NEW YORK (Reuters) – The New York Stock Exchange closed lower Friday as solid overall numbers of US employment in July, clearing the way for a possible rate hike Federal Reserve next month.
This perspective weighing on the stock market, a rise in interest rates have the dual effect of increasing the cost of credit and reduce the attractiveness of equities relative obligations.
The Dow Jones lost 46.37 points, or 0.27%, to 17,373.38. The Standard & amp; Poor’s-500 yielded 5.99 point (-0.29%) to 2077.57 and the Nasdaq Composite fell 12.90 Points (-0.26%) to 5043.54.
The US economy created 215,000 jobs in July according to the monthly report from the Labor Department, or 8,000 less than expected on average by economists polled by Reuters, but the unemployment rate remained stable at 5.3%, its lowest level in seven years
The Fed has repeatedly said in recent months that it would start raising interest rates. – virtually zero since December 2008 – as soon as it was found a sustainable recovery of the economy. And recovery of the labor market is one of the key factors that she is studying to prepare his diagnosis.
“Everything seems perfectly in place for the Fed to start raising rates in September,” said Kim Forrest, senior analyst at Fort Pitt Capital Group.
“She has insisted she was dependent on economic indicators, so unless a huge bad news in the next 30 days, it is quite likely that it will start to increase rates. “
ENERGY SUFFERS, AMERICAN EXPRESS JUMPS
According to a survey by Reuters on Friday after the employment figures, major Wall Street banks expect always that the Federal Reserve raises rates in September but an increasing number of them think that this increase will be the only by the end of the year.
Seven of the ten major sector indices S & amp; P 500 finished the day down. The largest decline has affected the energy sector (-1.86%) continues amid falling oil prices. Exxon Mobil dropped 1.61%.
On the side of the news results, the specialist graphics cards Nvidia jumped 12.4% after its quarterly, marked by an unexpected increase in sales.
Among the other companies released Thursday or Friday, Groupon dropped 5.34% and 2.68% Hershey.
Three quarters of the companies making up the S & amp; P 500 have now presented their accounts and analysts now estimate that 1.6% earnings growth while sales should have declined 3 4% over one year.
American Express has also jumped 6.3%, the best performance of the Dow, according to information from Bloomberg under which the activist fund ValueAct invested one billion dollars in . a stake in the group’s capital
On the whole week, the Dow fell 1.79%, the S & amp; P 500 1.25% and the Nasdaq 1 65%.
(Tanya Agrawal and Noel Randewich, Marc Angrand for the French service)
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