The New York Stock Exchange started hesitantly, slightly in the red on Thursday, after a solid session the day before, pending US employment figures on Friday.
The Dow Jones yielded 0.22%, the Nasdaq gleaned 0.09%, the S&P 500 was down 0.19%.
On Wednesday, thanks to better than expected indicators and company results, the Dow Jones index gained 1.29% to 32,812.50 points. The tech-heavy Nasdaq jumped 2.59% to 12,668.16 points and the S&P 500 jumped 1.56% to 4,155.17 points.
“The exchanges are on the reserve”, commented Patrick O’Hare while hovering the shadow “of the specter of the employment report for July which will be published on Friday”.
“If the market wants to stay on its momentum longer” from Wednesday “it will want to see less hiring and a moderation in earnings growth because this combination would then support the scenario of a Fed pivoting towards fewer rate hikes in 2023 “explained the analyst.
Investors will be watching Fed member Loretta Mester on the Cleveland branch midday after multiple statements from central bankers in recent days explaining that the Federal Reserve was “far” from it. finished with its monetary tightening to control inflation.
For its part, the Bank of England announced a rate hike of half a percentage point, a drastic measure to counter the accelerating rise in prices. This steep hike was not lost on investors, according to analysts at Schwab.
“This is the biggest rate hike in 27 years and the BoE has warned of a possible prolonged recession,” they said.
– Signs of slowed demand –
Among the indicators, the US Department of Commerce announced a further sharper-than-expected reduction in the trade deficit in June. Imports fell 0.3% on weaker demand from US consumers and businesses.
“Overall, the outlook for global growth is darkening: the strong dollar and weaker domestic demand will have implications for trade flows going forward,” warned Rubeela Farooqi, economist for HFE.
Weekly jobless claims rose a little to 260,000 (+6,000) last week, perhaps a harbinger that the US job market is slowly shrinking, noted Nancy Vanden Houten of Oxford Economics.
For official employment figures in July, analysts expect Friday the announcement of 250,000 job creations against 372,000 in June and an unemployment rate stable at 3.6%.
On the commodity market, oil fell again, after a sharp decline the day before, while US demand for gasoline fell.
On the rating, the American pharmaceutical company Eli Lilly dropped 2.25% to 306 dollars after having shown a decline of 4% of its quarterly turnover, handicapped by the evolution of exchange rates.
The travel booking site Booking also lost more than 2% despite a good second quarter but a weaker outlook thereafter, signaling that room bookings for July had decelerated sharply.
The title of the Coinbase cryptocurrency platform, in bad shape since May with the decline in cryptoassets, jumped 22% to 98 dollars thanks to the announcement of a partnership with the BlackRock investment fund.
He chose Coinbase to offer a cryptocurrency access platform for his institutional clients.
On the bond market, 10-year rates fell to 2.67% against 2.70% the day before.
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