Wall Street hesitates, between encouraging data and uncertainty about the Fed

Traders on the New York Stock Exchange, on February 12, 2018 (Photo: Drew Angerer. Getty)

The New York stock Exchange, in the grip of a strong reluctance in the end of the session, finished in a scattered Thursday, between indicators are encouraging, and the questions on u.s. monetary policy.

Its index feature, the Dow Jones Industrial Average, has won 0,66% 24.962,48 points while the Nasdaq, in high coloring technology, has disposed of 0.11% to 7.210,09 points.

The expanded index S&P 500 has appreciated by 0.10% to 2.703,96 points.

As in the two previous meetings, the indices were down at the very end of the day, pushing the Nasdaq to finish in the red for the fourth session on.

Supported by indicators of good omen, they had clearly mounted to the opening.

On the job front, the inscriptions weekly unemployment in the United States declined unexpectedly to a level close to their lowest in 45 years.

The composite index of leading indicators in the United States, a barometer of the economy, has increased from 1% in January.

“This suggests that all sectors of the economy contribute to its dynamism and growth picks up speed,” said Peter Cardillo of First Standard Financial.

Another factor of support according to him: the decrease in yields on the bond market.

The borrowing rate of the U.s. debt to 10 years has climbed Wednesday to its highest level since 2014, in the wake of the minutes of the last meeting of the monetary policy committee of the u.s. central bank.

This document has shown that its leaders, in view of the strength of the u.s. economy, were willing to raise interest rates this year.

But “the market still asks where they are exactly in terms of the pace of this recovery,” stressed Karl Haeling of LBBW. Two, three or four rate increases in 2018? The interpretations diverge.

– “Unlikely” –

The president of the antenna of the Fed of St Louis, James Bullard, has however “a little to reassure the markets by providing more or less that the possibility of four rate increases was unlikely,” pointed out Phil Davis PSW Investment.

The bond market is in any case relaxed Thursday: the return of the Treasury bills to 10 years retreated to 21H25 GMT-2,922%, compared to 2,950% Wednesday evening, and one to 30 years 3,210% as against 3,220% the day before.

At the same time, “the market penalty to make up the Dow Jones and the S&P 500 above the moving average of the past 50 sessions, making it feverish and could explain the weakness of the end of the day, said Mr Davis.

On the front of values, the quarterly results of the energy group Chesapeake (NYSE:CHK), which benefited from the rising price of oil and gas, have propelled the title of 21,67% to 3.20 dollars.

This has contributed to the dynamism of the energy sector (+1.08% for the index of the representative in the S&P 500), also supported by the rise of a barrel of crude.

The car manufacturer Ford (NYSE:F), which announced on Wednesday the immediate departure of his boss in north America for “inappropriate behaviour”, without more precision, is mounted 0.28% 10,63 usd.

Radio online Pandora fell of 7.29% to 4,51 dollars after the publication of its results. The group’s turnover has increased more than expected, but its loss per share was more important than expected.

The group of car hire Advice, which is spent in the green in the fourth quarter and has exceeded expectations regarding its revenue, rose 13.45% to 44,20 usd.

The bank Goldman Sachs (NYSE:GS) has sold 0.75% to 261,43 dollars. According to the Wall Street Journal, the institution has raised $ 2.5 billion, to engage in venture investment, with the goal of having a seat at the table of companies who do not wish to enter immediately into the stock Exchange.

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