NEW YORK (Agefi-Dow Jones)–The New York Stock Exchange opened lower on Friday after the publication of monthly employment figures in the United States and a further decline in banking stocks.
The Dow Jones index (DJIA) yielded 0.1% at the start of the session, at 32,215 points, while the banking sector is again under pressure in the wake of the setbacks of SVB Financial. The S&P 500 fell 0.4% to 3,905 points, and the Nasdaq Composite dropped 0.8% to 11,255 points.
The United States created 311,000 net jobs last month, the Labor Department announced on Friday, against 225,000 expected by economists polled by the Wall Street Journal. This high number, however, marks a slowdown compared to the 504,000 jobs created in January. The unemployment rate also increased, to 3.6% from 3.4% in January.
The average hourly wage also rose by only 0.2% in February compared to the previous month, while the market was expecting a rise of 0.4%.
These figures were eagerly awaited to try to anticipate the next decisions on the rates of the Federal Reserve (Fed), which said it was ready to tighten its policy again if prices and employment did not show signs of slowing down. expected.
“I see more good news than bad,” said Art Hogan, chief strategist at B Riley Wealth Management. “The average hourly wage has been lower than expected, unemployment has increased and the participation rate continues to improve, which is a very positive point. The report published [vendredi] will likely support markets and could influence the extent of the Fed’s rate hike at its next meeting.”
On the bond market, the decline in yields accelerated after the publication of the employment report. The ten-year US Treasury bond rate fell 15 basis points to 3.757%. That of the two-year Treasury title fell 24 basis points to 4.637%.
The trend towards wage moderation has led investors to revise their rate expectations. In the futures markets, the probability of a 50 basis point hike in US key rates in March is now estimated at 42.5%, against 68% on Thursday, according to the CME’s FedWatch tool.
VALUES TO FOLLOW:
-SVB Financial (suspended) has hired advisers to find a buyer as the U.S. bank faces a liquidity crunch, CNBC reported on Friday, saying the bank was unable to raise new funds. SVB shares fell 60% on Thursday.
-The four banking giants JPMorgan, Bank of America, Citigroup and Wells Fargo, wiped out nearly $52 billion in cumulative market capitalization on Thursday. BofA fell 2.6% at the start of the session, Citi lost 1.7%, Wells Fargo dropped 1.6%. JPMorgan won, however, 1.1%.
-Oracle shares shed 3.7% as the professional software maker posted revenue that was up but below expectations in the third quarter of its staggered fiscal year.
-Gap drop of 4.9%. The clothing chain reported a higher-than-expected loss in the last quarter as its sales fell 6% over the period.
– Walt Disney (-1.8%) could raise the prices of its Disney+ platform again and cede the rights of certain programs to competitors in order to achieve profitability in streaming, indicated the group’s general manager, Robert Iger , at a media and telecoms conference organized by Morgan Stanley in San Francisco.
-Bureau de New York, The Wall Street Journal
(French version Jérôme Batteau, Thomas Varela) ed: LBO – VLV
Agefi-Dow Jones The financial newswire
Dow Jones Newswires
March 10, 2023 10:15 ET (15:15 GMT)
