Wall Street key indexes are moving with mixed signs on Monday as investors again turn their attention to the rise in bond yields in anticipation of a barrage of corporate results in the coming days.
The index recorded heavy losses last week, with the S&P 500 and the tech Nasdaq losing 2.1% and 2.6% respectively, completing two consecutive weeks of losses. Industrial Dow fell 0.8% in the third consecutive week of losses.
Investment interest in the start of the new week is gathering the new rally in US bond yields as investors expect the Federal Reserve to tighten its policy faster to deal with the highest inflation in the last 40 years.
The 10-year US yield was found to be gaining 4 basis points earlier today, climbing over 2.86%.
The expected tightening of Fed policy has rekindled concerns about the resilience of the US economy, which is already under pressure from disruptions to global supply chains since the war in Ukraine and massive lockdowns in China. Goldman Sachs chief economist Jan Hatzius and his team estimate that the US economy faces a 35% chance of entering a recession in the next two years, according to foreign agencies.
Indicators – Statistics
On the board, the Dow Jones gained 135.55 points or 0.39% to 34,586.78 points, while the broader S&P 500 adds 6.72 points or 0.15% to 4,399.31 points. The technology Nasdaq loses 57.09 points or -0.43% to 13,293.81 points.
Of the 30 stocks that make up the Dow Jones industrial average, 23 are moving with a positive sign and only seven with a negative one. The biggest gainers were Caterpillar with gains of $ 6.38 or 2.80% at $ 234.19 followed by American Express at $ 183.65 with gains of 1.37% and JPMorgan Chase with gains of 1.33 % at $ 127.80
On the other hand, the three stocks with the biggest losses are Nike (-2.03%), Salesforce (-1.20%) and Home Depot (-0.94%).
Meanwhile, quarterly results are expected to continue monopolizing interest this week as well. It announced today that its quarterly profits fell by $ 1 billion, however, the financial giant managed to exceed the estimates of Wall Street analysts, while recording healthy growth in its loans.
In particular, Bank of America earned $ 7.1 billion, or 80 cents a share, from $ 8.1 billion, or 86 cents a year, a year earlier. Revenue rose to $ 23.2 billion from $ 22.8 billion. Analysts’ average estimates in a FactSet poll put Bank of America earnings at 75 cents per share with revenue of $ 23.1 billion.
The quarterly results of giants such as Netflix Inc. will follow in the coming days. and Tesla Inc.
Source: Capital
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