US Sept payrolls jump takes Nov 50 bp cut off the table
October 4, 2024
L’occupazione Usa sorprende
October 4, 2024The New York Stock Exchange opened down on Tuesday, in an atmosphere of restraint before a series of indicators that should provide information on the state of the American economy.
Around 13:50 GMT, the Dow Jones was down 0.66%, the Nasdaq index 1.26% and the S&P 500 index 0.86%.
“It’s the start of a new quarter and the previous one ended with a bang,” commented Peter Cardillo, of Spartan Capital.
Wall Street thus ended Monday with a bang, with, as a result, new closing records for the Dow Jones and the S&P 500.
Over the three months from June to September, the Dow Jones (+8.2%) did better than the Nasdaq (+2.6%) and the S&P 500 (5.5%), a sign of the beginning of diversification of investors, after a year and a half focused on the technology sector.
“There is caution as we enter a new month,” explains Peter Cardillo.
Most S&P 500 stocks were trading within tight margins.
On the bond market, rates remained volatile.
After a jump on Monday following statements deemed firm by the chairman of the American central bank (Fed) Jerome Powell, the yield on 2-year American government bonds fell back to 3.58%, compared to 3.64% the day before.
The New York stock market was awaiting the publication of the ISM index of activity in the manufacturing sector for September, as well as the JOLTS report from the Department of Labor on job openings and resignations in August.
The market reacted little to the start of the strike by dockers at major American ports on the East Coast and the Gulf of Mexico.
Oxford Economics estimates that each week of strikes would cut US GDP by $4.5 to $7.5 billion.
The threat of a work stoppage had been looming for several months and many companies took the lead in limiting the effects of this strike, which explains the measured reaction of operators, according to Patrick O’Hare of Briefing.com.
For the analyst, the lack of initial market anxiety about the consequences of this social conflict is also due to expectations of a short strike.
Boeing was sliding (-0.22%), triggered by information from the Bloomberg agency according to which the aircraft manufacturer is considering a capital increase of at least $10 billion.
This fundraising would allow the aircraft manufacturer to strengthen its balance sheet, burdened by a series of operational problems and a strike that has now lasted for several weeks.
Alphabet (+0.22%) benefited from opportunistic purchases, the stock having fallen by more than 13% since its peak in early July.
Conversely, Apple, close to its historical highs, was in retreat (-3.01%). According to Barclays analysts, the apple company has reduced its orders for chips for the iPhone 16 to one of its Taiwanese suppliers, which would indicate that demand for the new smartphone is less strong than expected.
Asset manager Apollo Global Management rose (+4.12%) after unveiling an ambitious strategic plan, which notably plans to more than double assets under management, to bring them to $1.5 trillion by 2029.
Cruise operator Carnival was taking on water (-3.95%). Investors were more interested in forecasts deemed disappointing than in results that exceeded expectations.
