(CercleFinance.com) – The New York Stock Exchange is moving in scattered order on Monday, as the rally that began in early fall and which propelled the indices up last week seems to be running out of steam.
At the end of the morning, the Dow Jones index gained 0.1% to 33,783.3 points, but the Nasdaq Composite fell by 0.6% to 11,253.2 points.
Wall Street had tried at the start of the session to continue its upward movement of the past days against a backdrop of optimism regarding the gradual deconfinement in China and the recent slowdown in inflation in the United States.
Goldman Sachs economists announced this weekend that they expect inflation to decelerate “significantly” in 2023, as supply channels normalize, the cost of housing and wage moderation.
The New York investment bank is thus forecasting core inflation – i.e. excluding volatile elements such as food and energy – of 2.9% at an annual rate at the end of end of 2023, compared to +5.1% currently.
Driven by expectations of a slowdown in inflation, the Dow Jones rose for a time to 33,870.3 (+0.4%), which limits its annual decline to around 7%.
Investors nevertheless seem tempted by some profit-taking following last week’s rally, which led the indices to sign some of their best scores since 2020.
US markets performed very well last week, with the Dow Jones gaining 4.2% in five days, while the Nasdaq Composite climbed more than 8%.
At the sector level, the main increases were posted by the basic materials stocks of energy and healthcare, while consumption and real estate continued to lag.
On the stock side, Hasbro dropped by 8% while BofA downgraded its recommendation on the stock from ‘buy’ to ‘underperform’ with a price target reduced from 73 to 42 dollars.
Tyson Foods fell 0.2% following the publication for its last quarter of 2021-22 (ended October 1) of adjusted EPS of 1.63 dollars and adjusted operating profit of 823 million dollars, both down 29% year-on-year.
Amazon lost almost 2% after announcing that its promotional offers of ‘Black Friday’ would be spread over 48 hours this year, with the first offers available from Thanksgiving Day.
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