(CercleFinance.com) – The New York Stock Exchange is moving without a clear trend on Thursday at the start of the session, still bearing the marks of the turmoil of recent days despite an easing in government bond yields.
At the end of the morning, the Dow Jones fell 0.4% to 31,714.2 points while the Nasdaq Composite advanced 0.2% to 11,387.4 points.
The fear of an acceleration of the monetary tightening initiated by the Fed was fueled yesterday by the latest inflation figures, which showed only a very slight decline in consumer prices in April.
Initially hesitant, the New York Stock Exchange ended up bending on Wednesday under the weight of these figures deemed unreassuring. At the final bell, the Dow Jones lost 1% and the Nasdaq Composite 3.2%.
After these shocks, caution still dominates the markets, where investors prefer to fall back on assets deemed less risky.
On the bond market, this movement translates into an easing of the yield on ten-year Treasuries, to 2.86%, far from the peak of 3.20% established at the start of the session.
On the foreign exchange market, the greenback is also in demand, and is trading around 1.0410 against the euro, after a new annual ceiling of 1.0380.
The VIX index, which measures the volatility of the S&P 500, often called the ‘fear index’, fell a little but remained, at 32.4 points, above the 30-point threshold, which indicates still very high volatility.
In terms of indicators, the announcement this morning before the opening of a producer price index slightly below expectations had little effect on the trend.
According to the Labor Department, producer prices rose 0.5% in April from the previous month, and 0.6% excluding food, energy and business services.
Over the past twelve months, the increase in producer prices in April thus stood at 11% in raw data and at 6.9% excluding food, energy and commercial services, against +11.5% and +7.1% respectively. in March.
On the employment side, the number of weekly registrations for unemployment benefits increased only very slightly last week, to 203,000 against 202,000 a week earlier.
On the values front, Disney is down 1.5% after posting earnings below expectations last night for its second quarter, which ended in early April.
Ford (-1.1%) but above all GM (-4%) drop out following a double deterioration by Wells Fargo analysts, who recommend ‘underweighting’ the two stocks in the face of soaring vehicle manufacturing costs electrical.
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