(reuters) – the new york stock exchange ended lower tuesday, held back by the fall for the second consecutive session, general electric and the sharp decline in oil prices, which has affected the values of energy.
the uncertainty about the timing of tax cuts before the u.s. congress and doubts about the continuation of the rise in rates by the federal reserve are also of concern, including the impact on the banking stocks.
the decline of apple (1.51%), market capitalization in the world, has also affected the trend.
the dow jones industrial average was 30.23 (- 0.13%), 23.409,47. the standard & poor’s 500, broader and main point of reference for the investors sold 5.97 points, or 0.23%, 2.578,87. the nasdaq composite, a high technology content, has also done some 19723 (- 2.2%) 6.737872.
while the results of business season ends, the market seems to catch his breath after a record last week.
“there is no catalysts, for the time being, there are concerns about whether the federal reserve has more ammunition to continue to raise interest rates,” said jeff zipper, director of investments at private client reserve in us bank.
the flattening of the yield curve is a source of concern to the market. the market does not believe that we will see the growth needed to make the curve more steep, “he added.
the narrowing of the performance gap between u.s. treasury debt in the short and long term concerns that the fed could not continue rising interest rate cycle without having to rein in inflation and growth in the long term.
the flattening of the yield curve is a threat to the prospects for the benefit of the banks. goldman sachs sold 1.26% and was the main contributor to the decline in the dow jones industrial average. jpmorgan, citigroup and bank of america fell by around 0.6%.
the plan is not as ambitious as espÉrÉ ge
the largest decline was experienced by the sector (1.54%). with the decline of the order of 1.5% of the price of oil as a result of a reduction of the international energy agency (iea) for its world demand forecast for this year and next.
the individual values, general electric has continued to fall, with a decrease of $5.89%, 17.9%, after having already dropped more than 7% the day before.
the extensive reorganization announced on monday by the new ceo john flannery to simplify and reduce the size of the group was insufficient to investors and brokers, many of whom have lowered their price target on the way while he was already down more than 40% since the beginning of the year.
john f, an analyst at deutsche bank, with a recommendation to “sell” on the title, ge was disappointed by sticking to his plan of 20 billion ($17 billion) for the disposal of assets, so that some had hoped for an outright dismantling of the portfolio.
the reduction by half of the dividend is higher than expected, and could, in the short term to keep the pressure on the stock market as the important part, more than 40 per cent, according to john i, individuals among the shareholders of ge.
stephen tusa, an analyst at jp morgan, said for his part that the conservation measures announced by the group are not up to expectations.
the automotive supplier advanced auto parts, on the other hand, pleasantly surprised investors with the confirmation of its annual objectives and, above all, results exceeded the expectations he had failed in the previous four quarters. the title is out of 16.34%, the highest increase of the s & p 500.
to a lesser extent, the better than expected home depot, first world diy teaching have been recognized by an increase in the capacity of 1.64%, better performance of the dow jones industrial average.
(sruthi shankar to bnagalore, bertrand boucey for service in french)
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Translated by forexguides.info Team