Wall Street hesitates after disappointing clues

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France Media Agency

At 10:15 a.m., the Dow Jones Star Index was down 0.25% at 32,872.30 points, after a record close the day before. The S&P 500 extended index gained 0.25% to 3978.71 points, after also a record.

The technology-intensive NASDAQ, which had rebounded the day before after struggling in previous weeks because of the rise in bond rates, continued its rise on Tuesday. It was up 0.78% to 13,562.42 points.

Yields on 10-year Treasuries stabilized at 1.59% from 1.61% on Monday.

So-called growth technology stocks “started the year with a poor performance compared to so-called value stocks,” said Patrick O’Hare of Briefing.com.

“There may be opportunistic purchases that want to take advantage of this gap” between the values ​​of the new and the old economy. Which made the NASDAQ soar.

The market was also digesting two disappointing indicators for February, albeit caused by the cold snap that paralyzed part of the country that month.

Retail sales fell sharply in the United States last month, falling 3% from January, when analysts expected a decline of only 0.6%.

The month of February was marked by very bad weather conditions in part of the country. Part of Texas was paralyzed for several days by a polar cold snap and heavy snowfall, leaving thousands of residents without electricity.

These conditions also had an impact on industrial production, which fell 2.2% over the month, again against a 0.6% decline expected by analysts.

“These data should not make a lot of noise in the market,” said Patrick O’Hare, as investors “know that stimulus checks will soon land in bank accounts and will certainly boost sales in March and April ”.

Wall Street was also watching for the outcome of the Fed’s monetary meeting on Wednesday.

The central bank is expected to reiterate the status quo, with overnight rates at zero, despite inflation expectations in the market reflected by rising bond rates.

But investors will be on the lookout for any upward revision to growth forecasts and President Jerome Powell’s comments at a press conference.

Among the shares, that of Moderna, whose vaccine has started trials on children, climbed 5.23%, followed by Novavax (+ 4.30%) whose vaccine project was the subject of a new British study showing strong efficacy.

The speculative action of GameStop fell by 18%, while that of the AMC cinema chains, also sought after by stock marketers, dropped 9.76% after a sharp increase the day before.

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