PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday before the publication of the monthly ISM index of services activity while fears about the evolution of the American economy increased slightly in the awaiting Friday’s employment report.
In early trading, the Dow Jones index lost 139.18 points, or 0.38%, to 36,065.26 points and the broader Standard & Poor’s 500 fell 0.31% to 4,555.42 points.
The Nasdaq Composite lost 0.2%, or 27.77 points, to 14,157.717.
The three indices had already finished in the red the day before against a backdrop of caution after the strong improvement in November which notably propelled the S&P 500 to its highest closing level of the year.
The fall in long-term US bond yields, notably the ten-year which fell during the session to a low since September 1, at 4.197%, demonstrates that investors are now taking into account the possibility that the economy will weaken to a pace faster than expected, note analysts on the rates market.
“Markets are comfortable with the idea that the economy is slowing and that consumption is facing headwinds, but they do not know to what extent this will slow,” notes Ian Lyngen, head of US rates strategy at BMO Capital Markets.
Market concerns could be confirmed or dissipated by the publication at 3:00 p.m. GMT of the ISM services index for the month of November. The Reuters consensus forecasts a slight rise to 52.0 after 51.8 in October.
But it is above all the official report on American employment and wages scheduled for Friday that the markets are waiting for, less than a week before the monetary policy meeting of the American Federal Reserve (Fed).
In terms of values, Take-Two Interactive is in the red after the presentation of the trailer for the latest part of its video game “Grand Theft Auto VI”, which will be released in 2025.
The Chinese groups listed on Wall Street PDD Holdings, JD.Com and Baidu fell by 0.43% to 1.57% in pre-market trading after the Moody’s agency lowered the outlook for China’s rating to ” stable” to “negative” due to the country’s debt.
CVS Health advances 3.32% after announcing it expects adjusted earnings of at least $8.50 per share for next year, in line with Wall Street expectations.
(Writing by Claude Chendjou, edited by Kate Entringer)
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