(CercleFinance.com) – The New York Stock Exchange plunged into the red on Friday following the publication of a new indicator that was worse than expected on the inflation side.
At the end of the morning, the Dow Jones fell 0.2% to 38,710.9 points, while the Nasdaq Composite dropped 0.2% to 15,874.5 points, the two indices falling slightly after their records recorded in recent days.
The statistics published in the morning cooled the mood by reviving concerns about the level of inflation, after the already disappointing consumer price figures published on Tuesday.
The Labor Department reported that raw producer prices rose 0.3% in January from the previous month, compared with analysts forecasting an increase of just 0.1%.
Without food, energy and commercial services, their increase even reached 0.6%
Disappointment also on the side of building permits, which fell by 1.5% on an annual basis, an even worse correction on the front of construction starts, which fell by 14.8%.
These disappointing statistics lead to profit taking, as Wall Street emerges from a long bullish series, which has seen it progress at the end of 14 of the last 15 weeks.
In the bond sector, the previous day’s gains went up in smoke with the yield on ten-year Treasuries rising again above 4.30%, an increase of almost 12 points over the week.
Regarding values, Applied Materials climbed 8% after better-than-expected quarterly results, driven by the development of applications linked to artificial intelligence (AI).
The stock of Eli Lilly (+2.1%) is among the best performers in the S&P 500 index following the publication of a positive study by Morgan Stanley on the value.
In a note, the analyst wonders if the American laboratory could not ultimately become the first biopharmaceutical group to cross the mark of 1,000 billion dollars in market capitalization, against around 730 billion today.
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