New York Stock Exchange operators (AFP/TIMOTHY A. CLARY)
The New York Stock Exchange ended narrowly in negative territory on Friday after mixed activity indicators in the United States which should not discourage the Fed from raising interest rates again in early May.
The Dow Jones index fell 0.42% to 33,886.47 points, the tech-heavy Nasdaq lost 0.35% to 12,123.47 points and the S&P 500 fell 0.21% to 4,137.64. points.
However, the blue chip index posted its fourth positive week in a row.
Several major US banks on Friday unveiled comfortable results for the first quarter thanks in particular to the rise in interest rates, seeming to have avoided the contagion of the turmoil that shook regional banks in early March.
The banking sector was one of the few to conclude in the green (+0.96%) on Wall Street.
At the same time, several activity indicators published Friday in the United States have cooled investors, including retail sales in March which fell by 1%, more than expected.
“Retail sales were weak and disappointing,” largely due to lower gasoline costs but also a decline in auto sales, said Chris Low of FHN Financial.
Another index showed mixed activity last month, that of industrial production.
This rose to +0.4%, more than expected, but it is only because of the demand for heating which boosted the production index of public services while that of manufacturing production fell by 0.5%.
Finally, the University of Michigan published its first estimate of US consumer confidence for April.
While this improved to 63.5 points (+2.4%), consumer expectations for the evolution of inflation, on the other hand, worsened. They now see price increases reaching 4.6% this year when they hoped for 3.6% last month.
Despite these negative signs, one of the governors of the Federal Reserve (Fed), Christopher Waller, argued vigorously for one or more additional interest rate hikes.
“The labor market remains strong and quite tight, and inflation is well above target, so monetary policy needs to be tightened further,” Waller said.
On the bond market, yields on two-year Treasury bonds rose above 4% to 4.09% at 8:30 p.m. GMT against 3.96% the day before. Those at ten years climbed to 3.51% against 3.44% on Thursday.
As for banking results, JPMorgan Chase soared (+ 7.55% to 138.73 dollars) after announcing for the first quarter an increase in its net profit on a turnover record, thanks to rates more remunerative interest.
Citigroup rose 4.78% after reporting better-than-expected first-quarter results, also benefiting from higher interest rates.
Goldman Sachs was driven up (+1.44%).
The health insurance group United Health saw its title fall by 2.74% despite an increase in its turnover and net profit per share in the first quarter. Another insurance group, Travelers, also lost 2.79%.
The big names in “tech” had mixed fortunes, Microsoft yielding 1.28% while Alphabet (Google) advanced by 1.17%.
Elsewhere on the stock exchange, the aircraft manufacturer Boeing slowed down the Dow Jones, dropping 5.56% to 201.71 dollars.
The aircraft manufacturer warned Thursday that deliveries of its flagship aircraft, the medium-haul 737 MAX, would be temporarily disrupted for quality problems on parts supplied by Spirit Aerosystems. The stock of this provider fell more than 20%.
© 2023 AFP
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