© Reuters. WALL STREET DRAGGED DOWN BY THE “TECHS”
by Sinéad Carew
NEW YORK (Reuters) – The New York stock Exchange ended Thursday in a scattered, torn between the increases in oil and Mcdonald’s, who have supported the Dow Jones, and the decline of the technology stocks, which has further penalized the S&P-500 and especially the Nasdaq.
The Dow Jones has gained 95,02 points (+0,38%), 25.241,41. The Standard & Poor’s 500, wider and main reference of the investors ended without great change with a decline of 1.98 point (-0,07%), 2.770,37. The Nasdaq Composite, technology-intensive, has lost 54,173 points, or 0.7%, 7.635,07.
“The market is just a little tired”, said Ken Polcari, O’neil Securities. “It can’t go up every day without suffering withdrawal. The logic is that he must have need of rest.”
The caution seems in addition to updating the eve of a G7 summit that could trigger a new flare-up of fever on the forehead of trade between the United States and other member countries.
The american president Donald Trump should not deviate from his line after having imposed customs duties on aluminium and steel, particularly from Canada, the host of this summit, and the european Union. Canada has already responded to these customs duties and the EU announced that it would.
“There is the caution associated with this top of the G7 as they are historically neutral for the market. This G7 summit is not responding to the usual model particularly due to the trade,” said Quincy Krosby, responsible for the market strategy of Prudential Financial (LON:PRU).
“Well there are the meetings of the european central Bank and the federal Reserve next week. Both are of capital importance for the market direction”, he added.
QUALCOMM DRAWS ITS PIN FROM THE GAME
Investors expect that the Fed raises rates for the second time of the year on Wednesday. They will be especially attentive to any sign suggesting it could perform four rate hikes at all in 2018, while she anticipates officially three for the moment.
The ECB for its part should discuss the judgment, by the end of the year, its programme of asset purchases.
After a series of six sessions, an increase that has brought to records, the index’s technology sector fell 1.09%, the worst sectoral performance of the day, with decreases of 1.65% for Facebook (NASDAQ:FB), of 1.57% for Microsoft (NASDAQ:MSFT), or 1.09% to Alphabet.
The sector as a whole, however, has not suffered, and Qualcomm (NASDAQ:QCOM) has distinguished itself with an increase of 1.34% in the wake of the announcement by Washington of an agreement with ZTE which will help us chip makers to provide again to the group of chinese telecom equipment and smartphones.
The energy sector was the strongest performer (+1.58 percent) by taking advantage of the sharp rise in oil prices, with a barrel of crude to u.s. increase of almost 2%. Chevron (NYSE:CVX) has gained 2.9 per cent, which is the main support of the S&P-500, and Exxon Mobil (NYSE:XOM) 1%.
The title Mcdonald’s, which finished with a gain of 4.37%, has contributed to more than half of the increase in points in the Dow Jones following a information from the Wall Street Journal, according to which the giant of the fast food includes a number of new job losses.
(With Sruthi Shankar in Bangalore; Bertrand Boucey for the French service)