Wall Street mixed at opening while waiting for Jackson Hole

Wall Street mitigée à l’ouverture en attendant Jackson Hole
August 25, 2021
Peter Cardillo decodes Fed Chair Powell’s speech, says tapering is positive for the market
August 30, 2021

Wall Street mixed at opening while waiting for Jackson Hole

The New York Stock Exchange traded in scattered order on Wednesday, pausing after record highs the day before, awaiting the US Federal Reserve (Fed) conference in Jackson Hole on Friday

Around 2:00 p.m. GMT, the Dow Jones index lost 0.15%, the Nasdaq advanced 0.20% above its record the day before. The S&P 500 gleaned 0.03%.

Tuesday, the Nasdaq, with strong technological concentration, had gained 0.52% to 15,019.80 points, a new record after that of the day before.

The S&P 500, up 0.15%, also hit a new high at 4,486.23 points. The Dow Jones remained stable, grabbing 0.09% to 35,366.26 points.

“The market seems to be cooling off after a hot start to the week which propelled the S&P 500 and the Nasdaq to new records,” observed Patrick O’Hare of Briefing.

But for Peter Cardillo of Spartan Capital Securities, it was not excluded that Wall Street posted a third positive session in a row.

“The fact that the House of Representatives has approved a framework putting in place a deadline for the passage of spending in favor of infrastructure will undoubtedly be the main factor of the day,” said the economist.

The Lower House on Tuesday approved a resolution that will bypass a possible blockage of Republicans in the Senate, in order to be able to adopt in the fall, with only Democratic votes if necessary, the vast social reform plan of 3.500 billion dollars.

At the same time, Democratic House Speaker Nancy Pelosi has pledged to put to a vote by September 27 the Biden plan for infrastructure investments, amounting to $ 1.2 trillion.

Investors were also cautious, awaiting the speech of the boss of the Central Bank, Jerome Powell, Friday at the annual conference in Jackson Hole (Wyoming).

“Uncertainty remains palpable as to the timing and size of the reduction in asset purchases in the 4th quarter,” noted Schwab analysts as the market has been waiting for several weeks to learn more about the evolution of the Monetary Policy.

An indicator of durable goods orders in July came in better than expected even though there was a drop in aircraft orders.

The chain of sports equipment stores Dick’s Sporting Goods jumped 15.84% to 132.40 dollars after announcing record results in the second quarter.

On the other hand, that of Nordstrom department stores, whose results remained below their level before the pandemic, was sanctioned, falling 15% to 32.11 dollars.

The very volatile and viral title of video game stores Gamestop, which had caused a serious bout of volatility on Wall Street in January, dropped 7% to 195 dollars after having climbed 27% the day before.

Yields on 10-year Treasuries rose 1.30% from 1.29% the day before.