(CercleFinance.com) – Wall Street ended without trend this Wednesday, ending in disorganized order at the end of a session devoid of ‘market movers’.
But there is nevertheless reason to remain optimistic because thanks to modest gains (+0.1%), the S&P500 has achieved an 8th consecutive session of increase, and the Nasdaq has a 9th (at 13,650): this is one of the longest winning streaks of the 21st century for ‘technos’ and the gain of +8.3% recorded since October 30 seems to testify to the return of almost unshakeable confidence in a bright future.
Small downside all the same: the Dow Jones index lost 0.12% to 34,112 and the Russell-2000 fell sharply: -1.12% to 1,712 points.
In the absence of ‘macro’ figures worthy of interest, the interventions of several members of the FED – including Jerome Powell himself – could have animated this session: it was quite the opposite since Wall Street literally froze.
The boss of the FED gave a speech – from Washington – which was neither monetary nor political during the conference celebrating 100 years of existence of the research and statistics division of the Fed: he limited himself to salute the work of the members of his institution.
A governor of the FED, Lisa Cook, who spoke from the ‘Financial System Conference’ in Dublin recalled that ‘an aggravation of global geopolitical tensions, which would notably involve Russia, China, and other countries of the Middle -East could lead to weaker economic activity’ and fuel inflationary pressures’.
In the absence of anything new on the central bank side, investors’ attention has once again focused on oil… just like the day before: the oil debacle continues -2.7% to $75.00 on WTI, which has returned to levels unknown since July 21 (oil stocks have paradoxically held up well (with at worst -2.5% on Devon, -1.8% on Diamonback, -1.5% on Chevron).
Enough to largely temper inflationary expectations by the end of 2023 and encourage the relaxation of US T-Bonds which erase -7Pts to 4.5010% and return to their very best levels of last Friday (i.e. -50Pts in 10 days).
If differences greater than 3% were rare in the ‘equities’ compartment, we will note the ‘gadin du jour’ suffered by Discovery (Warner Bros, CNN, TNT, HBO…) which collapsed by 19% around 9 .40$, following the drop in subscribers and the publication of a loss of $417Mns.
Its rival Disney, which published after the close, climbed +2.5% ‘out of session’ while its streaming service Disney+ gained 7 million subscribers (opposite trajectory to Discovery!).
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