The New York Stock Exchange was down slightly on Monday after the opening, lacking in confidence despite Friday’s sharp rebound which did not prevent a new consecutive weekly loss for the indices.
• Read also: Wall Street closes a nightmarish week up sharply
• Read also: Inflation slows down a bit in the United States, but remains very high
Around 2:30 p.m. GMT, the Dow Jones index yielded 0.19%, the Nasdaq 0.22% and the S&P 500 0.15%.
Friday, after a nightmarish week, the Dow Jones had recovered by 1.47% to 32,196.66 points. The Nasdaq index had gained 3.82% to 11,805.00 points. The broader S&P 500 index rose 2.39% to 4023.89 points.
In a context of tightening of financial conditions by the central banks and while threats accumulate for growth, the New York place experienced its seventh week of decline in a row for the Dow Jones, sixth for the S&P 500.
The Nasdaq, which concentrates technology stocks, has lost 27% since its peak at the end of 2021, while the S&P 500, the most representative index of the American market, is down 16%.
Monday, the aversion to the risk is a feeling which persists on Wall Street , noted the analysts of Wells Fargo in a note. “Concerns over the outlook for global economic growth continue to weigh on confidence,” they added.
Investors were digesting disappointing data in particular from China, where retail sales suffered their biggest drop in two years in May and where unemployment rose sharply.
The poor forecasts of the European Commission for the euro zone have not gone unnoticed either: the economic growth projection has been lowered by 1.3 points to 2.7% for 2022 and that of inflation has increased by 3, 5 points to 6.1%, due to the war in Ukraine.
In addition, on the American side, the manufacturing indicator for the New York region fell sharply, showing a contraction in activity, much more severe than expected. The Empire State barometer, published by the Fed, plunged 11.6 points, showing sluggish business morale.
To add to the gloomy mood, former Goldman Sachs boss Lloyd Blankfein said in an interview on Sunday that we had to prepare for a recession.
Not to mention the comments Monday, on the CNBC channel, of the former chairman of the American Federal Reserve (Fed), Ben Bernanke, who considered that the central bank had been slow to respond to inflation and that it was “a error”.
Yields on ten-year Treasuries fell a little to 2.86% from 2.91% on Friday as bond prices rose as they were more in demand. This reflected investors’ concern about a possible recession.
On the odds, the title of Twitter fell 5.24% to 38.58 dollars falling below the level where it was when Elon Musk revealed that he had acquired a stake.
The action was worth 39.31 dollars when the boss of Tesla announced that he held 9.2% of the capital, before formulating, a few days later, an offer at 54.20 dollars, valuing the group some 44 billion dollars.
Since then, the boiling multi-billionaire seems to be procrastinating, dragging the stock down.
The bidding continued around Spirit Airlines (+11% to 18.85 dollars). The low-cost American company JetBlue Airways (-3.33% to 9.73 dollars) has announced that it is launching a hostile takeover bid (OPA) on its rival Spirit Airlines, which refused its previous friendly offer in favor of a merger with Frontier Airlines (+6.65% to 9.30 dollars).
JetBlue is offering a price of $30 a share for Spirit Airlines, which is $3 less than the initial approach.
Among the results of companies, the big names in the distribution sector were expected this week with Walmart, Target, Home Depot.
Reference-www.tvanouvelles.ca