(News Bulletin 247) – Wall Street is treading water on Monday on the eve of the Independence Day holiday, with markets navigating quietly in tight volumes that come with low volatility.
At the end of the morning, the Dow Jones fell less than 0.1% to 34,376.4 points, while the Nasdaq Composite was perfectly stable at 13,787.3 points.
Activity is expected to be reduced and trading very quiet on the 4th of July bridge, which will see Wall Street close at 1:00 p.m. (New York time) today, then remain closed all day tomorrow.
Some profit-taking occurs, however, but at the margin, following the gains of around 2% recorded last week.
Technology stocks (-0.6%) are the most affected by these releases, after a gain of more than 32% for the Nasdaq index since the start of the year.
For analysts at Raymond James, US equity markets are about to enter a more ‘delicate’ period in the second half, with a risk of disappointment that they consider increasingly real.
“The combination of rising interest rates, tightening credit conditions and slowing labor market should push the economy into a modest recession from the fourth quarter,” predicts the US asset manager.
The statistics published in the morning seem to prove him right.
The ISM manufacturing index intensified its decline to 46 in June, from 46.9 in May, while economists expected it to rise to 47.2.
For the record, the bar of 50 points separates growth and contraction of activity.
Another manufacturing PMI index published in the morning, that of S&P Global, came out well below the 50 threshold, thus confirming the prospect of the US economy entering recession in the second half of the year.
On the value side, Tesla climbed 7% after announcing sales figures well above market forecasts for the second quarter, thanks in particular to recent price cuts decided by the group.
Apple lost ground (-1%) in the first exchanges, but managed with a valuation of 3,020 billion dollars to stay above the threshold of 3,000 billion in capitalization recrossed on Friday.
The AstraZeneca title listed in New York suffered a heavy decline (-0.7%) following the presentation by the pharmaceutical group of the results of a phase III study in lung cancer deemed ‘difficult to interpret’.
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