(CercleFinance.com) – The New York Stock Exchange rose again on Thursday morning following the publication of poor economic indicators which could encourage the Fed not to raise its rates too hastily.
At the end of the morning, the Dow Jones resumed nearly 0.5% to 30,626.5 points, while the Nasdaq Composite gained 1.2% to 11,182.9 points.
After a relatively hesitant start to the session, Wall Street took advantage of a statistic showing that growth in private sector activity had slowed significantly in June.
The composite PMI index of S&P Global indeed came out at 51.2 in ‘flash’ estimate this month, after 53.6 for the month of May, which brings it closer to the zone of 50 points testifying to a contraction of activity.
Investors are hoping that the increasing signs of a slowing economy will eventually prompt the Fed to adopt a less aggressive policy in order to avoid a possible recession.
The prospect of a slowdown in growth in any case encourages investors to seek refuge in longer-term bonds, considered protective in a less buoyant economic context.
As a result, the spectacular upturn experienced by Treasury bonds since Tuesday continues this morning, with a yield on the ten-year US government bond returning towards the psychological threshold of 3%.
On the equities compartment, the trend is mainly driven by cheap purchases of stocks related to consumption, technology and health.
Within the Dow, the best performances go to Salesforce (+2.6%), Procter & Gamble (+2.3%) and Walmart (+2.3%).
Nike rose 2.2% despite a lowering of the price target from Credit Suisse, which nevertheless concedes that the brand’s appeal remains great among consumers.
Accenture loses 1.2% after tightening its annual EPS target range between 10.61 and 10.70 dollars, and no longer between 10.61 and 10.81 dollars previously, on the occasion of the publication of its quarterly .
Palantir gains more than 4% after an initiation to ‘neutral’ from Goldman Sachs, which nevertheless praises the ‘unique’ positioning of the software publisher in the segment of big data analysis.
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