The New York Stock Exchange ended a hesitant session on Monday without direction, on the eve of important quarterly results that could set the tone for the market.
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According to final results, the Dow Jones index climbed 0.28% to 31,990.04 points and the S
“The market lost its early trading gains and it was mainly the Nasdaq that weighed on the whole market,” said Peter Cardillo of Spartan Capital. “The reason for that is that investors are getting cautious ahead of big tech results,” he added.
While the week is one of the busiest in terms of corporate results, the figures for megacaps Alphabet (Google, 0.14%) and Microsoft (-0.59%) are expected Tuesday after the close.
In the wake of these expectations, all the big names in the sector ended in the red, from Facebook (Meta, -1.55%) to Amazon (-1.05%) via Twitter (-1.48%) and Netflix (-0.88%).
Shares of semiconductor manufacturers also ended in negative territory such as Nvidia (-1.70%) or AMD (-0.64%), pending a US Senate vote for support of 50 billion. dollars to the industry, which is suffering from difficulties in the supply chain.
In total, some 175 companies in the S
In addition to corporate earnings, markets will have their eyes on the Federal Reserve (Fed) monetary meeting which begins on Tuesday. The US central bank is expected to announce a further 0.75 percentage point hike on Wednesday in a bid to curb inflation, according to most operators.
“This 75 basis point increase is already taken into account by the markets”, noted Peter Cardillo, but according to him, “it is the results of companies that will set the tone for the stock market for the rest of the summer” .
Investors will also watch for crucial indicators of the US economy, starting with the first estimate of gross domestic product (GDP) in the second quarter due Thursday.
The first world economy was already in contraction in the 1st quarter (-1.6%). Technically, an economy is considered in recession after two consecutive quarters of negative growth.
US President Joe Biden nevertheless assured Monday evening that the country would not experience a recession.
His Treasury Secretary, Janet Yellen, also certified on Sunday that while the US economy was slowing, the economic data did not herald a recession. “A recession is a generalized contraction that affects many sectors of the economy. We just don't have that,” said the Minister of Economy and Finance.
Inflation for June measured by the PCE index, the Fed's favorite barometer, is also expected on Friday.
On the market, shares in the oil sector rebounded strongly in the wake of an increase in oil prices linked to the announcement by the Russian gas company Gazprom that it was going to drastically reduce gas deliveries to Europe from of Wednesday.
Chevron a pris 2,97%, ExxonMobil 3,32% et ConocoPhillips 4,43%.
Walmart, the number of discount distribution, fell almost 8% after the close (-0.14% to 132.02 dollars), following its announcement of a drop in its profit forecast while inflation changes the habits of its customers.
The title of the manufacturer of Weber barbecues descended into hell (-12.65% to 6.56 dollars), after posting a loss in the 2nd quarter and forecasting a drop in sales for the next, while its CEO leaves the group .