2023-11-16 21:54:00
Published on Nov 16, 2023 at 10:54 p.m.
par Sinéad Carew et Shristi Achar A
November 16 (Archyde.com) – The New York Stock Exchange ended in mixed order on Thursday, after a seesaw session, while Cisco and Walmart fell after communicating disappointing forecasts, while the decline bond yields protected some high-growth stocks.
The Dow Jones index fell 0.13%, or 45.74 points, to 34,945.47 points.
The broader S&P-500 gained 5.36 points, or 0.12%, to 4,508.24 points.
The Nasdaq Composite advanced 9.84 points (0.07%) to 14,113.67 points.
The S&P-500 and the Nasdaq rebounded at the end of the session to finish in the green for a fifth consecutive day.
Wall Street’s three main indices had risen over the previous two sessions in the wake of data showing a slowdown in inflation in the United States, fueling hopes that the Federal Reserve (Fed) will not make any further hikes. rates.
At the same time, the progress of a text in Congress to avoid a “shutdown” (partial closure of federal administrations) at the end of the week contributed to investor confidence.
However, the decline of Cisco, which revised its annual forecasts downwards, and Walmart, which warned of consumer caution, gave investors the opportunity to breathe, commented Robert Pavlik, portfolio manager at Dakota Wealth .
Noting that Cisco and Walmart represent the “backbone” of their respective industries, Paul Nolte, strategist at Murphy & Sylvest, said the weakness of the two groups “raises a little questions about the health of consumption and, perhaps , on that of the technological sector”.
Others, however, noted the strength of certain “tech” giants, such as Microsoft, Apple and Nvidia, helped by falling bond yields.
US Treasury bonds fell following a report from the US Department of Labor showing a stronger than expected increase in weekly jobless claims, reinforcing the thesis of an end to the cycle of monetary tightening launched in March 2022 by the Fed.
Markets expect the US central bank to keep interest rates unchanged again in December, as it did earlier this month. According to FedWatch, 62% of market participants also expect the Fed to cut rates next May.
Among the major sectors of the S&P-500, energy was the worst performer, falling 2.1%, driven by falling crude prices. Communication services recorded the largest increase, with 0.9%.
Cisco Systems plunged 9.8% after lowering its annual revenue and profit forecasts, citing slowing demand for its networking equipment.
Another technology group, Palo Alto Networks ended down 5.4% after disappointing quarterly forecasts.
Walmart, which had reached an unprecedented peak in the session the day before, fell 8.1% after declaring that American consumers were spending cautiously because of inflation, even as the retailer revised its prices upwards. annual sales and profit forecasts.
This warning weighed on other retailers, like Dollar General and Dollar Tree.
(French version Jean Terzian)
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