Wall Street ends a hesitant session higher while waiting for inflation

Operators of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)

The New York Stock Exchange concluded an undecided session higher on Tuesday, with investors remaining in waiting mode for an inflation indicator on Thursday.

The Dow Jones index gained 0.56% to 33,704.10 points. Advancing at the end of trading, the tech-heavy Nasdaq rose 1.01% to 10,742.63 points and the S&P 500 gained 0.70% to 3,919.25 points.

Stocks ended in the green” in a subdued session as concerns about higher interest rates persist and investors look to inflation data due later in the year. week,” Schwab analysts commented.

The consumer price index (CPI) for December in the United States is due out on Thursday. Analysts expect prices to stagnate over the month and slow down over one year, to 6.5% from 7.1% in November over twelve months, which would bode well for equities.

“Investors are in waiting mode,” said Art Hogan of B. Riley Wealth Management.

They listened to a speech by the boss of the Fed, on Tuesday in Stockholm (Sweden), on the independence of central banks, during which Jerome Powell once again acknowledged that “restoring price stability (…) may require measures that are not popular in the short term” with the rise in interest rates “to slow the economy”.

“It’s not that he brought anything new, but he reiterated what was said in the minutes of the Fed meeting last week,” Art Hogan explained. The Fed “wants to take key rates to 5%, or even a little above and leave them there for a while”, but “the market fears that they will stay at this level too long” and depress the economy, according to the analyst.

After inflation on Thursday, the corporate results season will begin on Friday with those of the banks which will be “of a contrasting nature”, promises Art Hogan.

But overall, he said, 70% of S&P 500 companies will report better than expected in the fourth quarter. On the other hand, “I suspect that we will have more bad forecasts for 2023”, he warned.

On the rating, the action of the Coinbase cryptocurrency exchange platform was welcomed (+ 12.96% to 43.23 dollars), while the company will reduce its costs by separating from 950 employees, a little more than 20% of its workforce.

The company cites the fall in virtual currencies and the impact of the rout of “unscrupulous actors”, pointing to the setbacks of its rival FTX.

Coinbase, which has 4,700 employees worldwide, had already cut 18% of its workforce last June, suffering other shocks to the cryptocurrency market at the time.

The title of the chain of articles for the house Bed Bath and Beyond, on the verge of bankruptcy, experienced a start (+ 27.78% to 2.07 dollars) after announcing, during the presentation of its quarterly losses , a plan to cut spending, including an unspecified number of job cuts.

The chain saw its sales fall by 33% and posted a net loss of 393 million dollars against 276 million a year earlier.

The media and television group Warner Bros. Discovery has benefited from an agreement signed with SkyShowtime on the rights to European programmes. The title gained 8.18% to 12.56 dollars.

The action of the manufacturer of electric vehicles Rivian dropped 1.02% to 16.45 dollars. Several of its senior executives have left the company, according to press reports, while the group missed its production targets of 25,000 vehicles by 2022 by some 700 units.

Bond yields on ten-year rates rose slightly to 3.62%, after falling the previous day to a three-week low.

© 2023 AFP

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