Wall street at lowest since August
October 4, 2019US STOCKS-Wall St eyes strong open as reports fuel trade deal hopes
October 9, 2019Wall Street finished in the green on Thursday after an indecisive start to the session, as more and more financial players expect the US Federal Reserve to lower interest rates after disappointing indicators.Its flagship index, the Dow Jones Industrial Average, gained 0.47% to 26,201.04 points.The Nasdaq, with strong technological color, gained 1.12% to 7.872,26 points and the broad index S & P 500 gained 0.80% to 2,910.63 points.The New York Stock Exchange fell sharply Thursday, shortly after the opening, the announcement of a weakening than expected growth in activity in services in the United StatesThe non-manufacturing ISM index was 52.6%, 3.8 percentage points below its August level. Analysts were betting on a better score at 55.4%.After disappointing Tuesday figures on manufacturing activity, at its 10-year low, and private sector job creation on Wednesday, financial players appeared to be worried about the slowdown in the US economy.
– Sparkling Results for Pepsi – But the main Wall Street indexes are on the rise, as more investors expect the Fed to lower interest rates to support the growth of the world’s largest economy. “Even though this week’s economic data has been negative, it has increased the likelihood of the Fed cutting interest rates,” said Peter Cardillo of Spartan Capital Securities. According to a tool from the CME brokerage platform, investors now estimate at around 90% the probability that the Fed will reduce interest rates at its next meeting at the end of October, against around 50% a week ago.Technical elements also allowed the New York Stock Exchange to rebound after two consecutive sessions of decline, says Cardillo.In the bond market, the 10-year US debt rate stood at 1.536% around 20.20 GMT, down from the previous day’s close (1.599%).
Among the values of the day, PepsiCo (+ 2.98%) progressed after reporting Thursday quarterly results above expectations thanks to the Gatorade vitamin drinks and sparkling waters.Tesla lost 4.15%. The maker of high end electric vehicles on Wednesday announced disappointing car deliveries in the third quarter. Uber rose 2.48%. The chauffeur-driven booking specialist on Wednesday launched the Uber Works app, which is currently available in Chicago for the moment, to connect agency workers with companies with one-off needs. Several retail groups, including Target (+ 1.39%), Best Buy (+ 0.98%) and Nordstrom (+ 0.94%) ended up higher, the National Federation of Retail Sales having raised its forecast for Christmas sales.