A New York Stock Exchange operator (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange ended higher on Monday, positioning itself optimistic ahead of the publication of US inflation before the market opens on Tuesday.
The Dow Jones index gained 1.11% to 34,245.93 points, the tech-heavy Nasdaq gained 1.48% to 11,891.79 points and the broader S&P 500 index advanced 1.14% to 4,137. .29 points, according to final results.
Last week the indices suffered the biggest weekly loss of the beginning of the year.
“Stocks rose as investors await key inflation figures for January,” Schwab analysts noted.
The first will be published on Tuesday, with the consumer price index (CPI) for the last month in the United States. It will be followed ten days later by the PCE index, the Fed’s favorite measure, to gauge the rise in prices.
Meanwhile, on Wednesday, the markets will also be watching retail sales in the United States, a crucial index for assessing the strength of the American economy, the engine of which is consumption.
For the CPI, analysts expect inflation in the United States to have risen a little in January to +0.4%, according to Marketwatch, against -0.1% in December.
But over one year, the rise in the CPI index should slow down to 6.2% over one year against 6.5% in December.
“It looks like the market is expecting some good news on the inflation side, especially on the annual rate, and that drove their stance” higher on Tuesday, said Peter Cardillo of Spartan Capital.
Monday’s session was free of any macro news as the market will soon focus exclusively on such data as the earnings season draws to a close, the analyst added.
This week, on the side of business accounts, we are still waiting for Coca-Cola (+1.69%), AirBnb (+6.93%), Marriott (+1.75%), Cisco (+1.27% ) and agricultural machinery group Deere (-0.62%).
Of the eleven S&P sectors, ten ended in the green, driven by information technology (+1.78%) and consumer spending (+1.47%).
Only the energy sector concluded a decline (-0.60%) in the wake of a decline in crude oil prices.
On the side, Microsoft (+3.12%) took the Nasdaq while the action Meta (Facebook, +3.03%) also climbed as an article from the Financial Times evokes possible new job cuts . Mark Zuckerberg’s group has already reduced its workforce by 11,000 people in November.
Automaker Ford gained 2.79% after announcing it would invest $3.5 billion to build an electric battery plant in northern Michigan with the help of a Chinese partner.
The plant, which will be called BlueOval Battery Park Michigan in the city of Marshall, should be operational in 2026 and create 2,500 jobs.
It will manufacture batteries based on lithium, iron and phosphate (LFP), different from the batteries currently used by the group based on nickel, cobalt and manganese (NCM).
Fintech financial services firm Fidelity National Information Services (FIS), unrelated to investment fund Fidelity, fell 12.50%. This group specializing in payments has announced to outsource the assets of Worldpay, focused on merchants and acquired at a high price of 43 billion dollars in 2019.
In the bond market, yields on 10-year Treasury bills were down to 3.71% from 3.73% on Friday. Those at two years, more sensitive to the rise in short rates, rose slightly but less than in the morning at 4.53% against 4.51%.
© 2023 AFP
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