PARIS (Reuters) – The New York Stock Exchange opened on a cautious note on Tuesday, with falling bond yields offering some support for stocks, while mixed corporate results prompted measured risk-taking, while the Reserve US federal government begins a two-day monetary policy meeting.
In early trading, the Dow Jones index lost 92.49 points, or 0.28%, to 32,836.47 points and the broader Standard & Poor’s 500 rose 0.01% to 4,167.26 points.
The Nasdaq Composite lost 0.14%, or 18.44 points, to 12,771.043.
The three indexes are cautiously rebounding from a massive sell-off in stocks in recent weeks after tensions in the bond sector and fears sparked by the conflict between Palestinian Hamas and Israel.
If the decision that the Fed will make on Wednesday on rates is hardly the subject of doubt, investors will however monitor the tone and subtext of the remarks of its president, Jerome Powell, for clues on the trajectory to long term rates. In particular, they hope for an easing of the cost of credit next year.
In the meantime, the yield on ten-year Treasuries fell by more than two basis points, to 4.8753%, compared to more than 5% at the start of the month.
The Treasury Department also indicated Monday evening that it planned to borrow $76 billion less than planned this quarter.
In addition to monetary concerns, investors are also interested in the many results of the day.
“The results of the morning seem mixed. But the slight drop in 10-year rates is an encouragement for the market,” underlined Kim Forrest, investment director at Bokeh Capital Partners.
In terms of values, Caterpillar, considered a reliable barometer of the economy, lost 6.58% due to an increase in its dealers’ stocks and a drop in the order book despite a growing quarterly profit.
Pfizer fell 1.63% after having its first quarterly loss since 2019.
VF Corp, the owner of Vans shoes, fell 4.43% after abandoning its annual forecast, citing a difficult market environment in the United States and fears of poor demand during the second half.
In spectacular increases, Pinterest jumped 14.70% thanks to quarterly results above expectations against a backdrop of recovery in the advertising market.
(Written by Claude Chendjou, edited by Zhifan Liu)
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