Wall Street shows a timid increase for the hour before market this Friday, still digesting the poor inflation figures (price at…
(Boursier.com) — Wall Street is showing a timid increase for the hour before market this Friday, still digesting the poor inflation figures (consumer and producer prices) announced this week across the Atlantic. The S&P 500 gained 0.2% in pre-session, the Dow Jones 0.1% and the Nasdaq 0.1%. Nvidia, which fell 3.2% yesterday, is expected to rise before the market, but the stock should remain very volatile. Operators are still closely monitoring this issue of the giant AI chips, which had boosted the indices in recent months, but has struggled since the historic peaks recorded during the session last Friday.
Bitcoin fell by 8% over 24 hours to the $67,400 zone today. On the Nymex, a barrel of WTI crude lost 0.7% to $80.7. An ounce of gold advances 0.3% to $2,174. The dollar index lost 0.1% against a basket of reference currencies.
According to the government report from the day before in the United States, retail sales for the month of February 2024 showed an increase of 0.6% compared to the previous month, against +0.7% consensus. Excluding automobiles, they increased by 0.3% against the market consensus of 0.4%. Excluding automobiles and gasoline, on the other hand, sales increased by 0.3%, a little more than expected.
The producer price inflation figures were also an unpleasant surprise yesterday, since the producer price index increased by 0.6% in February, compared to the previous month, against 0.3% consensus and 0.3% a month before – an increase of 1.6% over one year in February against 1.1% consensus. Excluding food and energy, the producer price index increased by 0.3% compared to the previous month against 0.2% consensus. Over one year, the index excluding food and energy increased by 2%… This follows Tuesday’s announcement of an increase already higher than market expectations in consumer prices in February.
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This Friday, for Four Witches Day, investors will follow the New York Fed’s Empire State manufacturing index for March (1:30 p.m., consensus -8), import and export prices for the month of February (same time, consensus +0.2% compared to the previous month for import prices), industrial production figures for February (2:15 p.m., stable consensus for 78.4% utilization rate of capacities), and the University of Michigan’s preliminary Consumer Sentiment Index for March (3 p.m., consensus 77.4).
According to the FedWatch tool, the probability that the Fed will leave its rates unchanged at the highest in more than 20 years on March 20, between 5.25 and 5.50%, on the occasion of its next monetary meeting, is at 99%. The probability of an additional status quo on May 1, at the next meeting, reaches 92%. The probability of a first rate cut on June 12 remains substantial, but the ‘probability’ of status quo in June rises to 42%…
Fed officials did not comment this week, due to the ‘quiet period’ preceding the March 20 monetary meeting. However, Janet Yellen, American Secretary of the Treasury, who is not bound by this obligation, made some comments the day before yesterday dismissing the idea of a stagflation scenario and envisaging a gradual decline in American inflation.
In Wall Street business news, Adobe And Ulta Beauty announced yesterday, after the close, their quarterly accounts. Jabil finally published this Friday.