Monday, October 31, 2016

Uncertain about the election, Wall Street ends in a very slight drop – Boursorama

Wall Street gets a little ( AFP/Archives )

Wall Street gets a little ( AFP/Archives )

According to the final results, the index featured Dow Jones Industrial Average has lost level 18.77 points to 18.142,42 points and the Nasdaq, to dominant technological, 0.97 a point-to-5.189,13 points. The expanded index SP500 was down 0.26 point, or 0.01%, 5.126,15 points.

“The approach of the election is dominating the markets at the moment,” summary Jack Ablin, BMO Private Bank.

“I think most investors are trying to see clearly on the latest developments”, continued Alan Skrainka of Cornerstone Wealth Management, which saw him also the explanation of a session of “quiet”.

Friday, the announcement of the reopening by the FBI of the investigation into the emails of Hillary Clinton provoked an access of excitement to the New York stock Exchange, where most analysts had been pencilling in hitherto a victory of the candidate, a democrat.

“We have seen significant changes in the polls and I think those who were very confident on the fact that this race was a foregone have no doubt”, has detailed the Alan Skrainka.

“The investors are trying to get a better idea of the scope of this issue,” said Jack Ablin.

In this context, the markets have shrugged off economic indicators as no surprise, with spending of households that were robustly increased in September and an acceleration of inflation year-on-year to climb to its highest level in nearly two years, according to the index of PCE.

“The main lesson from these figures is that the price trend PC leaves any reason to believe that the Fed is still on the path of a rate increase by the end of the year,” said Patrick O’hare of Briefing in a note.

The monetary Committee of the Fed (FOMC) meets for two days from Tuesday, but the markets do not expect to raise rates so close to the presidential election of 8 November, and rely instead on a monetary tightening in December.

- Baker Hughes falling -

The prudence of the markets has somewhat overshadowed on Monday a new round of mergers and acquisitions which have had “limited consequences to their securities,” according to Alan Skrainka.

a Member of the Dow Jones, the industrial conglomerate General Electric will combine its activities in oil and gas with Baker Hughes (-6,29% 55,40 dollars) and has lost 0.41% at 29,10 usd.

The telecommunications company CenturyLink has dropped out of 12,54% 26,58 dollars after it announced the purchase of Level 3 Communications (+3.89 per cent to 56,15 in dollars), to $ 34 billion debt understood either 66,50 dollars per share, to extend its network and service provider access to high-speed internet.

The investment firm Blackstone (-1,84% 25,03 dollars) will be acquired for $ 6.1 billion, the company specializing in the health services TeamHealth (+16,44% 42,85 dollars).

The first oil canadian Suncor declined from 2.52% to 40,25 dollars on its listing in new york after the announcement of the sale of its lubricants business Petro-Canada to the u.s. HollyFrontier, which has advanced from 4.66% to 24,95$ .

in addition, for its last day of trading as a single business, Alcoa has taken 1.23% 28,72 dollars. The aluminium giant, which launched traditionally the season of the results of the large companies, will be split from Tuesday in two separate entities.

The bond market went on. To 20H40 GMT, the yield on Treasury bills to 10-year declining to 1,827%, compared to 1,846% Friday evening, and that bills to 30 years to 2,583%, compared to 2,618% previously.


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