PARIS (Reuters) – The New York Stock Exchange opened lower on Monday with the rise in bond yields after a statement from the president of the American Federal Reserve (Fed) calling for caution on the expected drop in key rates.
In early trading, the Dow Jones index lost 143.77 points, or 0.37%, to 38,510.65 points and the broader Standard & Poor’s 500 fell 0.19% to 4,948.81 points.
The Nasdaq Composite lost 0.06%, or 9.03 points, to 15,619.91.
In an interview broadcast Sunday evening by CBS, Jerome Powell, Chairman of the Fed, said that the central bank can be “cautious” in deciding when to cut interest rates in a context of solidity of the economy.
The labor market in the United States continues to show remarkable strength as evidenced by the figures published on Friday when investors will learn at 3:00 p.m. GMT the ISM index of activity in services for the month of January.
On the bond market, the yield on ten-year Treasuries jumped by almost ten basis points, to 4.1232%.
In terms of values, Caterpillar, considered a good barometer of the American economy, announced on Monday an increasing quarterly profit, supported by strong demand for its construction equipment in a context of increased infrastructure spending and a rebound in the residential real estate market in the United States. The action takes 4.83%.
Other quarterly publications liven up discussions such as that of Estée Lauder (+16.36%), which announced job cuts after a lowering of its annual profit forecast, or that of McDonald’s (-2.21 %), which published quarterly revenue below expectations for the first time in almost four years.
BOEING fell 2.65% after new quality problems on its 737 MAX.
(Written by Claude Chendjou, edited by Sophie Louet)
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