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Wall Street down, without conviction

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(New York) The New York Stock Exchange retreated again shortly after opening on Tuesday, on a private market of macro or microeconomic news, which lacks conviction to continue the rebound that began in mid-October.

Around 9:55 am (Eastern time), the Dow Jones lost 0.14%, the NASDAQ index yielded 0.83% and the S&P 500 index 0.45%.

The day is shaping up to be particularly quiet, with October’s only lower-than-expected US trade deficit as a macro indicator and no major corporate releases expected.

“We had a sell-off yesterday and today the market is consolidating. He is waiting,” observed Karl Haeling of LBBW.

Among the few events announced this week are the PPI Producer Price Index and the University of Michigan Consumer Sentiment Survey, both released on Friday.

“But everything will be played out next week”, announces Karl Haeling, with the CPI consumer price index on Tuesday, the decision of the American central bank (Fed) on Wednesday, and the meeting of the European Central Bank ( ECB) and the Bank of England on Thursday.

“It’s the Super Bowl! “, joked the analyst, in reference to the final of the American football championship NFL, sporting and television event of the year in the United States.

By then, warned Karl Haeling, the most exposed operators could decide to rebalance their positions, which would maintain the volume of trade, but limit variations.

“I think the market is already done with its ascent, in anticipation of what the Fed might do,” which is to decelerate its monetary tightening, according to Andy Kapyrin of Regent Atlantic.

Since mid-October, the S&P 500 is, in fact, up almost 14%, while the Dow Jones has gained more than 18%.

“The market celebrated Christmas in November this year,” says Andy Kapyrin.

For Patrick O’Hare of Briefing.com, the lack of a rebound after Monday’s sharp decline can also be explained by investors’ apprehension that the Fed “will go too far in its tightening and cause an ebb of the economy more marked” than anticipated.

After a brutal tension on Monday, the bond market calmed down. The yield on 10-year government bonds stood at 3.57%, like the day before closing.

Meta was battered (-4.87% to 116.46 dollars), as the European Personal Data Protection Board (EDPB) prepares to issue a decision next Monday against the group for its targeted advertising practices , which could result in a hefty fine.

Tesla (-3.03% to 176.92 dollars) continued to suffer from press reports that the manufacturer will reduce its production of vehicles in China, to cope with stagnant demand. The American manufacturer did not take advantage of the announcement of record sales in this same Chinese market in November.

The Royal Caribbean cruise line (-2.54% to 57.91 dollars) took the water after a lowering of the recommendation of analysts at JPMorgan Chase, who see the operator more exposed than its competitors to economic conditions.

While the turmoil of the bankruptcy of the FTX platform continues to agitate the universe of cryptocurrencies, Silvergate Capital, a small Californian regional bank that has become a major player in the sector, was overdue (-4.62% to 23.12 dollars).

The establishment was the custodian of part of the sums placed on FTX but had not lent money to the platform.



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