(News Bulletin 247) – The New York Stock Exchange opened on an uncertain note on Monday morning, pending the numerous company results to be published this week.
At the end of the morning, the Dow Jones is perfectly stable at 33,895.9 points, while the Nasdaq Composite fell 0.2% to 12,095 points, which shows that the markets are looking for direction.
Sixty S&P 500 companies are due to present their quarterly results this week, including some heavyweights such as Bank of America, Netflix, Tesla, J&J, Morgan Stanley and P&G.
If these big companies were to warn investors about the evolution of their outlook, this could be cause for concern for markets increasingly concerned about the threat of a coming recession.
The wait-and-see attitude of the market is reflected in the moderation of the VIX, the CBOE’s volatility index, a closely followed barometer of investor nervousness, which has returned to lows since January 2022.
At sector level, defensive stocks are performing well, as evidenced by the increases in real estate (+1.6%), community services (+0.6%) and everyday consumer products (+0.5 %).
Conversely, telecoms (-1.5%) and energy (-0.8%) in the wake of the decline in oil prices are largely neglected.
While awaiting the next wave of results, investors took notice this morning of a spectacular rebound in activity in the manufacturing sector in the New York area, without however reacting too much to the publication of these figures.
The local Fed’s ‘Empire State’ index came out at +10.8 for the current month, compared to -24.6 in March, a level well above expectations.
Another good surprise, Charles Schwab – who had to face large withdrawals of deposits last month – reassured the market with its quarterly and climbed almost 2%.
On the bond market, the session was marked by renewed tension on the yield curve, with a ten-year Treasuries yield which took eight basis points to 3.60%.
The dollar took the opportunity to take its revenge with a rebound of 1.6% towards 1.0930 against the euro while it was close to the threshold of 1.11 on Friday.
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