The New York Stock Exchange catches its breath after an exciting month of July

The New York Stock Exchange evolved, volatile, modestly in the green after the opening on Monday, following a good month of July, its best month of the year, investors still awaiting many results and especially the figures of employment on weekends. While the indices had started in the red, the Dow Jones grabbed 0.20%, the Nasdaq 0.33% and the S&P 500 advanced 0.13%.

Friday, the Dow Jones index had gained 0.97% to 32,845.13 points, signing a rise of almost 7% over the month. The Nasdaq had jumped 1.88% to 12,390.69 points, a jump of more than 12% in July. And the broader S&P 500 index advanced 1.42% on Friday to 4,130.29 points, up more than 9% over the month.

“The month of July was driven by better than expected results (…) and by expectations of inflation which should slow down”asserted Art Hogan of B. Riley Wealth in a note.

For Patrick O’Hare of Briefing, “the market must prove that it can still transform the July test”. “Usually the first day of a new month is quite positive as new money is thrown in, but given the magnitude of the gains seen in July, investors are hesitant”wrote the analyst at the opening.

Oil is falling

Markets also seemed to be revisiting their interpretation of last week on the US central bank’s (Fed) inflation strategy going forward. After another 75 basis point rate hike on Wednesday and President Jerome Powell’s press conference, investors focused on comments suggesting the pace of monetary tightening could “slow down to a certain point”. But this weekend, Minneapolis Fed Chairman Neel Kashkari said to himself “surprised by the interpretation of the markets”. He insisted on the Monetary Committee’s unanimous determination “to bring inflation down to 2%” and indicated that we “was far”.

In the news, investors were also watching the OPEC + meeting scheduled for Wednesday to find out if oil producers could further open the floodgates of black gold, after President Joe Biden’s controversial trip to Saudi Arabia.

At the end of the week are expected US employment figures for July which should indicate whether the economy is slowing, while second quarter GDP contracted (-0.9%). The projections count on 250,000 job creations after 372,000 in June and on a stable unemployment rate at 3.6%.

Boeing takes off with the takeover of 787s

Another 150 S&P 500 companies are due to report results this week. Among them Uber, Caterpillar, Eli Lilly, Starbucks.

Boeing climbed 4.54% as the US air authority FAA is close to giving the green light to the resumption of deliveries of the long-haul 787, more than a year after the discovery of several manufacturing defects . The certification plan for the device has been approved but deliveries are not yet imminent, said a source familiar with the matter.

The titles of the oil groups fell in the wake of a fall in the price of the barrel. Exxon, ConocoPhilips lost more than 2%, Chevron -1.84%.

On the bond market, ten-year rates were stable at 2.63% against 2.64% on Friday.

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