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Wall Street starts the first session of the year up, then slips into the red

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(New York) The New York Stock Exchange, which started the session higher to start the year 2023, slipped slightly into the red after a long weekend and a lackluster week of weak trading that ended a bad year for equities.

The Dow Jones index yielded 0.21%, the NASDAQ 0.16% and the S&P 500 0.10% around 10 a.m. (Eastern time).

The indices ended the week down 0.17% for the Dow Jones, 0.14% for the S&P 500 and 0.3% for the NASDAQ. The year 2022, meanwhile, was the worst since 2008: the Dow Jones fell by almost 9%, the S&P 500 by almost 19% and the NASDAQ, where many technology stocks are concentrated, fell by 33%.

“Let’s hope that 2022 is over for the stock market, which had its worst year since 2008; like the bond market,” said Patrick O’Hare of Briefing.com.

Bond yields on 10-year bills fell to 3.73% after ending the year at 3.87%, in the wake of the Fed’s rate hikes. They had started 2022 at 1.63%.

“For the moment, things seem better, without really substantive reasons,” he said, but he noted Tuesday “an activity motivated by the hunt for bargains”.

For Art Hogan, 2023 is still likely to be “bumpy, at least the first few months”. The B. Riley Wealth Management analyst believes that “weaker economic trends will play out” leading to a mild recession.

“We believe the Fed is overestimating the potential duration of inflation and underestimating the underlying strength of the economy,” which he said could lead to overly tight monetary policy that will restrict economic activity. .

This week, investors will be watching the minutes of the last monetary meeting of the American central bank (Fed) which will be published on Wednesday and especially the official labor market figures for December on Friday.

Analysts forecast 210,000 job creations after 265,000 in November and a stable unemployment rate at 3.7%, according to the consensus of Briefing.com.

Listed, Tesla was on the decline again (-6.05% to $115.73 at 9:40 a.m. EST) after plunging 65% last year. The electric vehicle maker announced disappointing deliveries for the year as a whole on Monday.

The brand delivered 1.31 million electric vehicles in 2022, which is a record and a 40% year-on-year jump, but remains below its own forecasts and Wall Street expectations.

“Fourth-quarter figures missed target due to continued logistics issues, demand concerns and increased competition from other manufacturers,” Schwab analysts said.

The electronic payment group PayPal climbed 3.66% to 73.83 dollars after a good note from banking analysts which motivated investors looking for bargains.

The title of the operator of casinos Wynn Resorts gained almost 3% also benefiting from a favorable note from banking analysts optimistic on the activity with the reopening of Macau.

The dollar gained 0.80% against the euro. Energy sector stocks lost ground (-0.66%) as oil prices retreated.



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