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Wall Street in disarray, reluctant to go higher


The Wall Street district of New York (AFP/ANGELA WEISS)

The New York Stock Exchange opened on a mixed note on Friday, rather satisfied with corporate results so far, despite disappointments, but still hesitant to accelerate the rebound of recent weeks.

Around 2:10 p.m. GMT, the Dow Jones gained 0.06%, the Nasdaq index yielded 0.59% and the broader S&P 500 index returned 0.16%.

At the start of the session, the S&P 500 crossed 4,000 points for the first time in a month and a half, but immediately fell back slightly below this threshold, which is psychologically important for investors.

“We had a big upward movement” for a month, underlined Adam Sarhan, of 50 Park Investments, with an S&P 500 which climbed 10% over the period. “Now the question is whether we are on a rebound in a bear market or are we on the upside again.”

It is thus frequent that within a long sequence of decline, lasting several months or even several years, the indices experience jumps, sometimes to double digits.

“We will need more time to determine it,” warned the manager.

The New York market continued to digest results that were less bad than expected, but which still delivered their share of disappointments.

“Reaction to the releases has been surprisingly positive,” said Adam Sarhan, who pointed to the fact that none of the big names who have released their numbers so far have completely missed the mark.

“We can consider that things could be much worse,” said Patrick O’Hare of Briefing.com in a note.

Risk appetite remained moderate, as illustrated by the jump in bonds, the rate of which moves in the opposite direction to the price. The yield on US government bonds at 10 fell to 2.74%, a first for almost two months, against 2.87% the day before.

The daily firmer belief of operators that the US central bank (Fed) is moving towards a 0.75 percentage point hike in its key rate next week also deprived bond yields of support, as did the dollar, while the market was carried away last week, at the idea of ​​a possible increase of one point.

On the equity market, Snap, parent company of the social network Snapchat, was beaten (-35.08% to 10.61 dollars) after the publication, Thursday after the stock market, of a turnover below expectations and a loss almost tripled over one year.

After the disappointment of Snap, the case turned into a bloodbath for social networks, from Meta (-6.05%) to Pinterest (-11.17%). By extension, companies also dependent on advertising, such as Alphabet (-2.75%) or the digital marketing platform The Trade Desk (-5.81%) were in distress.

Ironically, Twitter escaped relatively this wipe (-0.58% to 39.29 dollars), despite the results, again, significantly lower than expected.

Analysts have thus welcomed the increase in the number of so-called “monetizable” daily active users of Twitter, that is to say who may be exposed to advertising on the platform.

“It’s better than feared and the numbers remain relatively strong considering the current environment,” reacted, in a note, Dan Ives, of Wedbush Securities.

Among the few other failures, the steelmaker Cleveland-Cliffs (-1.63% to 16.86 dollars), whose profit came out below forecasts, or the telephone operator Verizon (-5.92%), which has revised its objectives downwards.

The toymaker Mattel also fell (-3.85% to 23.24 dollars) despite better than expected results. The doll business has seen a downturn, especially Barbies and American Girls.

American Express paraded him (+3.64% to 155.64 dollars) after the publication of better than expected results, supported by the recovery in tourism but also business travel. The credit card specialist also raised its growth targets for the full year.

© 2022 AFP

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