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by Noel Randewich
NEW YORK (Reuters) – The New York Stock Exchange struggled to finish rising on Monday the first session of the second half of 2018, as the dynamism of technology stocks eventually outweighed fears worsening trade disputes between the United States and its partners.
The Dow Jones index managed to gain 35.77 points (+ 0.15%) at 24,307.18 after having spent almost the entire sitting in the red. Standard & Poor's 500, the largest and most important investor base, gained 8.34 points (+ 0.31%), to 2,726.71. The Nasdaq Composite, with a strong technological component, has risen from 57,383 points, or 0.76%, to 7,567,687.
Wall Street will know Tuesday a shortened session before being closed the next day 4 July because of the US national holiday.
The United States must implement Friday customs duties on 34 billion dollars (29 billion euros) of Chinese products, a prospect that fears a new sequence of reprisals and counter-reprisals
For its part, the European Union threatens to hit up to $ 294 billion of US exports and Canada has promised to tax $ 12.63 billion of US products in response to rights Donald Trump's Customs on Aluminum and Steel
"These customs duties imposed on an eye for an eye, tooth for tooth, will ultimately result in price increases for consumers and consumers. will probably be on demand for goods, "says Jack Albin, head of investment at Cresset Wealth Advisors.
He expects solid results from US companies in the second quarter but fears that their profits will be threatened over the rest of the year by the prospect of an ever tougher trade war.
TESLA MEETING
Economists at Oxford Economics believe that a general increase in tariffs is a "significant threat to global growth". "In a scenario of tariff escalation, our model indicates that world GDP could be slashed by up to 0.4 percentage point in 2019," they warn.
After a frank start to the meeting in the red, however, the New York Stock Exchange ended up completely erasing its losses following the publication of macroeconomic indicators deemed encouraging, with an unexpected acceleration of manufacturing activity in the United States in June, according to the ISM , and an increase in construction spending in May.
Among the few sectors to finish down, that of energy (-1.55%) suffered from fears about the evolution of the oil market: the Saudi Arabia and Russia increase production at the same time as trade tensions could drive down demand.
The technology sector (+ 0.99%), on the other hand, was driven by the growth of some heavy goods Apple (+1, 12%) and Microsoft (+ 1.42%), which supported the three major Wall Street indexes.
Tesla dropped 2.3% at the end of a particularly volatile session with strong exchanges. The maker of electric cars has announced that it has reached a production target for its Model 3, but investors are wondering about the consequences of this acceleration in both financial terms and the quality of vehicles built.
casinos suffered from the announcement of growth below expectations of revenue from games in June in Macau. Wynn Resorts fell 7.89%, the largest decline in the S & P-500.
(With Amy Caren Daniel in Bangalore, Bertrand Boucey for the French service)
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