The New York stock Exchange ended in the red Monday, following a meeting very hesitant, investors are not able to bounce quite frankly indices strongly shaken during the course of the previous sessions.
The index feature of the place in new york, the Dow Jones Industrial Average, fell 0.35 per cent, to 25.250,55 points.
The Nasdaq, in high coloring technology, has dropped from 0.88% to 7.430,74 points.
The expanded index S&P 500 lost 0.59% to 2.750,79 points.
Weakened by the sudden rise of interest rates in the United States and despite a sharp rebound on Friday, the indices on Wall Street had recorded the last week of their most serious fall weekly since march, the Dow Jones dropping of 4.19% and the Nasdaq 3,74%.
On Monday, several factors were still of a nature to weigh on the market, such as the persistence of trade tensions between Washington and Beijing, or the rise of geopolitical tensions between the United States and saudi Arabia after the disappearance in Turkey of the journalist saudi Jamal Khashoggi.
The publication of an indicator-disappointing retail sales in the United States, which have less progress than expected in September, has also been able to play, according to Peter Cardillo Spartan Capital Securities.
But the market seeks, according to him, “to see how far it can go down before going back up.”
The downturn in the indices is a “correction rather technical”, added Alan Skrainka of Cornerstone Wealth Management. Investors are particularly sensitive to the fact that the S&P 500 remained Monday under its average for the last 200 days.
For both analysts, the trend could reverse very quickly as of the publication of corporate results.
– Bankruptcy of Sears –
The analysts of Goldman Sachs believe that the New York stock Exchange and should not decline a lot because the fundamentals guiding the stock prices are solid”. Others warn against a potential new slip.
On Monday, Bank of America has reported a surge in its profit in the third quarter and finished despite everything, down 1.90%. As JPMorgan Chase after better than expected results on Friday, the action was dropped “without special explanation,” according to Peter Cardillo.
Other big names of Wall Street will make their quarterly accounts this week, including Goldman Sachs, Morgan Stanley and Netflix on Tuesday.
Among the other values of the day, the retail giant Sears Holdings has been declared bankrupt. The action of the group was found to have collapsed these past few days so that the body the speculation and has completed at 31 cents on Monday.
Harris and L3 Technologies, two companies specialized in the communications and defense electronics, have jumped, respectively, 11.87% and 12,84% after it announced a merger.
The bond market visibly relax a little on Monday: the yield of us Treasury bills to 10 years evolved into 20H40 GMT to 3,156% against 3,161% at the end of Friday. The 30-year stood at 3,333%, compared to 3,335% at the end of last week.
The brokers of Wall Street still shaken by the recent rise in interest rates, which could rein in mortgages and consumption and the investment spending of businesses and in turn slow down the growth of the world.
In this respect they scruteront Wednesday the publication of the minutes of the last meeting of the monetary policy Committee of the u.s. central bank, on the lookout for any signal on the future decisions of the institution.