Wall Street is not confident at the beginning of the week-May 16, 2022 16:54

New York Stock Exchange Façade (AFP / ANGELA WEISS)

New York Stock Exchange Façade (AFP / ANGELA WEISS)

The New York Stock Exchange fell slightly on Monday, despite a sharp rebound on Friday, failing to prevent a new weekly loss in the index.

At around 2:30 pm Greenwich Mean Time, the Dow Jones Index was 0.19%, the Nasdaq was 0.22%, and the S & P 500 was 0.15%.

After a nightmare week on Friday, Dow Jones rose 1.47% to 32,196.66 points. The Nasdaq index rose 3.82% to 11,805.00 points. The broader S & P 500 index rose 2.39% to 4,023.89 points.

In the context of central bank tightening of financial conditions, and while threats to growth have accumulated, the location of New York has fallen for the Dow Jones for the seventh straight week, sixth for the S & P 500.

Nasdaq, which concentrates technology stocks, has fallen 27% since its peak at the end of 2021, while the S & P 500, the most representative index in the US market, has fallen 16%.

“Risk aversion is a protracted feeling on Wall Street on Monday,” Wells Fargo analysts said in a note. “Concerns over the outlook for global economic growth continue to weigh on confidence,” they added.

Investors were digesting disappointing data, especially from China. In China, retail sales fell the most in the two years of May, and the unemployment rate soared.

The bad predictions of the European Commission in the euro area have not been overlooked. The 2022 economic growth forecast fell 1.3 points to 2.7%, and the inflation forecast rose 3.5 points to 6.1%. War in Ukraine.

In addition, on the US side, manufacturing indicators in the New York region fell sharply, showing a much more serious reduction in activity than expected. The Federal Reserve’s Empire State Barometer plummeted by 11.6 points, indicating a slump in business morale.

In addition to feeling depressed, former Goldman Sachs boss Lloyd Blankfein said in an interview on Sunday that he needed to prepare for a recession.

Not counting the comments of former Federal Reserve Chairman Ben Bernanke on Monday’s channel CNBC, the central bank thought it was an “error” because it was slow to respond to inflation. .. ..

Yields on 10-year Treasuries fell slightly from 2.91% on Friday to 2.86% as bond prices rose more demanding. This reflects investor concerns about the possibility of a recession.

Probability is that Twitter titles fell 5.24% to $ 38.58, below the level at which Elon Musk revealed that it had acquired a stake.

This action was worth $ 39.31 when Tesla’s boss announced that he held 9.2% of the capital, and a few days later he developed an offer of $ 54.20 to the group, worth about $ 44 billion.

Since then, the boiling billions of billionaires have been postponed and seem to be dragging action down.

Bidding continued, centered on Spirit Airlines (+ 11% to $ 18.85). JetBlue Airlines (-3.33% to $ 9.73), a low-cost American company, has announced that it will launch a hostile takeover bid (OPA) against rival Spirit Airlines. It rejected the previous friendly offer in favor of the merger with Frontier Airlines (+ 6.65% to $ 9.30).

JetBlue offers Spirit Airlines a price of $ 30 per share. This is $ 3 cheaper than the first approach.

Among the company’s performance, this week was expected to be a celebrity in the distribution sector at Wal-Mart, Target and The Home Depot.

Nasdaq

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