(New York) The New York Stock Exchange opened in disarray on Thursday, catching its breath after a crucial vote on the debt ceiling in the United States Congress, and misguided by the forecasts deemed disappointing by several companies.
By 10 a.m. EST, the Dow Jones was down 0.46%, the NASDAQ index was up 0.12%, and the broader S
For Briefing.com analyst Patrick O’Hare, the market only “applauded with one hand” the vote, Wednesday evening, in the House of Representatives of the text which must put an end to the American debt crisis, once it is also passed in the Senate.
The market had already integrated, since Friday, the resolution of the file, which limited the effect of this vote, he added.
“Sometimes on Wall Street, we buy the rumor and sell the news,” added Adam Sarhan of 50 Park Investments, meaning the market tends to anticipate information and its consequences and then, once confirmed, to take the opposite direction.
“The market went up before the deal came” between the White House and the Republican opposition in Congress, he pointed out. “Now that it’s done, it’s likely to drop a bit, before recovering,” he predicts.
In addition, the New York market was upset by a series of company forecasts that it found too timid, even worrying.
The Macy’s department store network (-3.05%) was thus sanctioned after having lowered its annual forecasts and published quarterly sales below expectations.
CEO Jeff Gennette explained that the group expected a slowdown in consumption this year, “but since late March, demand has weakened even further in non-essential categories.”
The specialist in dematerialized customer relationship management Salesforce also fell (-5.61%), despite results above expectations in the first quarter and an increase in the margin forecast for the year.
The San Francisco company’s number two, Brian Millham, nevertheless reported that some customers were being cautious about their investments.
Saleforce weighed on the entire Dow Jones, of which it represents about 4.5%.
The artificial intelligence (AI) software publisher C3.ai fell (-18.65%), weighted by forecasts considered cautious by Wall Street, which saw two other flagships of the industry last week. ‘IA, Nvidia and Marvell Technology, raise their projections.
Marked by the fabulous results of Nvidia (3.43%), which again approached a trillion dollars in capitalization on Thursday, the market is now more demanding with the AI ​​sector.
Cybersecurity giant CrowdStrike (-4.32%), which relies heavily on AI and machine learning, paid the price. Despite results above expectations, the Austin (Texas) company was pounded, investors deeming its annual forecasts, which were revised upwards, insufficient.
The New York Stock Exchange reacted little to the ADP report, which nevertheless clearly surprised on the upside, with 278,000 job creations in the private sector in May in the United States, against 180,000 expected. Investors nevertheless tend to welcome this publication with caution, considered less reliable than the monthly employment report, expected on Friday.
The vote in Congress helped push bond yields down again. Investors no longer fearing a default in payment by the United States, they began to buy back American debt, which lowered rates, which moved in the opposite direction to prices.
The yield on 10-year US government bonds stood at 3.59%, against 3.64% the day before closing, the lowest in two weeks.