(New York) The New York Stock Exchange opened in disorganized order on Tuesday, stimulated by results from companies performing well but with its gaze still focused on the Middle East where uncertainty reigns.
Around 10:10 a.m. ET, the Dow Jones was up 0.24%, the NASDAQ technology index was near balance (+0.04%), as was the broader S&P 500 index. (-0.09%).
After a clear decline on Monday, the New York market recovered, supported by a flurry of company publications before the opening.
Bank of America, Morgan Stanley and health insurer UnitedHealth all positively surprised the market, even if none of them sparked.
“The market is hungry for good news,” commented Adam Sarhan of 50 Park Investments.
But “overall, there is a lack of conviction on the buyer side, whether for bonds or stocks,” said Patrick O’Hare of Briefing.com in a note.
“There is enormous uncertainty over what will happen in the Middle East”, where Israel has promised a response to Iran’s air attack on the night of Saturday to Sunday, explains Adam Sarhan.
Operators noted that numerous indices, including the S&P 500, crossed downward on Monday a major technical threshold, namely the average of the last 50 trading days, a sign of a lasting decline.
“The market is in a waiting position,” says Adam Sarhan. “Going (under this threshold) briefly is not a tragedy. But if he stays there for several weeks, or months, it becomes a problem. »
“For the moment, it is a moderate decline,” continued the manager. “Is this going to turn into a correction? The question is asked. »
Wall Street noted the fall in housing starts in the United States (-15% over one month), which came out well below economists’ forecasts.
For Rubeela Farooqi, of High Frequency Economics, this decline can be, in part, attributed to an environment of high interest rates, which discourages many potential buyers.
On the bond market, the yield on 10-year government bonds stood at 4.67%, compared to 4.60% the day before at closing. It had risen earlier to 4.69%, the highest in almost five months.
On the market, the health insurer and pharmacy operator UnitedHealth (+5.93%), the largest weighting in the Dow Jones (7.7% of the index) was prancing, despite a net loss and costs rising more sharply. than his income.
The Minnetonka (Minnesota)-based group nevertheless managed to surpass analysts’ expectations despite an exceptional charge of $872 million linked to a computer attack which disrupted payments to healthcare professionals.
Bank of America (-3.66%) did not capitalize on its better-than-expected results, with investors focusing on the net interest margin (interest received deducted from interest paid), which contracted, as the institution had to pay more for its deposits.
Its competitor Morgan Stanley (+3.61%) 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 (-1.68%) paid a turnover slightly below projections, marked by an international slowdown.
Several major players in the defense and arms sector remained supported by the deterioration of the situation in the Middle East, after the Iranian attack on Israel. Lockheed Martin (+1.21%) and Northrop Grumman (+0.48%) were on the rise.
The days go by and the same for Donald Trump’s media group, Trump Media and Technology Group, which controls his social network Truth Social. The stock, in decline again (-5.23%), on Tuesday, has lost almost 70% of its value since its peak on March 26, the first day of trading.
Tesla (-3.77%) 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.
NASDAQ
reference: www.lapresse.ca