Wall Street starts mostly down while waiting for the Fed

(New York) The New York Stock Exchange is mostly in the red, weighed down by technology after a mixed reception to the results of Alphabet and Microsoft, while investors await a decision from the Fed.

The Dow Jones index remained stable (+0.08%), the NASDAQ fell 1.34% and the S&P 500 fell 0.70% around 10:30 a.m. (Eastern time).

On Tuesday, the Dow Jones gained 0.35% to 38,467.31 points, which allowed it to reach a new high. The NASDAQ, with a strong technological coloring, fell by 0.76% to 15,509.90 points and the S&P 500 lost 0.06% to 4924.97 points.

Two of the “Magnificent Seven”, namely Microsoft (-1.25%) and Alphabet (-6.10%), were in the spotlight, losing ground, after announcing results that were largely in line with forecasts.

“The losses in these stocks are not because the results or forecasts are bad,” explained Patrick O’Hare of Briefing.com. “This is because expectations were extremely high and these stocks were showing huge gains before their releases,” he added.

For Alphabet, investors focused on Google’s advertising revenues which came out weaker than expected. The group nevertheless generated a quarterly profit of $20.7 billion, higher than expectations.

The stock of chip manufacturer AMD also lost 3.92%, on this profit-taking movement, despite better than expected turnover and profits in line with forecasts.

These sales by the heavyweights of the NASDAQ dragged the rest of the “Magnificent Seven” down, notably Apple (1.37%), Amazon (-1.14%) and Meta (-1.08%), whose results are expected on Thursday. .

Elsewhere on the stock market, Boeing climbed 3.06%. The aircraft manufacturer announced a loss of $23 million in the fourth quarter, much less than analysts feared, on revenue of $22.02 billion.

After the torn door incident on an Alaska Airlines Boeing 737 MAX 9, which resulted in the grounding of numerous aircraft, the aircraft manufacturer decided not to make forecasts for the 2024 financial year.

The event of the day remained the outcome of the monetary meeting of the American central bank (Fed) with the press conference of its president Jerome Powell at 2:30 p.m. (Eastern time).

The market expects a new status quo on interest rates which are at their highest in 22 years between 5.25% and 5.50%.

Nothing new on this front, while the American economy showed itself to be very resilient at the end of the year.

But investors will be watching for any timetable signals for future rate cuts.

If on Tuesday, a survey by the Department of Labor (JOLTS) showed in December more than 9 million jobs available in the country, another survey on private employment on Wednesday showed a clear slowdown in hiring.

Private sector companies created 107,000 jobs in January, far fewer than expected, and down sharply compared to December, according to the monthly ADP/Stanford Lab survey.

Analysts were counting on 140,000 creations, according to the Briefing.com consensus.

Official US employment figures for January will be released on Friday. A slowdown in hiring is expected, with 175,000 job creations compared to 216,000 last month, and an unemployment rate up slightly to 3.8% instead of 3.7%.

Ten-year bond rates fell below 4% to 3.95% compared to 4.03% the day before.


reference: www.lapresse.ca

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