Wall Street in disarray, hesitating between Jerome Powell and Donald Trump

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Wall Street in disarray, hesitating between Jerome Powell and Donald Trump

New York (New York)  – July 11th 2019 11:19

Wall Street was moving in a disorganized pattern after an opening up Thursday, both sustained as the day before by the accommodating tone of the boss of the US central bank (Fed) Jerome Powell, but also weakened by Donald Trump’s words related to the war trade with China.

Its flagship index, the Dow Jones Industrial Average, took 0.40% to 26,967.65 points at 14:50 GMT, soon after having exceeded for the first time the threshold of 27,000 points.

The broad S & P 500 index was stable at 2,993.19 points.

The Nasdaq index lost 0.11% to 8,193.25 points.

This high-tech index had ended at a record Wednesday on the New York Stock Exchange at 8,202.53 points (+ 0.75%), in the wake of the intervention on Wednesday of Mr. Powell, suggesting a decline in rate of interest at the next meeting of the institution on 30 and 31 July. The Dow Jones gained 0.29%.

But after re-igniting at the opening on Thursday for the same reason, the market reacted negatively to a tweet from US President Donald Trump, accusing China of not buying US agricultural products as Beijing had committed.”We do not expect an immediate agreement between the two countries, not before the end of the summer anyway,” predicted Peter Cardillo of Spartan Capital.US-Chinese talks to end trade war resumed – after a brutal halt in May – during a summit between Trump and his counterpart Xi Jinping on the sidelines of the Osaka G20 end of June.

– Results –

Before the umpteenth bloodshed of Mr. Trump on social networks, the market reacted to a statement by the head of the US central bank on Wednesday, leaving the door open for a future decline in interest rates by drawing a table mixed of the American economy.Rate cuts are generally viewed favorably by investors as they facilitate borrowing conditions for households and individuals in the United States.The indices have particularly advanced after this intervention because more brokers now expect a more significant rate cut than initially anticipated.The Fed leader also spoke Thursday before the Senate Banking Committee.Among the indicators, consumer prices in the United States modestly advanced in June over a month but more than expected by analysts, according to the CPI price index released Thursday by the Department of Labor.In the bond market, the interest rate on US 10-year debt stabilized at 2.084% against 2.061% the day before closing.Among the values ​​of the day Thursday, the airline Delta Air Lines announced “record” results in the second quarter, marked by a jump of more than 39% of its profits, and in the wake raised its annual forecasts. His title took 1.60%.Several insurance groups jumped on the stock market after the White House renounced the ban on certain discounts granted by American laboratories. CVS earned 5.38%, UnitedHealth 5.14% and Cigna 12.35%.Amazon took 0.42%. The tech giant announced Thursday a training plan that will affect about a third of its workforce in the United States. The $ 700-million plan, which will target 100,000 people, comes in the context of increased automation of low qualification functions.The American Eagle Outfitters clothing and accessories sales group advanced 0.05% after announcing the signing of a partnership with the Green Growth Brands group, for the marketing of cannabidiol-infused products (CBD), the non-psychoactive part of the cannabis, in 500 of its shops and on its website.