(New York) The New York Stock Exchange ended in mixed order on Tuesday, generally ignoring the uncertainty in the Middle East, the rise in bond rates and cautious remarks from the president of the American central bank (Fed).
The Dow Jones gained 0.17%, the NASDAQ index lost 0.12% and the broader S&P 500 index lost 0.21%.
The New York market has triumphed over several obstacles, first and foremost the renewed tension in the Middle East.
According to the Jerusalem Post, the Israeli army has finalized a response plan to the Iranian attack which targeted Israel on Saturday evening. According to the daily, however, she has not chosen a date to implement it.
Another unfavorable element is the new surge in bond rates. The yield on 10-year US government bonds rose to 4.69%, a first in almost five months.
The market also had to deal with new statements from Fed President Jerome Powell.
During a round table in Washington, he indicated that “the latest macroeconomic data” had “clearly not reinforced (the) confidence” of the members of the institution regarding the return of inflation towards its long-term objective. term, or 2% per year.
Inflation thus rebounded in March in the United States, to 3.5% over one year compared to 3.2% previously, according to the CPI consumer price index.
“As it stands, given the strength of the job market and the trajectory of inflation, it is appropriate to give more time to restrictive monetary policy to take effect,” added the banker, referring to the level high rates from the Fed, which aims to slow the American economy.
For Art Hogan, of B. Riley Wealth Management, operators “have already integrated a lot of the elements that worry them.
» The initial reaction is to take into account the worst scenarios. Then, we wait,” he continued, “in particular” to see how Israel will respond. Will it be measured or will we be dragged into something we don’t want? “
In the meantime, “you have a market that has found a sort of short-term equilibrium,” according to the analyst.
In a difficult context, the New York market benefited from several publications from companies which surprised favorably, without surprising.
To do better than the two other flagship indices, the Dow Jones relied on the health insurer and pharmacy operator UnitedHealth (+5.22%), the largest weighting of the Dow Jones (7.7% of the index ).
The Minnetonka (Minnesota)-based group managed to surpass analysts’ expectations despite an exceptional charge of $872 million linked to a computer attack which disrupted payments to healthcare professionals for several weeks.
Bank of America (-3.53%) did not benefit from better-than-expected results, with investors focusing on the net interest margin (interest received deducted from interest paid), which contracted as the establishment had to remunerate more on its deposits.
Its competitor Morgan Stanley (+2.47%) also did better than expected, in particular thanks to the investment bank, which saw an acceleration in debt and equity issuance.
The conglomerate Johnson & Johnson (-2.13%) paid a turnover slightly below projections, marked by a slowdown internationally.
Apple took a shine (-1.92%) after a lowering of forecasts by Needham investment firm analyst Laura Martin, who took into account the slowdown in iPhone sales in China.
Tesla (-2.71%) fell to its lowest level in almost a year, weighed down by the deterioration of its competitive position in the electric vehicle sector, in which Chinese manufacturers are eating away at market share.
While gold is breaking record after record, the Canadian mining company Barrick Gold, listed in Toronto and New York, fell (-5.12%), after reporting sales and extraction of the yellow metal below the analyst expectations.
reference: www.lapresse.ca