The New York Stock Market valuations were little changed on last Friday, catching breath after a week showed the unofficial start of the growing season on Wall Street.
From Monday to Friday, the Dow Jones increased by 2.29%, and the S&P 500 rose 1.25%. The Nasdaq sank 1.08%.
When publishing their turnover and profits between April and June, the big American banks, hard-hit Covid-19 pandemic, have done less bad than expected.
Netflix (-6.52%) disappointed the market despite its more than 10 million new subscribers in the second quarter. The streaming giant, whose profits were below expectations, forecast much slower growth in subscribers in the next quarter with 2.5 million paying customers.
IBM, Tesla, Coca Cola, and United Airlines are among the New York-based companies that report their quarterly health checks during this week.
According to the preliminary estimate of the survey by the University of Michigan, consumer confidence in the US for its part eroded more than expected at the beginning of July due to the resurgence of the pandemic in the country.
As per health situation, investors did not seem to be very alarmed by the new outbreak of coronavirus contaminations in the United States, several daily records having been broken this week.
The market ignores the cases and focuses on clinical trials with the possibility that an effective vaccine will soon be available.
Regarding the bond market, the 10-year rate on US debt rose to 0.6233% around 4:20 p.m., against 0.6168% Thursday evening.
Stock Market Indicators from Tokyo to Paris Stock Market
The Tokyo Stock Market fell slightly on Friday. The Chinese stock markets resumed after their collapse the previous day. It’s due to the persistent progression of the global pandemic that continues to shake investments.
In Tokyo, the Nikkei flagship index fell at 0.32% to 22,696 points on the session. Nevertheless, it rose by 1.8% over the past week. The broad Topix index lost 0.33% to 1,574 points on Friday.
In China, the Shanghai index returned to 0.13% or 3,124 points. The Shenzhen index is 0.69% to 2,159 points, after falling Thursday by 4.5% and 5.2%, respectively.
Meanwhile, Hong Kong’s Hang Seng Index ended up at 0.47% to 25,089 points, after dropping 2% the day before.
The published data (of new contamination) over the past 24 hours seriously question the speed of the post-COVID-19 economic recovery. The numbers show the significant challenge posed by the second wave of infections.
Another record of new daily cases was reached last Thursday in the United States. Tokyo also recorded a peak of new contamination in the last 24 hours (293 cases). It’s an unprecedented level since the beginning of the health crisis in the country.
Mixed US indicators published the day before also weighed on Asian stock market on Friday.
Wall Street was preparing to open in the green last Friday. Dow Jones futures were up 0.40% to 26,659 points, S&P 500 futures were up 0.49% to 3,210 points and Nasdaq futures were up 0.96% to 10,612 points.
In Paris, the CAC 40 was close to break-even near the middle of its session (-0.07%) at 5,081 points. London’s FTSE 100 was up 0.64% to 6,290 points, and Frankfurt’s Dax was up 0.45% to 12,932 points.
Big US banks prepare for a wave of overdue accounts
Several large American banks, worried about the pandemic’s consequences, have set aside billions of dollars to deal with overdue accounts. However, some have taken advantage of the volatility in the markets.
In total, reserves set aside by JPMorgan Chase, Citigroup, and Wells Fargo are to prepare for a wave of overdue accounts and bankruptcies reach $ 28 billion. The three institutions were the first to release their results on Tuesday, ahead of Goldman Sachs on Wednesday and Bank of America on Thursday.