NEW YORK (Agefi-Dow Jones)–The New York Stock Exchange closed in the green on Tuesday after another volatile session, as investors continue to assess the risks associated with inflation and rising prices. interest rate.
After an opening in the red, the Dow Jones index (DJIA) recovered during the session to finally win 0.8% to 33,180.14 points. Initially hampered by the warning issued by Target, the broader S&P 500 index managed to progress by 1%, to 4,160.68 points. The Nasdaq Composite ended up 0.9% at 12,175.23 points.
Among the statistics of the day, the US trade deficit narrowed more than expected in April, to 87.1 billion dollars, after reaching a record level in March. Investors will be particularly attentive to the next consumer price index, expected Friday in the United States, which could confirm or not a trend of slowing inflation.
Worries about central bank monetary tightening were fueled by a larger-than-expected rate hike in Australia. The World Bank also lowered its global growth forecasts on Tuesday due to the war in Ukraine, and warned of the risks of “stagflation”. The Washington institution now forecasts a rise in global gross domestic product of 2.9% this year, against a previous forecast of 4.1%.
“We are still in this hesitant waltz about how inflation and growth are going to evolve and whether there will be a recession or not,” said Fahad Kamal, chief investment officer at Kleinwort Hambros.
“The Reserve Bank of Australia (RBA) decision reminds us that central banks can surprise us by raising rates more than expected. , he adds. “A more vigorous tightening equals a greater risk of recession”, underlines Fahad Kamal.
On the bond market, the 10-year US Treasury bond rate fell 6 basis points to 2.990%. That of the 2-year security rose slightly, to 2.728%.
“A rate [à 10 ans] at 3% shows that the market has not decided whether we will have a recession and, if so, how severe it will be,” said Julien Lafargue, chief strategist at Barclays Private Bank.
VALUES TO FOLLOW:
-Kohl’s (+8.2%) announced that it was conducting advanced negotiations to be acquired by the holding company specializing in Franchise Group distribution. This transaction could value the American department store chain at around $8 billion.
-Retailer Target (-2.3%) issued a warning on its second quarter results, anticipating a deterioration in its margins due to the accumulation of its inventories. This announcement weighed on the distribution sector before stabilizing at the end of the session. Walmart eventually lost 1.3% and Costco lost 0.2%.
-The Novavax laboratory (+6.2%) took advantage of the vote of the American Food and Drug Administration (FDA) expert committee in favor of the authorization of its anti-Covid vaccine. This support makes a green light from the US health regulator likely.
-Peloton Interactive (-0.4%) announced that its chief financial officer, Jill Woodworth, had resigned four months after her arrival. She will be replaced from June 13 by Liz Coddington, a former finance manager at Amazon Web Services, the cloud subsidiary of the e-commerce giant.
– Union Pacific railroad (+1.6%) lowered its 2022 margin forecast citing rising costs.
-New York Bureau, The Wall Street Journal (French version Thomas Varela, Jérôme Batteau) ed: TVA-JEB
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Dow Jones Newswires
June 07, 2022 16:38 ET (20:38 GMT)