Wall Street opens lower due to lack of conviction

(New York) The New York Stock Exchange opened lower on Wednesday, marked by a lack of conviction in a week poor in macroeconomic indicators, conducive to consolidation.




Around 9:55 a.m. ET, the Dow Jones was near breakeven (-0.01%), the NASDAQ index was down 0.36% and the broader S&P 500 index was down 0. 17%.

“The market is in a waiting position,” according to Adam Sarhan of 50 Park Investments.

After last week’s surge, fueled by the moderate speech of the American central bank (Fed) as well as the slowdown in the job market, Wall Street “hit a wall” on Tuesday, materialized by a technical threshold, in 5200 points for the S&P 500, according to Patrick O’Hare of Briefing.com

“This does not mean that there is a rush of selling, rather that the buying current has been exhausted,” added the analyst, in a note. Adam Sarhan thus recalls that the major indices remain close to the historic peaks reached earlier this year.

“The market is waiting for a new catalyst,” he explains. “He thought it would come from corporate results, but so far they have been lackluster, particularly for growth stocks,” which include the technology sector.

Tuesday after the stock market and Wednesday before the opening of the New York market, a series of publications disappointed, reinforcing general circumspection.

The electric vehicle manufacturer Rivian sank (-7.32%) after the publication of a quarterly loss heavier than expected by analysts, even if turnover increased more than expected (+82%) .

According to the Taiwanese news site DigiTimes, Rivian is in discussions with Apple with a view to a possible partnership.

Rivian’s competitor, Tesla, also fell (-2.45%), after the announcement on Tuesday of an 18% drop in its sales in China in April compared to the same period last year. .

Another stock in difficulty, Uber (-5.91%), which published a loss greater than projected by the market, due, essentially, to depreciation of participations, unrelated to the group’s activity.

The turnover forecast for the current quarter also appeared moderate compared to that of analysts.

Wall Street was even more focused on the online commerce platform Shopify (-19.31%), whose results were nevertheless higher than the expectations of the FactSet consensus but which published a loss and announced to expect a deterioration in its margins for the current quarter.

Even worse off, the hotel reservation platform Tripadvisor lost 30.57%. The group reported a greater loss than the operators anticipated and indicated that the committee responsible for identifying a possible buyer had failed.

No major indicator was on the program on Wednesday or Thursday, depriving the New York stock market of news, which was not helped, moreover, by the rise in bond rates.

The yield on 10-year US government bonds stood at 4.48%, compared to 4.45% the day before at the close.

Elsewhere on the stock market, the consumer credit group Affirm, which allows consumers to pay for their purchases in installments, fell by 1.89%, despite better than expected accounts and forecasts.

After its first publication since its IPO at the end of March, the social network Reddit stood out (+5.93%), the turnover having surprised favorably, even if the losses widened and reached more than double the revenues. .

Taking the opposite view of its rival Uber, Lyft did well (+9.56%), after having exceeded expectations and announced more ambitious forecasts than expected, driven by strong demand.


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