(New York) The New York Stock Exchange concluded in mixed order on Tuesday, a tension on bond rates affecting the NASDAQ and the S
The Dow Jones Index advanced 0.20% to 35,630.68 points. The tech-heavy NASDAQ fell 0.43% to 14,283.91 points and the broader S
“We’ve recently seen the market go up every day so it’s kind of normal for it to have a ‘off’ day. I don’t want to over-interpret this decline, which is still very weak”, relativized Steve Sosnick of Interactive Brokers, also referring to “profit taking”.
A sharp rise in long bond yields also cooled stock market investors. Yields on ten-year Treasury bills soared well above 4%, the highest in three weeks.
Around 4:15 p.m., they stood at 4.03% against 3.95% the day before.
“It sure doesn’t help” stocks, Sosnick commented. The US Treasury announced the day before that it would raise a billion dollars in loans over the next three months. “That’s a lot of money,” a high for a third quarter, the analyst noted.
This deluge of issues of new bonds to be expected has lowered their price and increased the rates which are moving in the opposite direction.
The market also stalled due to mixed corporate results.
Thus the title of Pfizer laboratories dropped ballast (-1.21%) after a greater than expected decline in the group’s turnover in the second quarter, due to the drop in the need for vaccines and treatments against COVID- 19.
The pharmaceutical giant also lowered its full-year sales forecast and now expects a tighter range, between 67 and 70 billion dollars, against 67 to 71 previously.
Merck (-1.32%), meanwhile, posted a loss of almost six billion dollars in the second quarter, mainly due to a charge related to the absorption of the Californian biotech company Prometheus Biosciences.
In freefall, Uber shares (-5.68% to $46.65) reflected investor disappointment despite better-than-expected second-quarter earnings for the chauffeur-driven vehicle booking platform and meal delivery.
But this profit of 394 million dollars against a loss of 713 million a year before is mainly due to the accounting appreciation of its participations in start-ups and less to its own activity.
Revenue fell short of analysts’ forecasts at $9.2 billion. Commenting on the move, Steve Sosnick noted that “there was plenty of room for disappointment as the stock is up 60% in the last three months!” »
The Dow Jones has remained afloat, largely thanks to one of its star members, construction and mining giant Caterpillar.
The stock soared 8.85% to $288.63.
The Texas group announced a near doubling of its net profit, benefiting from an increase in prices and volumes which led to a 22% jump in turnover.
Yet Caterpillar, which is considered a barometer of the health of the global economy, warned that its sales and operating margins would decline for the third quarter.
After the market closed, coffeehouse chain Starbucks reported better-than-expected earnings per share, although quarterly revenue – a company record of $9.2 billion – disappointed. The stock fell 0.70% in electronic trading.
On the macroeconomic side, the ISM manufacturing activity index in the United States for July was disappointing. At 46.4% compared to 46% the month before, this certainly represents a weaker contraction than in June, but it was less good than expected.