Wall Street up shy before a critical week

NEW YORK (Reuters) – The New York stock Exchange ended slightly higher Friday, in a market that is nervous before a week that will be marked by the meetings of the monetary policy of the u.s. federal Reserve and the european central Bank (ECB).

The Dow Jones has gained 75,12 points, or 0.30%, to 25.316,53. The S&P-500, wider, took 8,66 points, or 0.31 per cent, to 2.779,03. The Nasdaq Composite has advanced its side of 10,44 points (+0,14%) 7.645,51 points.

Throughout the week, the Dow rose 2.76%, the S&P of 1.62% and the Nasdaq 1.21%.

The major indices declined in the session, affected by the decline in Apple (NASDAQ:AAPL) (-0,91% to 191,70 dollar after touching a low of 189,77) following reports that the group of Cupertino has warned suppliers to prepare for from the second half to a 20% decrease in orders for components for its new iPhone in anticipation of a slowdown in sales. The semiconductor manufacturer Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO) have lost respectively 0,63%, 1.48% and 2.54 per cent.

According to some stakeholders, the growth is also favored by a withdrawal of the emerging markets most vulnerable to oil prices and trade tensions.

“Investors are leaving emerging markets and returning to the us stock markets (…). After the downward movement of yesterday, some see it as perhaps an opportunity to purchase,” adds Ronen Schwartzman (Ten Capital Advisors).

The caution on the global is reinforced by the expectations of difficult discussions at the G7 summit, which opened Friday in Canada, where one of the main topics will be the establishment of customs duties on certain products between the United States and its major partners.

“The G7 summit, combined with other major events, such as a meeting between Trump and Kim Jong-un next week, will keep investors on alert”, told of his side Constantin Bolz, fund manager at Portfolio Concept.

Some analysts and traders noted, however, that the hope of obtaining advances during this summit the G7 is already at the lowest on account of the protectionist policy of Donald Trump.

In terms of monetary policy, the Fed is expected to meet next Wednesday its key interest rates for the second time this year and investors will wait to see if it suggests that there will be four hikes in all by 2018.

“The news flow will be huge next week, with the Fed meeting and the summit with North Korea, and there are probably a few adjustments to positions ahead of the weekend,” noted Mark Heppenstall in Penn Mutual Asset Management.

To individual values, Philip Morris (NYSE:PM) has taken on 2,62%, after having risen 6.5% dividend of 1.14 usd/share.

Monster Beverage jumped 5.02% to following the announcement by the producer of energy drinks that it was “very likely” that it is increasing its prices later in the year.

(Ankur Banerjee and Parikshit Mishra, Juliette Rouillon for the French service)