Energy has supported the Dow, the Nasdaq leaded by the high techs


by Medha Singh and Chuck Mikolajczak

NEW YORK (Reuters) – Wall Street has ended in a disorganized manner in the last session of the week, the lower values to high-tech, which has resulted in the Nasdaq index, has restricted the gains induced by the agreement of increase of the Opec production, gains which were, however, allowed the Dow Jones to put an end to a series of eight setbacks in a row.

A commercial litigation that never ends between the United States, China and Europe has helped him also to restrain the enthusiasms of the investors.

The american president Donald Trump has threatened Friday to introduce a customs duty of 20% on all of the cars assembled in Europe and imported to the United States, one month after the opening of an investigation intended to determine if those imports threaten national security.

A few days ago, Donald Trump threatened to impose customs duties of 10% on 200 billion dollars (170 billion euros) of chinese products, which immediately react to Beijing, which referred to measures “quantitative” and “qualitative” if the u.s. government put his threat to execution.

The bisbilles trade between Washington and Beijing have sent the Dow through the bottom during the past eight weeks, leaded by large industry such as Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), poorly placed to withstand a commercial atmosphere is becoming deleterious.

Wall Street, however, has gone back to colors, thanks to Opec and its agreement to a modest recovery of the production from July, but this arrangement, which does not have precise figures, will probably not be enough to offset the drop in expected exports from Venezuela and Iran.

“Now is the time for caution for investors (…) this context, unstable, restless and nervous on the day-to-day will be the norm until things subside a little bit,” said Andre Bakhos (New Vines Capital).

The Dow Jones has gained 119,19 points, or 0.49 per cent, to 24.580,89 points. The S&P-500 took the 5.12 points (0.19 per cent) to 2.754,88 points. The Nasdaq Composite gave 20,14 points (0.26 per cent) to 7.692,82 points.

Throughout the week, the Dow lost 2%, the S&P-500 0.9% and the Nasdaq Composite 0.7 percent.

In the compartment of energy, Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) have earned and, respectively, 2.12 per cent and 2.05 per cent, pushing the sectoral index up with a gain of 2.20%, the highest of the day.

Among the values high techs that have suffered, there is Red Hat (NYSE:RHT), leader in the distribution of the Linux OS, whose share dropped of 14.23%, its forecast for the second quarter and the full year were found below those of Wall Street.

This Friday was probably the day Trading the most active of the year as the rebalancing of the Russell indexes took effect at the close of the session. The recomposition of the indices Russell 1000 (large-cap) and Russell 2000 (small cap) occurs every year on the fourth Friday of June, which obliges the managers to readjust their portfolios to incorporate the new weightings.

The fund liabilities rééquilibreront on the day of reconstitution to minimize errors of “tracking”, while the active funds seek to take advantage of the slightest deviation from course, which leads to a sudden swelling of the volumes in the latest exchanges.

At 31 December, the products of the Russell indexes represented an outstanding of 9,000 billion, according to FTSE, Russell. Of this total, the products of passive investment such as index funds (ETF) and the FCP represent around 1,200 billion dollars.

The volume was 9.70 billion shares traded compared with an average $ 7.17 billion on the last 20 sessions.

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