Traders at the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange opened lower on Friday, still worried about the upcoming monetary tightening in the United States and disappointed by corporate results, Netflix in the lead.
Around 2:45 p.m. GMT, the Dow Jones yielded 0.06%, the Nasdaq index, 0.77%, and the broader S&P 500 index, 0.47%.
The Dow Jones was heading for a sixth straight negative session, while the Nasdaq is down almost 13% since its peak in late November.
It’s “a choppy weekend, with strong selling momentum as anxiety takes control of the market,” Oanda analyst Craig Erlam said in a note.
Wall Street “has not yet taken up the refrain of 2021, + buy the dip +”, namely to start buying as soon as the market begins to fall, described, in a note, Patrick O’Hare, analyst from Briefing.com.
For Karl Haeling, of the LBBW bank, the main source of concern for the market remains “the prospect of a rise in interest rates and a drain on liquidity from the Fed (American central bank) this year”.
If since the beginning of the earnings season, many companies have done better than expected, the New York Stock Exchange has been treated to a few unpleasant surprises from stars of the rating, which has further darkened the mood. general.
“We took a double kick in the back yesterday with Peloton and Netflix,” he added, the first in the midst of a post-Covid crisis and the second in search of growth. “It contributed to the whole.”
Investors also remained concerned, according to Karl Haeling, by the lack of diplomatic progress in the Ukrainian file, which remains under threat of an attack from Russia.
The VIX index, which measures market volatility, has surged in recent hours to its highest level since the early days of the Omicron wave.
Sign of what looks more and more like a cold snap on the markets, investors took refuge in bonds. The benchmark rate for ten-year US government bonds fell to 1.76%, against 1.83% the day before.
On the side, all eyes were on Netflix, which unscrewed, giving up more than 20% in the first exchanges (-22.33% to 394.75 dollars).
The platform reported Thursday, after trading, a net gain of subscribers in the fourth quarter of 2021 slightly below expectations, but above all published a very cautious forecast for the same parameter in the first quarter.
The group forecasts an increase of 2.5 million net subscribers, which would constitute the most modest increase for a first quarter for twelve years.
The IT infrastructure giants continued to suffer, like the graphics card manufacturer Nvidia (-1.42%) or the microprocessor specialists AMD (-0.59%) or Micron (-1.93%).
Intel was doing well (+0.67% to 52.39 dollars), after the announcement on Friday of an investment of more than 20 billion dollars in the construction of two factories in Ohio.
After Thursday’s collapse, following the announcement by CNBC that the group was suspending production, Peloton began a rebound (+4.67% to 25.35 dollars).
In a letter distributed internally and consulted by the Wall Street Journal, the general manager of the specialist in high-end exercise bikes and treadmills only mentioned a “recalibration” of production.
Under pressure, the group published preliminary quarterly results on Thursday evening, which show a turnover of 1.14 billion dollars, in the forecast range initially given by Peloton, i.e. between 1.1 and 1, 2 billion.
The sports equipment manufacturer Under Armor paraded (+1.41% to 16.20 dollars) after the publication of several positive notes from analysts, in particular Citigroup, which sees the title double in value.
© 2022 AFP
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