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Home » Wall Street: The Dow Jones opens lower despite Apple’s appeal

Wall Street: The Dow Jones opens lower despite Apple’s appeal

Stocks are rising, in large part due to a recovery in the tech space. Last week was the best so far for the S&P 500 this year, hitting its highest level since August. The NASDAQ has now posted six straight weeks of success. It remains to be seen whether shares can gain further momentum from Friday, when a strong May jobs report and the easing of the debt ceiling sent shares higher.

This Monday, the most important Wall Street indices start with doubts and are characterized by caution. The mixed tone prevails and the DOW JONES starts down 0.05% at 33,745 while the S&P 500 is up 0.12% at 4,287 and the NASDAQ rises composed increases by 0.04% to 13,245.6 points.

In the Dow Jones, Chevron (1.09%), Apple (1.06%) and Verizon Comm (0.85%) posted the largest gains. On the other hand, values ​​fall the most 3M Co. (-1.31%), Salesforce (-1.30%) and Boeing Co (-1.12%).

The current scenario, once the US debt ceiling “drama” after President Biden’s sanctioning of the Tax Responsibility Act last Saturday and the quarterly earnings season is virtually over, will be the focus of the actions of the major western central banks , who will meet their monetary policy committees in the coming weeks. Hence the caution…

In that sense, the strong employment report The study published on Friday found that The US economy remains very resilientto overcome both high inflation and interest rate hikes. This has led analysts to bet on a “soft landing” or even a “no landing” scenario, in which the US would avoid a recession.

“Despite the growing body of leading indicators pointing to an imminent recession, ongoing strength in the job market and stubborn consumer spending continue to propel the startup forward,” said Mace McCain, chief investment officer at Frost Investment Advisors. “We don’t think the economy can slide into recession until employment falls significantly,” he added. “The unemployment rate has skyrocketed with every drop in job vacancies since the 1950s, but [todavía] That cycle did not happen. This trend could continue and thus delay the recession.

For its part, Link Securities believes that despite the very positive employment numbers, the Fed will be betting on a “stop on the road” in its rate-hike process. “We’re not ruling out more rate hikes.”

On a business level, Apple will take center stage this Monday as the tech giant prepares to unveil a new “mixed reality” headset it’s been preparing for the past seven years at the Worldwide Developers Conference, which starts today in Cupertino. , California. Apple’s headphones reportedly feature high-resolution displays right in front of the user’s eyes. But it could also allow users to see and interact with the real world through powerful cameras mounted on the device, a trick sometimes called pass-through or mixed reality.

Palo Alto Net will replace Dish Network in the S&P 500 effective June 20.

Valley Natl Banc received an upgrade from JPMorgan, upgrading the stock from Neutral to Overweight. The Wall Street firm said concerns about Valley National’s commercial real estate were “overstated” because Manhattan offices account for less than 1% of its loans.

Morgan Stanley predicts stock market slumps

We learned today that the S&P 500 index will suffer in the coming months, according to Morgan Stanley strategists led by Graham Secker. They expect the economic slowdown and reduced market liquidity to trigger the correction, but expect the stock market to rebound towards the end of the year.

“Year-to-date equities resilience is likely to be increasingly at risk over the next three months as economic momentum and liquidity conditions continue to tighten,” Secker said in a note to clients. “We see cracks appearing.”

Morgan Stanley strategists expect corporate earnings to cap rally in US equity earnings. Specific, They expect earnings per share in the S&P 500 to fall 16% this year.

This contrasts with Goldman Sachs’ optimistic forecasts of modest growth. “We believe the downside risk to US earnings is significant,” Morgan Stanley experts say.

Major recovery in crude oil

inside oil market, Prices rose in today’s session after Saudi Arabia, the world’s top exporter, pledged to cut production by another million barrels a day from July, offsetting macroeconomic woes that have weighed on markets. The raw Brent Benchmark in Europe rebounds 2.56% to hit $78.08 a barrel while oil futures West Texas American rose 2.80% to $73.75.

Saudi Arabia is set to cut its production in July under a broader OPEC+ production cap deal as the group grapples with falling oil prices and a looming oversupply.

In the case of fixed-income securities, the us referral bonus At ten years, it offers a yield in the secondary market of 3.755%.

In the EUR/USD pair, the euro fell 0.28% against the dollar, leaving the exchange rate for each shared currency remaining at $1.0680, while gold futures fell 0.5% to $1,959.25 per ounce fell.

In the cryptocurrency market, Bitcoin loses the 27,000 mark again and is trading at $26,694.4 today, down 1.90%.

In the US, in the today’s schedule The main indicators to be released are the final readings of the US Services Sector PMIs and the US Services Sector ISM.

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