Wall Street: The decline is confirmed in the wake of the ISM


(CercleFinance.com) – The New York Stock Exchange is trading lower on Monday morning, the better than expected figure for the ISM services index reinforcing fears of further rate hikes by the Federal Reserve.

At the end of the morning, the Dow Jones index lost 0.6% to 34,234.4 points, while the Nasdaq Composite fell 0.8% to 11,364.7 points.

The Institute for Supply Management (ISM) announced at the start of the session that its index of service sector activity had risen from 54.4 in October to 56.5 in November, a surprise since analysts were expecting it. down to 53.3

While this indicator bodes well for fourth-quarter growth, it further complicates the ongoing debate over the evolving timing of the Fed’s monetary policy tightening.

Another manufacturing indicator, the PMI index of purchasing managers compiled by S&P Global, came to maintain a little more doubt: at 46.2 in November, it is clearly lower than 47.8 in October.

The ISM and the PMI are calculated using two different methodologies.

Weighing also on the trend, orders to US industry continued to rise in October, rising by 1%, showing the good resistance of the manufacturing sector.

As a result, all the S&P sector indices are in the red, with the most marked declines coming from consumer goods (-1.7%) and finance (-1.5%).

On the energy market, the barrel of American light crude oil (WTI) advanced by 2.6% to more than 82 dollars after the decision of OPEC + not to change its production objectives.

The boycott of Russian oil and diesel – which begins on Monday – also supports prices.

On the bond compartment, the yield on ten-year US Treasury bonds rose by seven basis points, to 3.57%.

On the values ​​side, Starbucks (-1.1%) showed Monday one of the strongest declines in the Nasdaq 100 index, penalized by the lowering of the recommendation of analysts at Deutsche Bank, which they justified by questions of valuation.

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