Wall Street ended on an uncertain note after the Fed – Capital.fr

CLOSING OF AMERICAN MARKETS

New York Stock Exchange ended on a note irregular Wednesday, investors wondering how to interpret the statements of the Federal Reserve, which shows both more optimistic about the U.S. economy while reaffirming the need for a highly accommodative monetary policy.

L Dow Jones yielded 0.19%, or 31.75 points 16,880.36, the Coca-Cola shares (-1.81%), UnitedHealth (-1.57%), Caterpillar (-1.25% ) and DuPont (-1.22%) accusing the largest declines.

The S & P-500, wider, has however gained 0.12 points, or 0.01%, to 1,970 07. And the Nasdaq Composite increased again by sector bioctechnologies, has advanced its side of 20.20 Points (0.45%) to 4462.90.

The index grouping the values biotechnology Nasdaq rose 1.03%, thanks in particular to the increase of 5.43% as Amgen after number one sector reported a better-than-expected quarterly profit, while announcing an increase sensitive forecasts and job cuts.

The most significant increase of the day is to the credit of Twitter, whose action is surging 19.98% to 46, $ 30 after the microblogging site said Tuesday that the number of monthly active users increased more than expected in the second quarter.

The Federal Reserve was more optimistic about the state of the U.S. economy Wednesday and also noted a decline in the unemployment rate and changes in the level of inflation to its target for the long term.

That being said, after a monetary policy meeting spread over two days, the Fed is shown again concerned a situation of under-utilization of capacity on the labor market. This observation led her to reaffirm that there was no urgency to raise interest rates.

As expected, the central bank of the world’s largest economy has reduced the monthly amount of its program of quantitative easing (“QE3″), supposed to stimulate the economy, 25 billion against $ 35 billion previously.

RISING DOLLAR

“Not surprisingly, we have been reduced QE3 and what the monetary policy committee actually said is that monetary policy can remain accommodative even after the objectives in terms of employment and inflation, “said Art Hogan, analyst at Wunderlich Securities.

Some analysts believe that the finding of an improvement in the labor market and inflation pave the way for a rate hike sooner than expected.

“This toggles the possibility of a rate hike to the second quarter of 2015 rather than the third,” said Bricklin Dwyer, an economist at BNP Paribas.

This feeling may explain the good performance of dollar-0.26% compared to a basket of currencies and the international decline of the Dow Jones, which, immediately after the release of the Fed, fell two hours before closing, was briefly reviewed in the green.

The monetary policy decision Fed came hours after the release of figures from the Commerce Department showed that the U.S. economy had rebounded in much higher proportions expectations in the second quarter after a start of the year which proved to be less poor than what was originally announced.

The U.S. gross domestic product rose 4.0% from April to June, rates above the 3.0% expected in average by analysts, after a contraction of 2.1% (revised-2, 9%) during the first three months of 2014 marked by an extremely harsh winter that had weighed on demand.

A However, other macro-economic indicator has been worse than expected: the private sector in the United States has created 218,000 jobs in July, a figure well below expectations and that of the month of June, according to the monthly survey from market research firm ADP .

(Benoit Van Overstraeten for the French service)

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