(New York) The New York Stock Exchange, which had started the session well, lost confidence on Monday and ended down slightly at the start of a busy week in corporate results.
Updated yesterday at 4:10 p.m.
According to final results, the Dow Jones index fell 0.69% to 31,072.61 points. The tech-heavy NASDAQ fell 0.81% to 11,360.05 points and the S&P 500 fell 0.84% to 3,830.85 points.
It was the tech sector that veered first mid-session after reports from Bloomberg that Apple plans to slow hiring and investment to deal with a decelerating economy.
The action of the firm at the apple stalled shortly before 6 p.m. GMT to end down 2.06% to 147.07 dollars, dragging the NASDAQ in stride.
Another sector gripped by fear, real estate, as the National Association of Home Builders’ Developer Confidence Index plunged a record 12 points to 55 in July.
Builders of new homes say they are pessimistic about market conditions while interest rates on thirty-year mortgages, the benchmark in the United States, have almost doubled in a few months to approach 6%.
Of the eleven S&P sectors, nine ended in the red, information technology and real estate neck and neck at -1.03% and -1.08% respectively.
The energy sector finished in the lead (+1.96%) as the price of a barrel of Brent and West Texas Intermediate rose by more than 5%, the market receiving no relief on the supply of black gold despite US President Joe Biden’s visit to the Middle East.
“The weakness came from the technology sector. Investors are becoming cautious again. They are on the lookout for more convincing data to ensure that the earnings season is not going to be bad, “commented for AFP Peter Cardillo, analyst at Spartan Capital.
“Investors need more proof that American companies are not about to generate negative results,” he warned.
The business results test
After several large banks including Goldman Sachs (+2.54%) and Citigroup (+0.12%) which surprised analysts with better than expected quarterly results, the markets are watching Netflix, Tesla, Twitter, but also Johnson and Johnson, Lockheed Martin and United Airlines among others.
IBM (-1.28% at the close) posted slightly better-than-expected profits and sales in the second quarter, according to its figures announced after the market closed.
In all, some 12% of S&P 500 companies are due to report quarterly this week.
Boeing, which started the session up more than 3% after taking a firm order for 100 models of the 737 MAX 10 from the American airline Delta Air Lines, ended stable (-0.01% to 147.72 dollars) .
Delta Air Lines jumped 3.49% to $31.14.
On the bond market side, ten-year rates held up very slightly to 2.96% against 2.93% on Friday, as investors believe less in a sharper rate hike from the Federal Reserve (Fed) on July 27 and therefore have fewer fears of recession.
According to CME Group’s futures-based counts, 69% of traders now believe the Central Bank will raise rates by 0.75 percentage points compared to mid-last week they were expecting at 80% to a screw turn of one percentage point.
“The market has already priced in a recession. He knows that the Fed will raise rates by 75 basis points next week. This week, it will be the European Central Bank that will start raising rates. All this is already in place,” said Peter Cardillo. “The big test is the results of companies that have not started too badly,” he said.
The Toronto Stock Exchange closes up more than 200 points
A broad recovery fueled by the energy sector allowed the Toronto Stock Exchange to close higher on Monday.
Craig Fehr, investment strategist at Edward Jones, pointed out that the TSX had performed better thanks to what largely fueled the index for much of the year: energy and materials.
“The move we see could be just a bit of a relief rally, particularly in oil. I think gold could probably still be a safe haven asset for investors looking to reduce risk,” he said in an interview.
Crude oil prices have come down a lot lately, so expect periodic rebounds, Fehr warned.
“So I would probably characterize it more as just the markets stabilizing things after what has been a pretty sharp downward move in crude oil prices. »
In the currency market, the Canadian dollar traded at an average rate of 77.23 cents US, up from 76.70 cents US on Friday.
Toronto’s health care sector advanced 2.0% as shares of Canopy Growth jumped 15.5%, while the information technology sector was helped by a 3.8% gain in Shopify. The financials sector rose, supported by increases in the securities of all the major banks, notably that of Laurentian Bank, which gained 2.2%.
The Consumer Staples and Utilities groups were the only decliners on Monday.
The Canadian Press