© Reuters. THE DOW JONES FINISHED SLIGHTLY UP, NET DECLINE IN THE NASDAQ
by Sruthi Shankar, Rama Venkat Raman and Lewis Krauskopf
NEW YORK (Reuters) – The indices on Wall Street finished the Wednesday session in order dispersed, investors are being cleared of values and high-tech in favour of the banking and other segments of the market likely to take full advantage of taxation and regulation and a lighter, higher interest rates and of the latest phases of the economic cycle.
It is as well as the Nasdaq suffered its biggest loss in more than three months in the wake of the values high tech, the sector index, the more efficient this year, lost 2.56 percent, its sharpest decline in more than five months.
Nevertheless, this sector index is up 36% this year, representing one-quarter of the 24,000 billion dollars valuation of the S&P-500, the highest percentage since the bubble “dot.com” from 2000.
The PER-compartment, high-tech is 19, whereas it is 18 for the S&P-500, according to Thomson Reuters Datastream.
The values FAANG – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet, mother house of Google (NASDAQ:GOOGLE), have lost 2.4% to 5.5%.
The index of the semiconductor of the stock Exchange of Philadelphia has abandoned 4,39% at the end of its worst session of the year. It is, however, an increase of over 40% this year.
On the contrary, the S&P financial (+1,77%) reached in a session to a peak of more than 10 years, in response to the statistics of the GDP and to the statements of Janet Yellen, the chairwoman of the federal Reserve, and Jerome Powell, who succeeded him the next year, statements which cover practically the principle of an increase in u.s. rates next month.
JPMorgan (NYSE:JPM) Chase and Bank of America (NYSE:BAC) have each gained 2.3 per cent.
The gains of the financial, industrial, and values of health have enabled the Dow Jones finished up and limit losses in the Standard & Poor’s 500, which in the end spread.
The Dow Jones has gained 103,97 points (0.44 per cent) to 23.940,68 points. The S&P-500 has yielded a 0.97 point (0.04 percent) to 2.626,07 points. The Nasdaq Composite has left 88,02 points (1.27 per cent) to 6.824,34 points.
“There’s a number of things that combine: positioning defensive with profit-taking in high-growth sectors, in particular the technological, and the rotation in sectors that are expected to resist if it was bad news on the tax reform or the debt ceiling,” said Jonathan Mackay ( Schroders (LON:SDR)).
These indices have been able to rely also on good macroeconomic news.
The growth of the u.s. economy in the third quarter was a little stronger than initially estimated, at its own pace, the highest since three years, the increase in inventory and costs of equipment of the companies compensating for the moderation in household spending.
The promises of sales of older homes rebounded in October to support a turnaround in the market after the passage of the hurricanes Harvey and Irma, but the market is still in decline, if we consider the annual data.
The market has also taken note of the latest Beige Book from the federal Reserve where one can read that the economic growth of the United States has evolved at a modest pace to moderate from October to mid-November and inflationary pressures have intensified.
Values, the action Juniper Networks has jumped almost 22% in after-Exchange, the channel CNBC has announced that the Nokia (HE:NOKIA) discussed the redemption of the automotive supplier network of the us.
Autodesk fall 16% after it announced the removal of approximately 13% of its workforce as part of a restructuring plan, and the lowering of its upper range of forecast annual new subscribers.
The departure of the founder and ceo of Chipotle Mexican Grill Steve Ells allows the title of the group of rapid restoration of gain of 5.6%.
The volume was eight billion shares traded, well above the average of 6.5 billion of the last 20 sessions.
On the foreign exchange market, the dollar has been supported, in front of a basket of reference currencies, by the statistics of u.s. GDP but the uncertainties surrounding the proposed tax reform were that it could not go far.
The dollar index was at 93,231, virtually unchanged.
The budget committee of the u.s. Senate approved Tuesday the project of reform of the taxation of the republican Party, which will therefore be presented in a plenary session.
But it is especially the bitcoin, which has caught the attention, in excess of 11,000 dollars to reach 11.395 before retirement to go back to slack, to 9.919,58.
Yellen and GDP are allies to make up most of the Treasury yields. The yields on 10-and 30-year have reached the highest in two weeks, and the 2-year-old has registered a peak of more than a week after unveiling a nine-year peak last week.
On the oil market, prices have finished falling, affected by some of the statements emanating from responsible oil.
(With Laetitia Volga, Noel Randewich, Saqib Iqbal Ahmed, Gertrude Chavez-Dreyfuss)