The Dow Jones lost 0.47%, the Nasdaq index gained 0.57% and the S&P 500 index, 0.25%.
The New York Stock Exchange opened on a mixed note on Tuesday, digesting Donald Trump’s announcement which promises significant customs duties for several major trading partners of the United States, but without being frankly alarmed.
Around 2:50 p.m. GMT, the Dow Jones fell 0.47%, the Nasdaq index gained 0.57% and the S&P 500 index, 0.25%.
President-elect Donald Trump indicated Monday that he intended to impose customs duties of 25% on products imported into the United States from Canada and Mexico, as well as add 10% to customs taxes for goods from China.
He justified this decision by the need to push these three countries to do more to fight against drug flows from their territory to the United States.
“The enthusiasm (born from the presidential election) has not completely evaporated, but it has calmed down a little this morning after this new decision by President-elect Trump,” Patrick O’ commented in a note. Hare, from Briefing.com.
However, the New York market showed no sign of nervousness. The VIX index, which measures investor anxiety, was even down.
Another indicator, most shares of Canadian, Mexican or Chinese groups were moving within tight margins, often on the rise.
“The market is waiting for more clarity” on these new customs duties, explained Adam Sarhan, of 50 Park investments.
“We know that new customs duties are coming, but we do not yet know what they will be exactly,” continues the manager.
“As long as it is not completely different from what the market expects, it will live with it, because the (American) economy will continue to grow, as will corporate profits,” describes Adam Sarhan. “This is why stocks remain on an upward trend.”
This news also left the bond market relatively unmoved. The yield on 2-year US government bonds was unchanged at 4.27%.
Wall Street was awaiting, later in the day, the publication of the minutes of the last monetary policy meeting of the American central bank (Fed).
On the market, the videoconferencing platform Zoom fell (-5.07%) despite results above expectations and the increase in its annual forecasts. The group was subject to profit taking after having climbed more than 60% since mid-August.
Having become part of everyday language since the coronavirus pandemic, the company intends to push the spotlight on artificial intelligence, in particular with its new virtual assistant AI Companion.
The Amgen laboratory was slipping (-9.87%), despite the results of its clinical study on the anti-obesity MariTide, which showed a weight loss of around 20% after 52 weeks. Investors hoped for more and are nevertheless doubtful about the chances of success of this new treatment in an already very crowded market.
The department store brand Kohl’s fell (-20.66%) after recording its tenth consecutive quarter of decline in turnover. “Kohl’s is in bad shape, what’s more in a difficult market,” marked by consumer caution, commented Neil Saunders of GlobalData. “The result is they get punished.”
The group also announced the departure, in January, of its managing director, Tom Kingsbury.
Still in distribution, the consumer electronics store chain Best Buy also missed the mark (-9.31%) and lowered its annual forecasts, with general manager Corie Barry reporting “more demand lower than expected.
The ready-to-wear house Abercrombie & Fitch suffered profit taking despite better than projected results, driven in particular by its Hollister brand.
