The New York Stock Exchange ended in scattered order on Tuesday, with the Dow Jones pausing after a sharp rise while the Nasdaq took advantage of the surge of some big tech names like Apple to climb to a new record high.
Wall Street’s flagship index, the Dow Jones Industrial Average, gave up 1.09 percent to 27,272.30 points as the tech-heavy Nasdaq gained 0.29% to 9,953.75 points. It exceeded the symbolic threshold of 10,000 points for the first time during the session.
The S.P. 500, which represents The 500 largest companies on Wall Street, fell 0.78% to 3,207.18 points.
“For the Dow Jones and the S-P 500, investors are simply making a few profit-takings,” notes Peter Cardillo of Spartan Capital Securities.
After a sudden collapse between the end of February and the end of March, the indices recovered rapidly, each taking more than 40%. This is despite the proliferation of indicators showing the severe impact of measures imposed to stop the Covid-19 pandemic on activity.
The World Bank again estimated on Monday that the global economy will contract by 5.2% this year.
The Economic Cycle Dating Committee of the National Bureau of Economic Research said the United States had entered recession as early as February.
But market participants are focusing mainly on the gradual recovery of the economy as the major economic powers deconfine and rely on the rebound in business activity.
And they have benefited greatly from the measures of the U.S. central bank “which has injected very generously money into the financial circuits,” points out Peter Cardillo.
– Serial records –
Forex traders will be watchful on Wednesday at the end of the meeting of its Monetary Policy Committee. If observers don’t really expect the institution to raise interest rates, they will be watching for any clues about future decisions.
The Nasdaq benefited from the good performance of some stars such as Amazon (up 3.04%), Apple (up 3.16%), Facebook (up 3.14%) Or Microsoft (up 0.72%). These groups have all finished at unprecedented levels on the stock market.
In the bond market, the 10-year U.S. debt yield fell sharply to 0.8187% from 0.8752% at monday’s close.
Sectors that had increased particularly in recent sessions declined, such as United Airlines (-8.32%), American Airlines (-8.67%) Delta (-7.57%).
Cruise lines also ended up in the red, as did Norwegian Cruise (-10.16%) or Royal Carribean (-9.94%), as well as The Wynn Resorts Casino Groups (-5.55%) or MGM Resorts (-7.15%).
Jeweller Tiffany, which is being bought by French luxury giant LVMH, gained 1.95% after reporting sales down 44% between February and April, when most of its stores were closed. However, the group highlighted the good performance of its sales in China and on the internet.
Shares in natural gas producer Chesapeake Energy ended down 66% after being suspended by the New York Stock Exchange. According to Bloomberg, the company is preparing for a possible bankruptcy filing.
Department store chain Macy’s dropped 7.12% despite news of a new $4.5 billion infusion and comments that recently reopened store sales were better than management had anticipated.