Published on : 22/01/2021 – 22:56
New York (AFP)
The New York Stock Exchange ended Friday in disarray, concluding without direction a week marked by the inauguration of Joe Biden as President of the United States and new records for major stock indexes.
The Nasdaq, driven by big names in tech like Apple, hit a new high at 13,543.06 points, up 0.09%.
The Dow Jones Industrial Average, on the other hand, fell 0.57% to 30,996.98 points, as did the broader S&P 500 index, which lost 0.30% to 3,841.47 points.
Over the week, the Dow Jones took 0.6%, the Nasdaq rose 4.2% and the S&P 500 2%.
According to Patrick O’Hare of Briefing, “the market is supported by strong momentum and the feeling that the situation will improve” both economically and on the health front.
Financial circles are enthusiastic about the emergency aid measures promised by the new tenant of the White House, which are supposed to revive consumption and boost investment.
However, there are still many reasons for concern for the market, foremost among which are the new restrictions being considered by several European countries to deal with the British variant of the coronavirus.
UK Prime Minister Boris Johnson said on Friday that this more contagious variant also appeared to be linked to higher mortality.
Investors are also wondering about a possible overvaluation of the stock market, which is growing faster than corporate profits, which suggests a downward correction.
“Despite all the rumors that the market is about to retreat, this is not happening,” notes Mr. O’Hare, however.
Among the values of the day, IBM plunged 9.91%. The computer giant on Thursday evening posted disappointing revenues for the last quarter of 2020 amid uncertainty, which discourages many customers from signing long-term agreements to purchase software.
Intel was down 9.29%. The manufacturer of technological chips, which announced Thursday evening of a record turnover in 2020, assured not to want to change its economic strategy, which augurs of potential tensions in 2021 with the financial activist Dan Loeb, who claims a split from the group.
The earnings season will continue next week on Wall Street, where Apple and Facebook will notably publish their quarterly health check.
Cruise line Carnival fell 2.51% after announcing the cancellation of its trips from the United States until the end of April and its Australian operations until May 19. European routes have also been canceled.
The American chain of video game stores GameStop saw its share skyrocket on Wall Street (+ 51.08%), probably driven by massive purchases of investors who bet down on the title.
Climate Real Impact Solutions jumped 64.92%, benefiting from the announcement of its imminent merger with EVgo, a Californian start-up specializing in the construction of electric charging stations.
Among the indicators, sales of second-hand homes in 2020 reached their highest level since 2006, the National Federation of American Real Estate Agents (NAR) announced on Friday.
© 2021 AFP