Wall Street: Wall Street opens higher, wage growth slows


PARIS (Reuters) – The New York Stock Exchange opened higher on Tuesday as investors were reassured by an indicator suggesting lower inflationary pressures in the United States, but the disappointing results of Caterpillar and Pfizer, as well as the wait for decisions of the US Federal Reserve (Fed) limit gains.

About fifteen minutes after the first exchanges, the Dow Jones index gained 8.25 points, or 0.02%, to 33,725.34 points and the Standard & Poor’s 500, wider, took 0.29% to 4,029.61 points.

The Nasdaq Composite advanced 0.52%, or 58.73 points, to 11,452.55.

All three of Wall Street’s major indices were supported on Tuesday by a U.S. labor cost statistic that rose less than expected in the fourth quarter, with the ECI index rising just 1.0% instead 1.2%, the Labor Department said.

“Labour costs are still high, but costs have come down, and that’s a key driver of future wage inflation,” said Peter Cardillo, chief economist at Spartan Capital Securities.

This data is enough for the moment to reduce fears on the trajectory of the rates of the Fed, which begins a two-day meeting on Tuesday when traders expect a peak rate in the United States of 4.9% in June after the 25 basis point hike expected on Wednesday.

A series of results also animate the exchanges, starting with those of Caterpillar, considered a reliable barometer of the world economy. The title of the world’s number one construction machinery fell 4.79% after the announcement of quarterly profit below expectations in a context of rising costs.

Pfizer lost 1.09%, the pharmaceutical group having said it expected a greater than expected drop in annual sales of its vaccine and its antiviral against COVID-19.

On the upside, General Motors climbed 8.48%, driven by a solid financial forecast for this year.

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(Written by Claude Chendjou, edited by Blandine Hénault)

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