Wall Street concludes a volatile week in the red

Published on : 15/01/2021 – 22:54Modified : 15/01/2021 – 22:52

New York (AFP)

The New York Stock Exchange ended a volatile week in the red on Friday, during which the Dow Jones experienced three straight sessions of decline for the first time in more than two months.

According to the final results, the Dow Jones Index index lost 0.57% to 30,814.26 points. The Nasdaq dropped 0.87% to 12,998.50 points and the S&P 500 extended index dropped 0.72% to 3,768.25 points.

The market has remained in negative territory “during the last session of a bumpy week that heads into a three-day long weekend,” Schwab analysts said.

On Monday, Wall Street will be closed to observe the “Martin Luther King Day” holiday. It will continue on a tense week in Washington with the inauguration of President Joe Biden on Wednesday amid fears of violent protests after the invasion of the Capitol on January 6.

Over the week, the Dow Jones, which for the first time in two and a half months has posted three consecutive sessions of losses, is down 0.91% while the Nasdaq and the S&P have dropped 1.50%.

Joe Biden on Thursday unveiled a new $ 1.9 trillion emergency stimulus package with checks to families, funds to reopen schools, money to speed up tests and vaccines and cash for small businesses.

The market, which had already strongly anticipated the likelihood of a new stimulus package, largely ignored this good news for the economy.

It remains to convince the elected representatives of Congress to unblock this emergency plan. Not to mention that, according to analysts at Wells Fargo, enthusiasm for this influx of liquidity in prospect “has been dampened by the idea that with this increase in public spending will undoubtedly come a rise in taxes”.

Friday marked the start of the quarterly earnings season, starting with banks.

While JPMorgan (whose stock closed down 1.79%) posted record 4th quarter earnings, Citi (-6.93%) and Wells Fargo (-7.83%) results were more mixed .

On the economic data front, retail sales in December in the United States, impacted by the pandemic, were very disappointing, falling more than expected (-0.7% compared to November). In addition, consumer confidence, as measured by the University of Michigan, declined further in January.

Industrial production, on the other hand, rebounded in December, rising 1.6% from November, mainly due to the onset of winter and heating costs. Over one year, it is down 3.6%.

In terms of actions, Pfizer did not suffer too much from the announcement of delays in delivery of its anti-Covid vaccine in Europe (-0.14%) but its partner BioNtech on the other hand lost more than 4% on the market. New Yorker.

ExxonMobil, which is the subject of an investigation by the American Stock Exchange Constable, according to the press, because it is suspected of having overvalued an oil basin, has dropped 4.81%.

Fiat Chrysler USA (FCA) has dropped 4.93% while sales of French PSA, which seals its union with FCA on Saturday to become Stellantis, fell by almost 30% in 2020.

Walmart lost 1.59% after news of the departure of Marc Lore, head of the retail giant’s e-commerce department.

The title of Petco, the American chain of stores of pet products entered with fanfare on the Stock Exchange the day before, dropped ballast (-5.75%) but remains well above its IPO price.

In the bond market, the 10-year yield on Treasury bills fell sharply to 1.0869% from 1.1292% the day before.

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