Wall Street has finished near the balance Friday, lacking enthusiasm for the lack of progress on the U.S. budget and after the publication of dull information on the economy of the United States: the Dow has nibbled 0.03% and the Nasdaq dropped 0.1%.
According to the final results, Dow Jones has advanced 3.76 points to 13 025,58 points, while the technology-dominated Nasdaq declined 1.79 point to 3010,24 points. The broader Standard and Poor’s 500 index has scrounged 0.02% (+ 0.23) to 1416,18 points. To approach the weekend and the last day of the month, “indices tend to drop, investors consolidating their positions”, noted Mace Blicksilver of Marblehead Asset Management.
But “the primary concern brokers stays on the negotiations in Washington”, added the expert. In the absence of a political agreement in January between Democrats and Republicans on the budget, a cure of forced austerity will require the countries at risk to destroy the still-fragile economic recovery. And the comments made Friday were not reassuring investors. President Barack Obama has in fact camped on its positions, always defending the idea of more the more affluent Americans despite the hostility of the Republicans in this proposal. For its part, the Republican Chairman of the House of representatives, John Boehner, expressed pessimistic about a quick ending, evoking a “catch-22.”
“The American political game players know that an agreement is needed to reduce the possibility of a relapse in the US economy into recession, but none of the two parties seem to want to be the first to make concessions,” noted analysts at Charles Schwab. Household consumption expenditures have remote to the United States in October, lowering for the first time since may, while stagnant incomes of Americans after five consecutive months of increase. However, noted Peter Cardillo of Rockwell Global Capital, “much of the decline in these indicators is due to the Sandy hurricane” on the eastern end of October and the market “knows that it is temporary.”