Investing.com - On Wednesday, the US stock market has opened without a single dynamics, since the new drop in bonds again raised the wave of doubts about the future profitability of companies.
The yield of 10-year treasury bonds of the United States increased by about 5 basis items to 1.47% due to anxiety about the large amount of their supply in the future and concerns about the fact that the tightening of bank regulation will make it difficult for US banks to retain the bonds entering the market. .
By 09:40 East time (14:40 Greenwich) The Dow Jones index grew by 33 points, or by 0.1%, up to 31.424 points, the wider S & P 500 index decreased by 0.3%, and the NASDAQ Composite index fell 0.6%.
The moods also deteriorated a little after the study of ADP on the payment statements in the private sector for February showed the percentage of vacancies only by 117 thousand, which is about 60 thousand less forecasts. However, to mitigate this, the indicator of the previous month was revised towards the increase of more than 20 thousand. These figures did not comply with the official report of the US Department of Labor on Employment Trends in the last months, but it is reasonable to assume that the labor market is still trying to gain momentum after Cancellations related to COVID-19 quarantine restrictions in many states in recent weeks. The official report on the labor market will be released on Friday.
Another disappointment caused a study conducted by the Institute of Supplies in the non-productive sector: The activity index fell to 55.3 instead of the expected level of 58.7. ISM registered a drop in new orders and price increases, adding additional informal evidence of the emerging inflationary pressure.
Meanwhile, the management Fed Lalel Brainard said on the eve of which will be "for some time" before the Fed will have to think about reducing bond shopping, which currently account for $ 120 billion per month.
Bidding Rocket Companies (NYSE: RKT), which on Tuesday have undergone a shortfall caused by retail investors, were suspended due to the reduction limit at the opening and traded by more than 15% below after the end of the break in the auction.
Alphabet shares (NASDAQ: GOOGL) fell 0.6% after his child's subsidiary declared that it stops selling advertising based on the history of individual users, which again indicates pressure on Bid Tech in order to curb a number of aggressive marketing methods who made them so profitable in recent years.
Shares Exxon Mobil (NYSE: XOM) increased by 0.5% after the oil and gas company stated that it would retain its capital costs at $ 16-19 billion in 2021 and $ 20-25 billion in the next four years, retaining production. On Monday, the Company appointed two investors' activist activists to the board of directors after strengthening pressure in order to increase profits and more realistic calculation of probable costs associated with climate change policies in the future.
Author Jeffrey Smith
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