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A rise in Boeing Co.'s shares helped support the Dow index on Thursday, but the broader market has depreciated following a survey suggesting a contraction in the US manufacturing sector, while bond yields in the United States long-term have again moved below short-term returns, suggesting that the economy was weakening. .
Some Federal Reserve officials have also disappointed investors hoping to have confirmation that policymakers will further reduce interest rates next month, but the focus will be Friday on a speech by the Fed chairman, Jerome Powell, at the Jackson Hole conference in Wyoming.
How are the main landmarks?
The Dow Jones Industrial Average
DJIA, + 0.19%
up 49.51 points or 0.2% to 26,252.24, driven largely by a 4.2% gain in Boeing shares. Meanwhile, the S & P 500
SPX, -0.05%
slipped 1.48 points, or less than 0.1%, to 2,922.95, while the Nasdaq composite index
COMP -0.36%
yielded 28.82 points to 7,991.38, down 0.4%.
The three benchmarks ended well after their worst levels of the session, after the Dow Jones dropped 186 points at one point.
Lily: Shares say the consumer is not as strong as government data suggests
What motivates the market?
Jackson Hole, Dallas Fed Chairman Robert Kaplan, said he is open to further interest rate cuts, but has not yielded to total support for further cuts in interest rates. rate.
However, Esther George, president of the Kansas City Fed, and Patrick Harker, president of the Philadelphia Fed, told CNBC that they wanted to keep interest rates at a stable level.
Of this group, only George is this year's electorate of the federal open market monetary policy committee of the Fed. However, their comments indicate a divergence of opinion on the monetary policy that Powell will have to reconcile at the next meeting of the Fed on 17 and 18 September.
Powell will deliver a well – attended speech on the challenges of monetary policy at 10:00 am Eastern time on Friday.
Stock investors were excited after 10-year US Treasury note yield
TMUBMUSD10Y, + 0.11%
briefly fell below that of 2-year Treasury bills
TMUBMUSD02Y, -0.54%,
still Thursday. This inversion of the yield curve is considered a precise predictor of recessions.
The fall in long-term yields came after IHS Markit published the latest reading of its Purchasing Managers' Index for the US manufacturing sector, which showed that plant activity fell by 49.9 percent over the previous year. August, from 50.4 in July to its lowest level in the last 10 years. the services sector slowed from 53.0 in July to 50.9 in August, its lowest level in 3 months.
"You had a couple of things that helped to reduce the markets this morning," MarketWatch Mike O'Rourke, chief markets strategist at JonesTrading, told MarketWatch. "You have the reversal of the yield curve, the yuan is still weakened overnight and at 9:45, we had the impression of manufacturing that was missing estimates and was lower at 50 ", he said.
Conference Board and labor market data are more optimistic, with a report on the index of advanced economic indicators up 0.5% in July to settle at 112.2, while data on new claims for unemployment benefits decreased from 12,000 to 209,000 during the week ended August 17. down four weeks, suggesting a continued strength of employment.
Elsewhere, the European Central Bank has alluded to a significant new stimulus package following the release of the minutes of its July 25 meeting, suggesting that policymakers consider a package of measures that would include a further reduction in policy and interest rates. new purchases of financial assets.
What stocks are under discussion?
Actions of Boeing Co.
BA, + 4.24%
Cai von Rumohr, an analyst, said the Federal Aviation Administration's certification flight for the beleaguered 737 MAX plane might be in four or six weeks, a boon for the aircraft manufacturer and the pressured defense since that fleet has was anchored around the world in March as a result of two fatal accidents.
Nordstrom Inc.
JWN, + 15.86%
Wednesday released its second-quarter financial results after the close, exceeding Wall Street's expectations in terms of revenue and earnings, although it has narrowed slightly its outlook for the full year. ;year. Retailer inventories rose 15.9% on Thursday.
Mastercard Inc.
MY, -0.44%
shares fell slightly by 0.4% after reporting that they had investigated a data breach of a loyalty program in Germany, which would have compromised personal information.
Actions of L Brands Inc.
KG, -3.49%
fell 3.5% after Victoria Secret's parent company released its second-quarter results on Wednesday night, below Wall Street expectations.
Actions of Hormel Foods Corp.
HRL, + 4.83%
gained 4.8% after the meat producer released its third quarter financial results on Thursday morning.
Actions of BJ Wholesale Club Holdings Inc.
BJ, + 17.16%
jumped 17.2% on Thursday, after the wholesaler posted second-quarter results above expectations, as store sales growth was up to expectations.
Splunk Inc.
SPLK, -7.82%
also posted a profit after Wednesday's trading close, exceeding analysts' expectations for adjusted earnings. The cybersecurity firm also announced the acquisition of the $ 1.05 billion SingalFX Cloud Surveillance Company. Shares closed down 7.8%.
How are other markets traded?
Asian equities traded mixed overnight, China's CSI 300
000300, + 0.31%
slightly up 0.3%, Hang Seng Hong Kong
HSI, -0.84%
0.8% decline and Japan's Nikkei 225
NIK + 0.07%
increased by less than 0.1%.
In Europe, stocks traded mainly downwards, with the Stoxx Europe 600
SXXP, -0.40%
down 0.6%.
In commodities markets, the price of US crude oil
CLV19, + 0.29%
was on track to book its first weekly shift in three weeks, while gold prices
GCZ19, -0.13%
finished $ 7.20, or 0.5%, to be paid at $ 1,508.50. The US dollar
DXY, + 0.04%
slightly down on its major counterparts.
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