Wall Street ends lower, oil weighs


© Reuters. WALL STREET ENDS DOWN

by April Joyner and Sruthi Shankar

(Reuters) – The New York stock Exchange gave up its gains during the trading session to finish in the red Monday, weighed down by the values of health and the fears of investors to see business costs climb, on a background of rising oil prices.

The Dow Jones has lost 148,04 points, or 0.61%, to 24.163,15.

The Standard & Poor’s 500, wider, fell by 21,86 points, or 0.82%, 2.648,05.

For its part, the Nasdaq Composite, technology-intensive, sold 53,53 points, or 0.75% to 7.066,27, Apple (NASDAQ:AAPL) losing more than 1.8%.

On the month, the three major indices the New York stock Exchange have increased for the first time since January. The Dow has a price of 0.25%, the S&P-500 0.27% and the Nasdaq up a modest 0.04 percent.

The price of oil is ironed in the green after the declarations of israeli Prime minister Benjamin Netanyahu claiming that Iran had lied” after having signed the agreement on the nuclear in July 2015.

The american president Donald Trump will decide by may 12 whether it is appropriate to restore the economic sanctions by the united states against the islamic Republic.

The price of black gold reached their highest level since the end of 2014, supported by fears of disruption to iranian exports.

Even if the quarterly results are strong, some companies have warned that rising commodity prices could weigh on margins in the months to come.

Some investors have suggested that good numbers were not enough to carry the market higher.

“The profits are in the courses,” says Robert Phipps, director at Per Stirling Capital Management.

THE 11 COMPARTMENTS IN THE S&P-500 IN THE RED

The 11 sectors in the S&P-500 ended in the red. If the energy sector has recorded the decline in the more modest (-0,04%), at the other end of the spectrum, the telecoms-which include only three values – have dropped to 2.66%. Largest drop in the Dow, Verizon (NYSE:VZ) has lost 4.3 per cent.

The compartment of the techs has lost 0.51 per cent.

Mcdonald’s has awarded 5,7738%, the best performance in the Dow. The giant of fast food restaurants has reported a stronger than expected rise in its quarterly sales at restaurants constant, thanks in particular to its performance in the United Kingdom and Germany.

Conversely, Allergan, which had opened up, has finally dropped from 5.18%, despite a quarterly profit above expectations. Investors are focused on the strategic review initiated by the american laboratory.

Celgene has lost 4.47 percent. Morgan Stanley (NYSE:MS) has said to expect a delay of up to three years for its main drug against multiple sclerosis.

In their wake, the compartment of health has declined 1.56%, showing the highest second-largest decline in the sector.

Arconic has dropped more than 20%, the manufacturer of aluminium products, having greatly reduced its forecasts 2018.

Mergers and acquisitions have also facilitated the rating.

Sprint has abandoned 13,69% in the aftermath of the announcement of its acquisition by T-Mobile US (NASDAQ:TMUS) (-6,21%), investors are worrying obstacles to the part of the regulators to the merger of these two mobile operators.

Andeavor has jumped by more than 13% after the announcement of its acquisition for more than $ 23 billion (19 billion euros) by Marathon Petroleum (-8%), an operation that will give birth to the first refiner in u.s. in terms of capacity.

Walmart (NYSE:WMT) has taken a 1.34%. Asda, its british subsidiary, and Sainsbury’s have entered into a merger agreement of $ 13.3 billion pounds (10.9 billion euros) to create the first chain of supermarkets in uk by market share.

INDEX PCE CORE” MEETS EXPECTATIONS

On the front the macro-economy, investors have taken notice of an acceleration of the rise in consumer prices in the month of march in the United States, underlying inflation is climbing just near the target of 2%, the federal Reserve.

Excluding food and energy, the index for PCE says “core” has posted an annual growth of 1.9% in march, as expected, the highest since February of 2017, after +1.6% in February.

As to the spending of households, rose 0.4% in march, after being unchanged in February.

Household incomes have risen by 0.3% in march, an increase identical to that of February.

The federal Reserve is not expected to change its interest rate at the end of its monetary policy meeting on Tuesday and Wednesday, but investors will be looking for any hint on inflation or on pace to raise rates.

(Catherine Mallebay-Vacqueur for the French service)

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