2023-10-04 21:01:08
New York (AFP) – The New York Stock Exchange ended higher on Wednesday, pleasantly surprised by the decline in bond rates and a job creation figure well below expectations, which gives hope for the end of the bank’s monetary tightening American center.
The Dow Jones gained 0.39%, the Nasdaq index gained 1.35% and the broader S&P 500 index gained 0.81%.
“The ADP report was the trigger today,” commented Steve Sosnick of Interactive Brokers.
It showed that the private sector had created only 89,000 jobs in September, almost half of the 150,000 that economists expected.
“The labor market is cooling down again,” noted Jeffrey Roach of LPL Financial, “which takes pressure off the Fed, which is worried about a second round of inflation,” a phenomenon characterized by a rising wages to compensate for inflation, which further increases prices and creates a spiral.
Operators have also observed a further deceleration in salary progression, for the twelfth consecutive month, according to the ADP firm.
These data have refreshed the bond market, which has been overheating for several weeks.
The yield on 10-year US government bonds, which had earlier reached a new 16-year high at 4.88%, fell to 4.73%, compared to 4.79% the day before at close.
“Bonds and stocks had fallen too far,” according to Steve Sosnick, “and it is logical that with an easing of rates, they would rise again.” The price of bonds moves in the opposite direction to their yield.
Enthusiasm was tempered by the fact that ADP figures are often considered unreliable for predicting those of the monthly employment report published by the Ministry of Labor, the next batch of which is expected on Friday.
In addition, other indicators published Wednesday after the ADP report put the slowdown in the American economy into perspective, underlined José Torres of Interactive Brokers.
The ISM index thus showed that activity in services remained clearly expanding in September in the United States, at 53.6% (any figure above 50% indicates growth).
The small rebound offered by the New York market is mainly due to the seven largest American capitalizations, all from the technology sector with the exception of Tesla (+5.93%), which pulled up the rating.
Among them, Alphabet (+2.23%) and Amazon (+1.83%) were the most prominent.
“When the seven are in the green, it is very difficult for the major indices not to rise,” summarized Steve Sosnick.
Under the effect of a fall in the price of black gold, oil stocks were shaken, like ExxonMobil (-3.74%) and Chevron (-2.33%).
Intel was sought after (+0.67%) after announcing on Tuesday its intention to split its subsidiary Programmable Solutions from the rest of the group and to introduce it on the stock market.
This division manufactures electronic chips that their buyers can program according to their needs. They are particularly used in data storage centers, aeronautics and defense.
Boeing fell (-1.16%) despite the announcement, Tuesday after market trading, of a firm order for 50 787-9 Dreamliner aircraft by United (+2.17%), which exercised an option taken during a previous order.
These planes will not be delivered before 2028 but the American company wanted to take the lead and anticipate possible delivery delays.
Amgen rose (+1.70% to $261.95) despite the publication of a note from the American Medicines Agency, the FDA, which expressed reservations about clinical studies relating to Lumakras, a treatment against lung cancer.
Ford reversed course (-0.66%) despite the increase (+7.7%) in its sales in the third quarter in the United States.
© 2023 AFP
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