The New York Stock Exchange ended in the red
The New York Stock Exchange lost nearly 0.20%, the Nasdaq index, with a strong technological composition, gave up 0.72%, and the broad S&P 500 index lost 0.30%, according to final results.
“It was an indecisive session, as last week’s momentum (…) ran out of steam,” commented Schwab analysts in a note.
“The +rally+ (buying movement) of last week was very important. It could not continue like that”, agreed Gregori Volokhine, of Meeschaert Financial Services.
For the manager, the fact that the figure for durable goods orders in the United States in May, published Monday, June 27, came out clearly higher than expected, at 0.7% increase against 0.1% expected, also played on the mood of operators.
“At the moment, we look at all the indications in connection with the inflation or with the slowdown of the economy”, he recalled. “But the figures were in the opposite direction. (…) It was a reminder that this economy is not coming to a sudden halt.
Subsequently, bond yields rose quite sharply, a sign that Wall Street expects interest rates to rise in the coming months. The yield on 10-year U.S. government bonds was thus 3.20%, compared with 3.13% on Friday, June 24.
“There were not too many questions to ask,” according to Gregori Volokhine. “When we saw the rates go up, we knew that the Nasdaq was going to go down”.
The giants of the electronic stock market, mostly technology stocks, retreated, from Amazon (-2.78%) to Alphabet (-1.62%) to PayPal (-2.24%).
In contrast, the health care sector did well, from Merck (+1.37%) to UnitedHealth Group (+2.02%).
As for other listed companies, Spirit Airlines fell (-7.95% to 22.57 USD) after a major consulting firm Institutional Shareholder Services (ISS) recommended that shareholders vote on Thursday in favour of the takeover by competitor Frontier (-11.20%).
The offer of the latter even raised on Friday, June 24, is significantly lower than that of JetBlue (+1.62%%) which, moreover, is entirely in cash, while that of Frontier is mostly in shares.
Online brokerage Robinhood took off 14% (to USD 9.12) on the strength of a Bloomberg report that cryptocurrency platform FTX was interested in a possible buyout.
One of FTX’s competitors, Coinbase, ended on a sharp decline (-10.76%), as well as Voyager Digital (-24.68%), listed in Toronto. The latter announced that the Singaporean alternative investment company Three Arrows Capital had defaulted on a loan of $ 350 million granted by Voyager.
Investors fled Digital World Acquisition Corp (-9.56% to USD 25.16), the listed vehicle that is to merge with Donald Trump’s new media group. The company said Monday, June 27, that the deal was the subject of a criminal investigation by federal authorities, who are considering a lawsuit.
The AMC movie chain jumped (+13.31% to USD 14.13), after a weekend that saw the movie Elvis do better than expected at the box office, matching Top Gun: Maverick, which crossed the USD 1 billion mark in worldwide revenues.