The New York Stock Exchange chained a fourth consecutive session of decline on Wednesday, unable to put behind it the firm words of the president of the American central bank (Fed), for lack of new data of importance.
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The Dow Jones lost 0.78%, the Nasdaq index, 0.56%, and the broader S&P 500 index, 0.88%.
Just like Tuesday, following a promising start, in the green, Wall Street ran out of steam throughout the session, before plunging once more.
The S&P fell back to its lowest level in over a month on Wednesday.
“We need more data” to boost a new dynamic in New York, which continues to digest the proactive statements of Fed Chairman Jerome Powell on Friday, according to Jack Ablin of Cresset Capital.
The operators did not draw conclusions from the monthly survey by ADP, which showed that the private sector had created 132,000 jobs in August, almost a third of the 315,000 expected by economists.
“I don’t think the ADP numbers tell us much regarding Friday’s jobs report,” said Jeffrey Roach, chief economist at LPL Financial, for whom it might be a “false alarm.”
The ADP report is thus often considered unreliable and unrelated to the statistics published by the Ministry of Labor, expected on Friday.
None of the other minor indicators released Wednesday carried weight on Wall Street.
“Today, we are in a market where bad news (from the American economy) is considered good news” because it opens up the possibility of a less tough Fed on the monetary level, explained Jack Ablin.
“But right now there’s not a lot of bad news,” he said.
Several macroeconomic data expected on Thursday and Friday, including the monthly employment report, might thus stir up the indices.
But until further notice, “the sellers are clearly in charge,” says Adam Sarhan of 50 Park Investments.
The CFRA firm even sees Wall Street flirting once more with the lows of the year, recorded in June, September being traditionally the worst month of the year for equities.
After finishing the previous session in sharp decline, Snap soared (+ 8.69% to 10.88 dollars) thanks to the announcement of the elimination of 20% of its positions and a strategic refocusing, well received by analysts.
Communication from Snapchat’s parent company benefited Meta (+3.67% to 162.93 dollars), alone among the rating giants not to end in the red.
The manufacturer of computers and printers HP has unscrewed (-7.68% to 28.71 dollars) following reporting a turnover well below expectations. The group was also cautious in the current quarter, due to “headwinds”.
The ready-to-wear holding company PVH (-10.49% to 56.25 dollars), which notably includes the brands Calvin Klein and Tommy Hilfiger, was also sanctioned following the publication of a turnover below analysts’ forecasts.
The group plans to reduce the number of its employees in support and administrative functions by 10%, also mentioning “headwinds”.
The Bed Bath & Beyond household goods chain plunged (-21.30% to 9.53 dollars), driven by a series of announcements on Wednesday before the opening.
The group will close 150 stores, reduce its workforce by 20%, borrow $500 million, and has filed a regulatory document allowing it to quickly proceed with a capital increase.
