PARIS (Reuters) – The New York Stock Exchange opened in scattered order on Monday in a wait-and-see context before the publication of several economic indicators and comments from central bankers scheduled for this week.
In early trading, the Dow Jones index, the only one of the three major Wall Street indices to have recorded a weekly decline last week, lost 139.54 points, or 0.36%, to 38,449.62 points. The Standard & Poor’s 500 fell 0.11% to 5,425.55 points after reaching an unprecedented peak last week.
Goldman Sachs on Monday raised its year-end target for the S&P 500 index to 5,600 points from 5,200 previously, representing an increase of around 3.1% from Friday’s close.
The Nasdaq Composite nibbles 0.02%, or 2.72 points, to 17,691.608, trying to maintain the momentum of five consecutive records of closing gains.
Some investors, however, doubt the lasting nature of the stock market rally while growth stocks and technology groups have essentially fueled the gains on Wall Street since the start of the year.
“There is not much appetite for a real sell-off at the moment due to the perception that the current momentum will continue and that stocks will continue to grow,” writes Daniela Hathorn, markets analyst at Capital. com.
“But the fact that the rise was mainly driven by a few specific stocks means that the decline could be even more marked,” he warns.
Investors are also awaiting comments from several officials at the US Federal Reserve (Fed), including John Williams, Patrick Harker and Lisa Cook, while data such as industrial production, retail sales, construction site and activity indices are planned for this week, which will be cut from Wednesday’s session due to a public holiday.
In terms of values, semiconductor manufacturers such as Nvidia (+1.13%), Micron Technology (+2.65%) and Arm Holdings (+2.18%) are still in demand amid the craze for artificial intelligence.
Berkshire Hathaway (-0.19%) is in the red after the announcement of a sale of 1.3 million shares listed in Hong Kong of the Chinese electric vehicle manufacturer BYD.
Autodesk takes 3.98%, activist investor Starboard Value having taken a stake of around $500 million in the capital of the design software publisher, according to the Wall Street Journal.
Best Buy advances 1.66% thanks to the increase in UBS’s recommendation to “buy”.
Amc Networks falls 27.78%, as the media group’s planned capital increase raises concerns.
(Written by Claude Chendjou)
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