The New York Stock Exchange finished sluggish Tuesday, slipping slightly into the red at the end of the session despite rather positive corporate results.
According to final results, the Dow Jones index lost 0.07% to 30,937.04 points as well as the Nasdaq to 13,626.06 points. The S&P 500, which in session had reached a few points a new record, demoted at the close to finish at 3,849.62 points (-0.15%).
The market remained cautious throughout the session after a more sustained opening, digesting a salvo of results and awaiting the outcome of the monetary meeting of the Central Bank (Fed) on Wednesday.
Investors will be watching President Jerome Powell’s speech for the first time this year.
“We don’t expect anything dramatic,” says JJ Kinahan of Ameritrade.
“It would be shocking for the Fed to say something other than what it has already said, namely to remain accommodating so that the economy can recover,” continues the analyst.
But, he warns, “it’s the Fed, so you should pay attention to it and listen in particular to what they are going to say about possible inflation.”
The mini-tornado GameStop, which affects the titles of the chain of video game stores yet in difficulty, for its part continued to swell.
The betting battle between investors who had bet on a drop in the stock and stock marketers who defend it, blew up the action for the 4th session in a row. Gamestop finished at 146.88 dollars against 76.79 dollars the day before (+ 91.27%).
– GameStop, the surge continues –
This surge, caused by the speculative practice of short selling, has increased the capitalization of the chain of stores to the economic model yet outdated, according to analysts.
Some analysts have expressed concern, pointing out, like Peter Cardillo of Spartan Capital Markets, “this frenzy around a handful of stocks targeted by short positions”.
“It is fundamentally a very dangerous sign for the market”, estimated the expert. “It could go wrong and bring down the rest of the market.”
While Wall Street has reacted little to a salvo of good results and the momentum of the Dow Jones weakens, it seems, according to Peter Cardillo, that the market has already taken in all the good news.
“The prices have already taken into account the results season, they have taken into account the prospect of a new stimulus and they have even taken into account a future economic rebound!”, Indicates the expert. “What remains to be taken into account?”, He warns, estimating that the market is ripe “for a decline”.
Among the titles of the day, Johnson and Johnson (+ 2.71%), General Electric (+ 2.46%), the defense group Raytheon (+ 1.39%) and 3M (+ 3.29%) saw their results well received. American Express, which suffered from lower white-collar spending, lost more than 4%.
Microsoft, which finished up 1.22% just before announcing strong quarterly revenue growth, climbed 6% in electronic trading after the closing bell.