(Boursier.com) — Expected in the green, Wall Street finally opened in disorganized order. the S&P500 is stable at 3,845 points, while the Dow Jones rises by 0.36% to 33,323 points, and that the Nasdaq fell 0.58% to 10,437 points. Despite the good news from China, the operators present remain on the defensive, still worried about the continuation of monetary tightening by the Fed against a backdrop of galloping inflation. The new rise in bond rates is also weighing on the trend.
The Chinese authorities have therefore decided to lift, as of January 8, the mandatory anti-Covid-19 quarantine for anyone entering its territory. The disease has also been downgraded to category B, such as anthrax or AIDS, whereas until now it was managed according to a category A protocol, such as cholera and bubonic plague. “China has made it clear that it is ready to take the big step forward in terms of reopening, which the global economy desperately needs,” Kunal Sawhney, managing director of Kalkine, told ‘Bloomberg’. Still, “it may be a bit of a stretch to expect too much from equities in the short to medium term, perhaps until the middle of 2023.”
In the United States, the news remains dominated by the passage of the “blizzard of the century” and its heavy consequences (at least 28 people died). In the macro diary of the day, wholesale inventories in the United States for the month of November emerged up 1% compared to the previous month, against 0.3% consensus and a revised increase of +0.6%. to the previous month.
The S&P Case-Shiller index of US house prices for the month of October rose by 8.64% year-on-year (20-City index), against 8% consensus, and after a growth of 10, 41% observed in September. Sequentially, the index posted a decline of 0.52% against -1.1% expected. The Federal Housing Finance Agency (FHFA) price index for October remained stable compared to the previous month, against -0.7% consensus, and +0.1% a month earlier. Finally, the Dallas Fed Manufacturing Index for December came out at -18.8 versus -13.5 consensus and -14.4 in November.
On the currency market, the greenback fell slightly with a dollar index at 103.7 pts (-0.25%) while the euro advanced by 0.15%, above $1.06 between banks. Bitcoin is trading below $16,850. Finally, on the oil market, the barrel of Brent is moving around 84.9 dollars (+1.2%), boosted by information from China.
Values
* You’re here stumbles 6.7%. The vertiginous fall in value continues in pre-session on Wall Street. The electric car manufacturer, which has dropped nearly 22% in the last six sessions to close Friday at its lowest since September 9, 2020, lost more than 5% in pre-market trading on Tuesday. According to an internal document seen by ‘Reuters’, Tesla halted production at its Shanghai factory on Saturday, a day earlier than expected. No reason was given to anticipate an originally scheduled break from December 25 to January 1. This decision comes as the American group and its suppliers are facing significant operational challenges in connection with the peak of Covid-19 infections in the country. Tesla is also expected to halt production at its main factory from Jan. 20-31 for an extended break for Chinese New Year.
In the event of a close in the red this evening, Tesla would therefore align a seventh consecutive session of decline, unheard of since September 2018. The title has lost 65% since January 1, bringing the capitalization of the Austin-based group to less than 390 $bn. The latest value-driven selloff is linked to Elon Musk’s $40 billion sale of stock to help fund the Twitter takeover. “I won’t sell stocks until – I don’t know – probably in two years, certainly not next year under any circumstances, and probably not the year after,” the billionaire tried to reassure in a conversation. Live audio on ‘Twitter Spaces’ Thursday night. The boss of SpaceX was also pessimistic about the economic environment for the coming months. “I think we’re in a recession, and I think 2023 is going to be a pretty bad recession,” the Tesla boss said. “It’s going to be, in my opinion, comparable to 2009. I don’t know if it’s going to be a little worse or a little better, but I think it’s, in my opinion, likely to be comparable. That means the demand for any type of optional and discretionary item, especially if it is an expensive item, will be lower”.
* NIO (-6%). The Chinese manufacturer of electric vehicles listed on Wall Street lost 4.5% in pre-session after lowering its forecast for vehicle deliveries for the fourth quarter to a range now between 38,500 and 39,500 against 43,000 to 48,000 previously. “In December 2022, the company faced challenges in deliveries and production, as well as some supply chain issues, caused by the outbreak of the Omicron variant in major cities in China,” said said the company.
* Southwest Airlines down 5.8%. The main company affected by the historic storm that hit the United States over the Christmas weekend, the Dallas-based company said the ‘chaos’ should continue for at least a few more days. “In all likelihood, we’ll have another tough day tomorrow as we work our way through it,” chief executive Bob Jordan said in an interview with the Wall Street Journal on Monday night. “It’s the biggest event I’ve ever seen.” While Southwest was responsible for nearly three-quarters of U.S. cancellations on Monday, the U.S. Department of Transportation said it was concerned about Southwest’s “unacceptable” rate of cancellations and delays, as well as reports of a lack of promptness in customer service.
USDOT Southwest’s & service. The Department Southwest plan. — TransportationGov (@USDOT), through Twitter
Southwest apologized for the disruptions, saying the airline is fully staffed for the holidays, and 23 of its 25 major airports were affected by the storm. “After several consecutive days of extreme winter weather across our network, the continuing difficulties are having a significant and unacceptable impact on our customers and employees,” the airline said in a statement. She added that she was working “to urgently address large-scale disruptions by rebalancing the company and repositioning crews and our fleet to better serve everyone planning to travel with us.”