Wall Street is driven by numbers solid on the american economy


Traders at the New York stock Exchange, may 29, 2018 (Photo Bryan R. Smith. AFP)

Wall Street finished in the green on Friday in favor of encouraging figures on the us economy, on employment, in particular, who eclipsed the fears of trade war opened.

Its index feature, the Dow Jones Industrial Average, has gained 0.90% to 24.635,21 points.

The Nasdaq, in high coloring technology, has risen from 1.51% to 7.554,33 points.

The expanded index S&P 500 climbed 1.08% to 2.734,62 points.

On the week, the Dow Jones has lost 0,48%, while the Nasdaq has taken 1,62% and the S&P 500 was 0.49%.

“Beyond the relief on the situation in Italy, which will a priori not face new elections, the market (has responded to Friday) to the data better than expected” on the u.s. economy, ” said Karl Haeling of LBBW.

In may, the United States has created a 223,000 jobs, or more than expected, the unemployment rate has fallen to its lowest level in 18 years, and the average hourly wage increased by 2.7%.

The construction expenses have also increased dramatically in April and economic activity in the Chicago region is rising in may to its best level since the beginning of the year.

“If some still doubted the possibility that the federal Reserve raises its rates in June, they should be convinced,” noted Christopher Low, chief economist for FTN Financial.

The prospect of a rate hike from the u.s. central bank is shaking sometimes investors as this adds to the cost of the credit.

But the reaction of the market is, according to Mr. Low remained in positive territory Friday as the brokers of Wall Street have already largely incorporated the idea of a rise in rates at the next central bank meeting in two weeks.

The strength of the statistics released Friday, allows in any case “to investors that growth is expected to continue to be strong despite all the trade tensions that develop,” said Mr Haeling.

Following the confirmation of new taxes on imports of steel and aluminum from the european Union, Canada, and Mexico, the us president, Donald Trump has contorted a little more of its trading partners, suggesting separate agreements with Canada and Mexico to replace the treaty of free trade in north america (Nafta) between the three countries since 1994.

The Europeans have also launched Friday, their first response to the WTO.

– Tweet from Trump –

“The market is really trying to navigate between the announcements of Trump and all of the speculation on interest rates,” said Maris Ogg, of Tower Bridge Advisors.

On a background of solid growth in the United States, investors react according to it piecemeal to the latest headlines. “As long as we don’t know more about the outcome of the parliamentary elections of mid-term (in November) it will be difficult to determine what direction will the market”, she estimated.

Writing on Twitter (NYSE:TWTR) in a little over an hour before the release of the report “looking forward to see the employment figures at 08: 30 this morning”, the us president, Donald Trump has in any case aroused the emotion.

These figures, scrutinized closely by the market, are subject to a strict embargo and implying that they were going to be good, the tenant of the White House has broken with a well-established tradition according to which the administration refrains from any comment before the release of the report.

Among the values of the day, the manufacturer of sports clothing Lululemon flew by 16,32% after the dissemination of quarterly results above expectations.

Figures of the chain of stores Abercrombie & Fitch, however, were disappointed (-8,72%).

The retail giant’s wholesale, Costco has lost 0.56 per cent despite better than anticipated. Its margins were slightly lower due in particular to lower prices and higher transport costs.

The bond market is a little tense: the yield on the u.s. debt to 10 years amounted to 20H35 GMT to 2,897%, as against 2,859% Thursday evening, and those on the right for 30-year 3,045%, compared to 3,025% the day before.

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