Wall Street ends lower, lack of motor in an uncrowded market

The New York Stock Exchange closed lower on Monday, unable to find momentum in a market beset by low volumes amid lackluster corporate results.

The Dow Jones fell 0.11% to 34,411.69, the tech-heavy Nasdaq index fell 0.14% to 13,332.35, and the broader S&P index ended near zero at 4,391.69 ( -0.02%).

For analysts at Schwab, indexes ended in the red after a “dull session after a long Easter weekend (Wall Street was closed on Friday) and with European markets closed.”

According to preliminary figures, the New York market recorded the lowest trading volume since December 31 on Monday.

“The market is struggling to find direction right now,” said Adam Sarhan, founder and CEO of 50 Park Investments. “Every time he tries to accelerate, he encounters a lot of resistance. (…) He’s looking for a catalyst and until he finds one, that excitement can be expected to linger in his teeth.”

The geopolitical and macroeconomic conditions were also unfavorable for the stock markets, with an escalation of the war in Ukraine and a renewed fever in raw materials, especially in the case of oil.

Operators are also seeing a little more accurate each day the US Federal Reserve (Fed) accelerator, which in all likelihood is preparing to raise its benchmark interest rate by half a point at once next month.

The benchmark yield for 10-year US Treasuries rose to 2.87% for the first time since December 2018 on Monday.

The first results from companies whose season started last week have not managed to provide sustained support for the indices for the time being.

Although the vast majority of releases perform better than expected in terms of net income, “the response hasn’t been good, even bad,” noted Adam Sarhan. “That tells me institutional investors are selling after the release. And that is very important.”

However, the banking sector was an exception to this move on Monday, followed by Bank of America (+3.41% to $38.85), whose results came in better than expectations, although on the downside. The private customer business was able to compensate for the weakening in investment banking with a significant increase in lending volume.

After “BofA”, JPMorgan Chase (+1.86%), Citigroup (+2.71%) and Goldman Sachs (2.56%) withdrew from the game.

In a turbulent zone since the announcement of Elon Musk’s stake, Twitter rebounded strongly on Monday, gaining 7.48% to $48.45.

The platform’s former chief executive and co-founder, Jack Dorsey, said in a series of tweets on Sunday that the board’s overwhelming opposition to acquiring Elon Musk was a point of “business malfunction.”

The Tesla CEO, now a 9.2 percent Twitter shareholder, tweeted “Love Me Tender” in reference to an Elvis Presley song on Saturday, a message some took as a hint of an upcoming hostile takeover bid.

Looking for encouraging results last week, airlines such as American Airlines (-2.42%), United Airlines (-2.57%) or Southwest (-1.07%) caught on Monday.

China’s Uber Didi Chuxing bounced back (-18.29% to $2.00) after reporting a nearly 13% drop in sales on Saturday. It has also set May 23 as the date for the AGM to ratify the delisting from the New York Stock Exchange.

Another target of investors, asset management company Charles Schwab (-9.44% to $74.94), guilty of below-expected earnings and profits and declining, was weighed down by the decline in deals .

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