The New York Stock Exchange ends in the red

 

The Dow Jones index ended down 0.81% at 32,910.90 points.

The Nasdaq index, the technology exchange, gave up 0.73% to 12,086.27 points while the S&P 500, the most representative index of the U.S. market, dropped 1.08% to 4,115.77 points.

“The combination of rising crude oil prices and rising bond yields is worrisome,” summarized Art Hogan of National Securities, noting that investors had extrapolated earnings warnings from department store chain Target as “a sign of weakening demand.”

Markets were also awaiting the release of the U.S. Consumer Price Index (CPI) on Friday, June 3.

The indices, which were sailing in a scattered order in the first part of the session, floundered after statements from the White House.

“We expect a high inflation figure,” White House spokeswoman Karine Jean-Pierre told reporters during a flight on Air Force One to Los Angeles, California, where Joe Biden will attend the Summit of the Americas on Thursday, June 9, which is supposed to revive the relationship with Latin America.

The CPI may have jumped 0.7% last month, according to analysts’ projections, compared to 0.3% in April. Year-over-year inflation was 8.3% in April.

Yields on 10-year Treasury bonds, which react to the prospect of rate hikes, were back above 3%.

As for crude oil prices, which are at the heart of the price hike, they approached their highest closing level in 13 years for the U.S. WTI variety, while Brent crude oil was again approaching its March high.

These inflationary jolts added to the gloomy picture of global growth.

After the World Bank’s downward revision of growth on Tuesday 7 June, it was the OECD’s turn to slash its projections, forecasting only 3% growth in global economic activity this year, compared with 4.5% for its previous assessment.

As for the US GDP in the second quarter, according to the Atlanta Fed’s highly regarded projection (GDPNow), it could grow by only 0.9% compared to a previous forecast of 1.3%.

The Fed’s Monetary Committee meets next Wednesday, June 15, and is expected to raise interest rates by another half percentage point.

Finally, to add to the chagrin of the market, the head of the SEC, the US stock exchange authority, Gary Gensler, unveiled a reform project that will affect the powerful intermediaries handling massive order flows, which he said lack transparency.

All sectors of the S&P ended the session down, except energy (+0.15%). Real estate (-2.43%) and materials (-2.10%) led the decline.

The shares of several retail chains lost momentum as Lowe’s (-1.64%), Best Buy (-1.57%) or Bed Bath and Beyond (-3.21%).

The suspense continued in the battle between Frontier Airlines and JetBlue for the acquisition of low-cost airline Spirit.

Spirit (-2.25% to 22.16 USD) postponed from Friday to June 30 its general meeting during which the company intends to ask for the approval of its investors for a combination with Frontier (-3.55%) which values the carrier at about 2.9 billion USD, or about 25 USD per share.

The delay comes days after JetBlue (-4.21%) raised its hostile takeover offer to USD 31.50 per share.

Streaming access company Roku surged more than 9% to USD 101.88 as news reports hinted at interest from Netflix (+2.21%) in buying it.

The stock of Novavax laboratories, whose vaccine against the coronavirus was recommended by the American health authorities the day before, climbed 5.41% to 50.11 USD.

 

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The New York Stock Exchange ends in the red

The Dow Jones index ended down 0.81% at 32,910.90 points. The Nasdaq index, the technology exchange, gave up 0.73% to 12,086.27 points while the S&P 500, the most representative index of the U.S. market, dropped 1.08% to 4,115.77 points. "The combination of rising crude oil prices and rising bond yields is worrisome," summarized Art Hogan of National Securities, noting that investors had extrapolated earnings warnings from department store chain Target as "a sign of weakening demand." Markets were also awaiting the release of the U.S. Consumer Price Index (CPI) on Friday, June 3. The indices, which were sailing in a scattered order in the first part of the session, floundered after statements from the White House. "We expect a high inflation figure," White House spokeswoman Karine Jean-Pierre told reporters during a flight on Air Force One to Los Angeles, California, where Joe Biden will attend the Summit of the Americas on Thursday, June 9, which is supposed to revive the relationship with Latin America. The CPI may have jumped 0.7% last month, according to analysts' projections, compared to 0.3% in April. Year-over-year inflation was 8.3% in April. Yields on 10-year Treasury bonds, which react to the prospect of rate hikes, were back above 3%. As for crude oil prices, which are at the heart of the price hike, they approached their highest closing level in 13 years for the U.S. WTI variety, while Brent crude oil was again approaching its March high. These inflationary jolts added to the gloomy picture of global growth. After the World Bank's downward revision of growth on Tuesday 7 June, it was the OECD's turn to slash its projections, forecasting only 3% growth in global economic activity this year, compared with 4.5% for its previous assessment. As for the US GDP in the second quarter, according to the Atlanta Fed's highly regarded projection (GDPNow), it could grow by only 0.9% compared to a previous forecast of 1.3%. The Fed's Monetary Committee meets next Wednesday, June 15, and is expected to raise interest rates by another half percentage point. Finally, to add to the chagrin of the market, the head of the SEC, the US stock exchange authority, Gary Gensler, unveiled a reform project that will affect the powerful intermediaries handling massive order flows, which he said lack transparency. All sectors of the S&P ended the session down, except energy (+0.15%). Real estate (-2.43%) and materials (-2.10%) led the decline. The shares of several retail chains lost momentum as Lowe's (-1.64%), Best Buy (-1.57%) or Bed Bath and Beyond (-3.21%). The suspense continued in the battle between Frontier Airlines and JetBlue for the acquisition of low-cost airline Spirit. Spirit (-2.25% to 22.16 USD) postponed from Friday to June 30 its general meeting during which the company intends to ask for the approval of its investors for a combination with Frontier (-3.55%) which values the carrier at about 2.9 billion USD, or about 25 USD per share. The delay comes days after JetBlue (-4.21%) raised its hostile takeover offer to USD 31.50 per share. Streaming access company Roku surged more than 9% to USD 101.88 as news reports hinted at interest from Netflix (+2.21%) in buying it. The stock of Novavax laboratories, whose vaccine against the coronavirus was recommended by the American health authorities the day before, climbed 5.41% to 50.11 USD.
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