Wall Street finally closed lower after a good start to the session

Wall Street finally closed lower after a good start to the session

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New York (AFP) – The New York Stock Exchange, which started the session well, lost confidence on Monday and ended slightly lower at the start of a busy week with corporate results.

According to the final results, the Dow Jones index fell by 0.69% to 31,072.61 points. The Nasdaq, with strong technology colours, fell 0.81% to 11360.05 points, and the S&P 500 fell 0.84% ​​to 3,830.85 points.

The tech sector was the first of its kind mid-session after reports from Bloomberg that Apple plans to slow hiring and investment to deal with a slowing economy.

The company stopped working in the apple shortly before 6:00 PM GMT to end down 2.06% to $147.07, dragging the Nasdaq down.

Another sector dominated by fear, real estate, where the National Association of Home Builders developer confidence index fell by 12 points to 55 in July.

New homebuilders say they are pessimistic about market conditions while interest rates on thirty-year mortgages, the norm in the US, have nearly doubled in a few months to 6%.

Of the 11 sectors of Standard & Poor’s, nine closed in the red, and Information Technology and Real Estate at -1.03% and -1.08%, respectively.

The energy sector ended the lead (+1.96%) while the price of a barrel of Brent and West Texas Intermediate rose more than 5%, and the market did not receive any relief on the supply of black gold despite US President Joe Biden’s visit to the United States. The Middle East.

Peter Cardillo, an analyst at Spartan Capital, commented to AFP: “The weakness came from the technology sector. Investors are becoming cautious again. They are looking for more convincing data to ensure earnings season won’t be bad.”

He warned that “investors need more evidence that US companies are not about to achieve negative results.”

Business results test

After several big banks including Goldman Sachs (+2.54%) and Citigroup (+0.12%) surprised analysts with better-than-expected quarterly results, markets are watching Netflix, Tesla and Twitter, but also Johnson, Johnson, Lockheed Martin and United Airlines among the other things.

IBM (-1.28% at close) posted slightly better-than-expected earnings and sales in the second quarter, according to figures it announced after the market closed.

Overall, about 12% of S&P 500 companies are due to file quarterly reports this week.

Boeing, which started the session more than 3% higher after receiving a confirmed order for 100 737 Max 10 models from US airline Delta Air Lines, closed flat (-0.01% to $147.72).

Delta Air Lines jumped 3.49% to $31.14.

As for the bond market, ten-year interest rates held up very slightly to 2.96% vs. 2.93% on Friday, while investors believe to a lesser extent the Fed (Fed) rate hike on July 27, thus reducing their fears of a recession.

According to censuses based on CME futures contracts, 69% of traders now believe the central bank will raise interest rates by 0.75 percentage points compared to the middle of last week they had expected 80% to 1 percentage point.

Peter Cardillo said: “The market has already braced for a recession. It knows 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. In the field.” “The big test are the results of companies that didn’t start out too badly,” he said.

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