(News Bulletin 247) – The New York Stock Exchange started down on Monday, penalized in particular by a decline in technology stocks, victims of a movement of profit taking after their gains in recent weeks.
At the end of the morning, the Dow Jones fell 0.2% to 33,609.9 points, while the Nasdaq Composite fell 0.2% to 12,206.5 points.
The high technology compartment, down 0.5%, is the main contributor to the market decline, while the Nasdaq was the only Wall Street index to end the past week in the green (+0.1%).
Among the heavyweights in the sector, Microsoft, Intel and Apple – whose quarterly results had all been well received – lost 1%, 0.8% and 0.2% respectively.
“The big lesson of the earnings season is that ‘Big Tech’ is doing well,” said Dan Ives, star analyst at Wedbush Securities.
Despite the doubts that continue to surround the high valuation of the sector, the professional believes that the sector could still grow by an additional 10% to 12% by the end of the year.
Technology stocks, which are particularly sensitive to changes in interest rates, are also suffering from the rise in bond yields.
The yield on ten-year Treasuries came back above 3.50% this morning, a level it had not reached since the beginning of the month, which makes investing in US Treasuries more attractive.
Note that oil is continuing its recent recovery, with a barrel of American light crude oil (WTI) up 2% to nearly $73 in the wake of Friday’s employment figures, which warded off the specter of a next recession.
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