(News Bulletin 247) – The New York Stock Exchange should open moderately higher on Friday morning, the rating being notably driven by the rebound in technology stocks after their sharp drop the day before.

Half an hour before the opening, the ‘future’ contract on the Dow Jones index advances by 0.4% while that on the Nasdaq 100 increases by 0.7%, suggesting a start to the session in the green.

The high-tech segment should recover, supported by a few bargain buybacks after the Nasdaq fell more than 2%, its heaviest decline in four months.

The sell-off in the tech sector, fueled by disappointing results from Netflix and Tesla, may have been more pronounced than investors anticipated, which could encourage a bargain-hunting reflex, particularly on GAFAM.

‘Buying the declines and selling the marked rebounds could be a profitable strategy for the summer months on this type of mega-caps,’ said Olivier de Berranger, investment director of La Financière de l’Echiquier (LFDE).

The Nasdaq’s rise is still more than 34% year-to-date, compared to an 18% rise for the S&P 500 index as a whole, an outperformance that leads some to believe the sector is overvalued.

In order to justify these high valuation levels, publications from Microsoft, Alphabet, the parent company of Google, and Amazon – all scheduled for next week – will be closely scrutinized.

In the immediate future, the beginning of the session is animated by new publications of companies in halftone, which discourage the taking of risks and which should be heavily sanctioned at the opening.

American Express published EPS for the second quarter up 12% to 2.89 dollars, for revenue up similar to a record of nearly 15.1 billion.

The oil services group SLB meanwhile reported a turnover of 8.1 billion dollars for the second quarter, up 20% compared to the same period a year earlier.

On the other hand, no leading statistics are on the agenda for the day.

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