Wall Street: The heaviness is increasing, Boeing weighs down the Dow

(CercleFinance.com) – The New York Stock Exchange showed heaviness on Friday, the fall of Boeing dragging the Dow Jones down while the Nasdaq suffered profit taking after its recent rebound.

As midday approaches, the Dow Jones dropped nearly 0.7% to 33,800.2 points and the Nasdaq Composite fell 0.6% to 12,094.4 points.

Boeing weighs heavily on the Dow Jones, losing nearly 6% following the announcement of delivery delays on the 737 MAX, its flagship model, due to difficulties encountered by a supplier.

The fall in the stock, which now represents only 4% of the benchmark index, recalls its correction in 2019, when the 737 MAX was grounded following the Lion Air and Ethiopian Airlines flight accidents.

Surprisingly, US equity markets are losing ground despite quarterly results from JPMorgan, Wells Fargo and Citigroup, all of which came in at levels above investor expectations.

JPMorgan jumped 7% following the publication by the first American bank of first-quarter earnings that were well above forecasts.

Citigroup won 3% after reporting an 8% increase in net profit, a performance above expectations, thanks in particular to the dynamism of its private banking activities.

Wells Fargo follows the market, but far behind (+0.1%), after having published a profit better than expected in the first quarter, under the effect of a sharp reduction in its expenses.

On the statistical side, investors learned before the opening that US import prices had suffered in March their most marked drop in nearly five months (-0.6%) due to the continued decline in oil.

Retail sales meanwhile fell more than economists expected in March, falling 1% sequentially after falling 0.2% the previous month.

Conversely, the consumer confidence index calculated by the University of Michigan rose to 63.5 this month, after 62 in March, while analysts were expecting it around 62.7.

On the foreign exchange market, the dollar is rising again against the euro, which is trading around 1.0985 after crossing the symbolic threshold of 1.10 yesterday.

The yield on 10-year Treasury bonds, which had fallen in recent days due to easing inflation expectations and Fed rate hikes, recovered more than six basis points to 3.52 %.

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