decline in Treasuries yields, the dollar lost ground against the euro, which took the opportunity to gain 0.1% to 1.1020 dollars.
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