The New York Stock Exchange moved in choppy order on Friday, the day after a nightmarish session, deprived of recovery by several bad indicators, confirming the slowdown in the US economy.
Around 2:25 pm GMT, the Dow lost 0.30%, the Nasdaq, which is dominated by tech stocks, 0.47%, and the broader S&P 500 lost 0.14%.
“We are looking for a recovery, but we should expect a lot of volatility, because it is the last day of options” for June, these financial products that allow you to bet, up or down, on the development of indices or stocks, explained Peter Cardillo of Spartan Capital Securities.
Watch, during the few minutes that followed the opening, the indicators oscillated between red and green, before taking the direction of the increase more clearly.
After a session that saw the Dow close at its lowest level in nearly 18 months on Thursday, Wall Street was struggling to move forward, as the appearance of momentum was dampened by several bad numbers released on Friday.
Industrial production rose only 0.2% in May compared to April, less than the 0.5% economists had expected.
Another disappointment, the production capacity utilization rate rose very modestly, to 79.0% (78.9% in April), versus the expected 79.3%.
The picture is further darkened by a Conference Board Institute poll, which revealed that 76% of the 750 presidents interviewed consider either a recession looming, or that it has already been effective.
“Demand must fall to cool inflation,” Jack Applin of De Cresset Capital responded. “So anything that can lower bond prices will help the stock markets.”
Bond prices also fell slightly, the day after the day was marked by high volatility.
The yield on the US 10-year government bond was 3.28% versus 3.30% the day before.
“Investors want to see slow inflation, and at the same time, no slowdown in demand,” the analyst continued. But it is an impossible combination.
Companies are beginning to integrate this slowdown in US economic activity more and more on the face of it, and like Adobe on Wednesday after the stock market, slashed their forecasts downward.
The software publisher, which was sanctioned Friday (-2.45% to $356.12), expected sales volume and net profit below the numbers reported so far, particularly due to the fallout from the war in Ukraine and the impact of the dollar’s rise.
“It is impossible to imagine an economy slowing with consumption without having a negative impact on corporate results,” said Gregory Volokin, of Meeschaert Financial Services.
For Peter Cardillo, there will be no conclusions to be drawn from Friday’s session, which comes after another busy week. “What happens today won’t mean much.”
At the rating, steelmaker US Steel (+2.04% to $19.98) benefited from a forecast, which was published on Wednesday after the close, for earnings well above analysts’ expectations.
The group said higher steel prices more than offset higher energy costs.
US Steel captured a portion of the segment in its wake, notably Steel Dynamics (+2.06% to $71.31).
Chinese e-commerce giant Alibaba was wanted (+1.56% to $103.03), while, according to Reuters, the Chinese regulator had allowed its financial services subsidiary Ant Group to set up a financial holding company, a crucial step in light of the potential listing. .
Two days after filing for bankruptcy, cosmetics group Revlon (+97.81% to $3.85) took off after an article was published in the Economic Times daily stating Indian conglomerate Reliance Industries’ interest in a potential acquisition.
The WWE group, which runs World Wrestling Entertainment, has been penalized (2.94% to $62.96) after announcing the temporary withdrawal of its symbolic boss, Vince McMahon, the subject of an investigation into an affair with an employee.