:format(jpg):watermark(cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/EF665FJJCNGHFFHRRMWR57UKMI.png,0,30,0)/cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/DK5FH37YAJC4BCP3HW3JPHMGE4.jpg "New York Stock Exchange seeks direction, monitoring Ukraine crisis")
The New York Stock Exchange was on the rise, in search of breath on the eve of a long weekend, for lack of major developments in the Ukrainian crisis or new information on the trajectory of the American central bank (Fed). Around 3:05 p.m. GMT, the Dow Jones gained 0.14%, the Nasdaq index gained 0.26%, and the broader S&P 500 index, 0.29%. Thursday, the indices had stalled at the end of the session, weighed down by the escalation of the Ukrainian crisis.
The announcement of a meeting between the heads of Russian and American diplomacy next week, provided that Ukraine is not attacked by then, had oriented the indices well before the opening, according to Patrick O’Hare, from Briefing.com.“But it would be asking a lot of buyers to remain convinced before a three-day weekend, as the geopolitical situation remains fluid and unresolved”, he tempered, in a note. US markets will be closed on Monday, a US holiday (Presidents Day).
Geopolitical uncertainty and the lack of visibility on the monetary trajectory of the American central bank (Fed) “made investors nervous”commented Art Hogan, head of strategy for National Securities. “And we don’t have a lot of news to sink our teeth into on those two fronts.”The VIX index, which measures market volatility and was already at a high level, was rising slightly.
Investors play it safe
Operators avoided risk-taking and the migration to bonds continued. The rate of 10-year US government bonds continued to fall, to 1.93% against 1.96% the day before.
The easing is brutal, because the rate had reached 2.06% on Wednesday, its highest level since the end of July 2019. Bond rates are moving in the opposite direction to their prices.
The expiration of options (financial instruments to buy a share at a given date and price) in February, Friday, was likely to promote a little more market movements, warned Art Hogan.
The indices having fallen significantly over the last five sessions (-2.63% for the Dow Jones and -3.30% for the Nasdaq), Wall Street could benefit from a wave of purchases to cover short sales, according to the analyst.“There is a chance to see an inflection” up on Friday, he said.
Some solid drops
The semiconductor manufacturer Intel fell (-4.60% to 45.38 dollars), the day after a presentation to investors during which the company indicated that it did not expect a significant improvement in its margins before 2025. Harassed by the competition, Intel is seeking to reposition itself in the microprocessor market by investing heavily in new factories in Europe and the United States.
The DraftKings online betting platform fell (-16.73% to 18.37 dollars) despite quarterly results that exceeded expectations. The group has revised its revenue forecast for 2022 upwards, but its operating profit estimate has disappointed analysts, who are worried that the platform will remain heavily in deficit.
The American chicken meat packaging and processing group Pilgrim’s Pride was fled (-12.49% to 24.35 dollars) after the renunciation of the Brazilian giant of the JBS sector to acquire the balance of the titles that it did not yet hold (he already controls about 80% of the capital). Pilgrim’s board of directors had rejected two takeover offers, saying they did not value the group satisfactorily.
The specialist in construction machinery, tractors and gardening equipment Deere was in reverse (-1.95% to 373.10 dollars) despite sales and profit exceeding expectations, accompanied by an upward revision of its revenue forecast for the current year.
The Moline (Illinois) group nevertheless saw its profit decline and reported rising costs, due in particular to wage increases after a strike this fall.
The DuPont de Nemours conglomerate benefited (+2.78% to 81.95 dollars) from the sale, for 11 billion dollars, of the majority of its mobility and materials division to the American company Celanese, which specializes in chemicals.
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