(CercleFinance.com) – Wall Street should open lower on Tuesday morning following the publication of solid economic indicators, likely to encourage the Fed to maintain an aggressive stance, or even raise its rates again this year.
Half an hour before the opening, ‘futures’ contracts on the main New York indices lost between 0.4% and 0.8%, announcing a start to the session in the red.
After an increase of 0.8% in August, retail sales increased by another 0.7% in September in the United States, largely exceeding analysts’ expectations (+0.2%).
Excluding automobiles and fuels, retail sales increased by 0.6%, reflecting the good health of consumption, which remains the main driver of the American economy.
These data, which come on top of recent employment and inflation figures which have reinforced the likelihood of further monetary tightening, confirm that it is still too early for American central bankers to let down their guard.
If household consumption has so far resisted the effects of monetary tightening well, the delayed effect of rate increases should end up giving rise to a recessive dynamic.
Their first effects are already visible on the real estate sector, while the job market is starting to show some signs of slowing down, which should not dissuade the Fed from maintaining a restrictive approach in its monetary policy.
On the results side, two major American banks have also published rather mixed quarterly accounts.
Goldman Sachs is expected to decline by 0.3% after reporting a net profit down 33% in the third quarter, notably due to stagnation in its revenues in investment banking and trading.
Bank of America, for its part, should start the session on the rise following the publication of better-than-expected quarterly results, supported by the rise in interest rates.
Health giant J&J announced third-quarter sales of $21.3 billion, up 6.8%, for adjusted net profit up 14% to $6.8 billion.
Copyright (c) 2023 CercleFinance.com. All rights reserved.