New York (awp/afp) – The New York Stock Exchange was trading in a mixed fashion on Tuesday shortly after opening, tense due to two poor indicators that raised concerns about the health of the American economy.
At around 2:15 p.m. GMT, the Dow Jones gained 0.03%, while the Nasdaq index dropped 0.24% and the broader S&P 500 index 0.17%.
On Monday, the Dow Jones and S&P 500 had recorded new closing records.
Wall Street opened in the green, boosted by announcements in China.
China’s central bank (PBOC) on Tuesday unveiled a series of measures intended to give a boost to the Chinese economy, which has been unable to rebound since the end of the coronavirus pandemic.
In particular, it lowered some of its rates, invited commercial banks to reduce the cost of mortgage credit for households and released an envelope to revive the stock markets.
The communication pleased Wall Street, even if, as Patrick O’Hare of Briefing.com pointed out, the New York market reacted less than other Western markets, which can be explained by the positive sequence of almost three weeks that the American stock market has just experienced.
“Anything that can restore confidence in China will help the global economy,” said Quincy Krosby of LPL Financial.
Chinese companies listed in New York stood out, notably Alibaba (+5.06%) and its e-commerce competitors PDD (+6.01%) and JD.com (+7.90%).
But the indices reversed a few minutes later, after the Conference Board’s monthly survey showed a drop in consumer confidence to 98.7 points in September, compared with expectations of 103.8 and 105.6 points the previous month.
The study noted rising concerns about employment and an unexpected rise in inflation projections.
More marginally, the manufacturing activity index in the Richmond, Virginia, region fell to its lowest level since the start of the pandemic.
Initially firm, bond rates have subsided. The yield on two-year US government bonds stood at 3.57%, compared to 3.57% the previous day at the close.
On the stock market, the holding company PVH (-0.37%), which controls the Calvin Klein and Tommy Hilfiger brands, suffered from the opening of an investigation by the Chinese Ministry of Commerce into its relations with suppliers from the People’s Republic.
Boeing fell (-1.10%) after the IAM mechanics union rejected the terms of the new proposal made by the manufacturer on Monday, which provides for a 30% increase in salaries over 4 years, compared to 25% initially.
The IAM argued that these conditions had not been discussed and dismissed the aircraft manufacturer’s ultimatum for Friday.
Visa was shunned (-3.99%) after several US media outlets reported that the US Department of Justice would file civil proceedings for abuse of dominant position against the credit card giant.
Its major competitor Mastercard (-1.52%) was also in the red.
Oil stocks benefited from the recovery in the price of black gold, against a backdrop of stimulus measures in China. ExxonMobil (+0.39%), Chevron (+0.31%) and ConocoPhillips (+0.76%) were all in positive territory.
Agricultural and gardening machinery specialist Deere fell (-0.05%) after Republican presidential candidate Donald Trump threatened the group with 200% customs duties if it carried out its plan to relocate part of its production to Mexico.
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