(New York) The New York Stock Exchange was moving down on Monday, halted in its momentum of last week, for lack of support, technical or fundamental.
Posted at 9:39
Around 10:15 a.m., the Dow Jones dropped 0.21%, the NASDAQ index, dominated by technology stocks, lost 0.70%, and the broader S&P 500 index yielded 0.33%.
The latter had racked up four gains in five sessions and has regained more than 7% since its mid-June low.
“The question is whether the market can overshadow deteriorating fundamentals, with higher rates, persistently high inflation and slowing growth,” said Patrick O’Hare of Briefing.com in a rating.
“It was able to move forward with blinders on last week because it had dipped below several technical thresholds,” he continued, “but it may encounter resistance” on the upside.
The analyst fears in particular the downward revision of company forecasts during the results season, which will really start in mid-July.
This week, the sports equipment manufacturer Nike (Monday), the food group General Mills (Wednesday), or the network of pharmacies and drugstores Walgreems Boots Alliance (Thursday) should give some indications on the subject.
For Karl Haeling, of LBBW, Wall Street could benefit from portfolio reshuffles, usual during the last days of a quarter and a half-year.
He sees these moves benefiting equities, to the detriment of bonds, although they should also contribute to market volatility.
In fact, the bond market retreated slightly. The yield on 10-year US government bonds, which moves in the opposite direction to their price, rose to 3.16% from 3.12% on Friday.
Investors will follow the echoes of the forum of the European Central Bank (ECB), which brings together in Portugal several of the main central bankers of the world, in particular Christine Lagarde (ECB) and Jerome Powell, president of the American central bank (Fed).
Moreover, several members of the Fed must speak publicly during the week.
The New York market is also expecting some macroeconomic indicators later this week, mainly the consumer confidence index on Tuesday and the PCE price index, closely followed by the Fed on Thursday.
“It should be a quiet week”, anticipates Karl Haeling, in view of the long holiday weekend of July 4 [fête nationale, NDLR]which should limit trading at the end of the week.
On the odds, the health and energy sectors were doing well, while technology and growth stocks were gray, such as Nvidia (-2.46%), Netflix (-3 .71%) and Airbnb (-3.61%).
Investors were fleeing Digital World Acquisition Corp (-9.85% to 25.08 dollars), the listed vehicle which is to merge with Donald Trump’s new media group. The company said Monday that the transaction was under investigation by federal authorities.
The company Spirit Airlines fell back (-8.24% to 22.50 dollars) after the recommendation of a major consulting firm Institutional Shareholder Services (ISS) to shareholders to vote, Thursday, in favor of the acquisition by the competitor Frontier ( -9.25%).
The latter’s offer, even raised on Friday, is significantly lower than that of JetBlue (+0.75%) which, moreover, is entirely in cash, while that of Frontier is mainly in shares.
The AMC cinema chain advanced (+ 2.73% to 12.81 dollars), after a weekend which saw the film Elvis do better than expected at the box office, matching Top Gun: Maverickwhich crossed the billion dollar mark worldwide.