Wall Street is losing ground before the market this Friday, following a new series of results including some disappointments in the ‘flea markets’, in…
(Boursier.com) — Wall Street is losing ground before the market this Friday, following a new series of results including some disappointments in the ‘bullet points’, particularly on the issue Intel. The operators had already sanctioned yesterday the too short results of You’re here. The S&P 500 and the Dow Jones are hesitant, close to balance in pre-session today, while the Nasdaq loses 0.3%.
In any case, the markets still anticipate future rate cuts, banking on controlled inflation and a soft landing for the economy. On the Nymex, a barrel of WTI crude lost 1% to $76.6. An ounce of gold gains 0.3% to $2,024. The dollar index lost 0.3% against a basket of currencies.
The monetary meeting on January 30 and 31 is also approaching. A new monetary status quo is expected – at 97% according to FedWatch -, but the Fed could then begin to reduce its rates in March or May according to the same barometer (48% probability in March).
On the economic front, American GDP surprised yesterday with its solidity in the fourth quarter. It appears to be growing at a rate of 3.3%, compared to a consensus of 1.7% measured by FactSet and an expansion of 4.9% a quarter before. This is the advanced estimate of quarterly GDP, the first of three assessments. Personal consumption expenditure rose at a rate of 2.8%, once again an increase higher than the consensus. The price index linked to GDP also shows a much smaller increase than expected (+1.5% versus +2.3% consensus).
This Friday, operators will monitor personal income and household expenditure at 2:30 p.m. (consensus +0.3% for income, +0.5% for expenditure, +0.2% for the adjusted price index compared to the previous month, i.e. +3% over one year), then at 4 p.m. the promises of housing sales for December (consensus +2% compared to the previous month).
Visa, Intel, T-Mobile US, Kla Corporation, Capital One, Weyerhaeuser, Western Digital Or Levi Straussannounced their quarterly results yesterday evening, after market trading. American Express And Colgate-Palmolive publish this Friday.