The facade of the New York Stock Exchange (AFP/ANGELA WEISS)
The New York Stock Exchange moved in scattered order on Friday shortly after the opening, trying to digest a record inflation indicator in the United States published Thursday.
Around 3:05 p.m. GMT, the Dow Jones gained 0.33%, the Nasdaq index, very influenced by technology stocks, yielded 0.10%, and the broader S&P 500 index took 0.17%.
Thursday, Wall Street had been sounded by two slaps.
The first came from the CPI price index at 7.5% year on year, the highest in 40 years.
The second came from the chairman of the St. Louis branch of the American central bank (Fed), James Bullard, who pleaded for a 100 basis point (1 percentage point) increase in the Fed by early July.
In the process, the indices accelerated their decline and the Nasdaq even ended down 2.10%.
But, notes, in a note, Patrick O’Hare, of Briefing.com, the Bloomberg agency has since indicated that several members of the monetary policy committee of the Fed had expressed their opposition to such a brutal tightening.
After rising to 2.05% on Thursday, for the first time since August 2019, the rate on 10-year US government bonds eased to 2.00%.
“If we haven’t fully integrated five (rate in 2022) hikes, we are not far from it,” commented Maris Ogg, president of the management company Tower Bridge Advisors.
For the manager, “there is a good probability that the markets have really digested all that”.
“Things look under control for the moment”, with indices in the green, “but the heat stroke on rate hikes deprived the market of oxygen yesterday, we must prepare for a possible reflux” , nevertheless warned Patrick O’Hare.
For Maris Ogg, while Wall Street welcomes the fall in the number of coronavirus cases and the lifting of certain health restrictions in the United States, he is also worried about the impact of inflation on consumption in the United States. first trimester.
“Consumers will be forced to spend less” on services and leisure, “because they spend more (of their budget) on basic necessities,” she warns.
The start of the session was driven by industrial stocks and the energy sector, such as Chevron (+1.23%), 3M (+0.88%) and Merck (+1.20%), all members of the Dow Jones.
The prospect of an acceleration of monetary tightening still penalized technology and growth stocks, like Amazon (-0.65%) or Nvidia (-1.29%).
The Expedia reservations platform accelerated (+1.63% to 200.74 dollars) after the publication of results well above expectations. Chief executive Peter Kern said the effects of the Omicron variant on tourism had been “less severe and shorter than previous waves”.
Sales also exceeded forecasts for Under Armor (-9.35% to 15.71 dollars), but the sports equipment manufacturer said it expected its margins to drop significantly due to high transport costs.
The specialist in credit payment solutions for online purchases Affirm was sanctioned (-11.78% to 51.77 dollars) despite a turnover above analysts’ forecasts. The young company, symbol of the “Buy now pay later” movement (buy now, pay later), in full explosion on e-commerce sites, nevertheless published a larger loss than expected.
Also shunned (-2.58% to 20.41 dollars), the producer of iron ore pellets Cleveland-Cliffs, which missed the target on both revenues and profits. The market has not been sensitive to the group’s speech on 2022, which promises, according to CEO Lourenco Goncalves, with a higher level of profitability thanks to price increases.
© 2022 AFP
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