PARIS (Reuters) – The New York Stock Exchange opened on an uncertain note on Tuesday as it awaits the results of the midterm elections in the United States which could end in a victory for the Republicans in the House of Representatives, or even in the Senate, according to the latest polls.
In early trading, the Dow Jones index gained 56.88 points, or 0.17%, to 32,883.88 points. The Standard & Poor’s 500, wider, however fell 0.06% to 3,804.28 points.
The Nasdaq Composite lost 0.04%, or 3.88 points, to 10,560.631.
Some investors believe a Republican victory could bring inflation down as the Republicans are likely to block the Biden administration’s spending plans. They also believe that Republicans are opposed to regulation on new technologies, energy and health, which could allay fears in these sectors.
Others, on the other hand, fear a paralysis of the American administration in the event of the defeat of the Democratic camp while the prospect of a recession remains.
In addition to this electoral deadline, the market is also looking towards the consumer price figures in the United States which will be published on Thursday. The Reuters consensus expects inflation to slow to 8.0% year on year in October, which could lead the US Federal Reserve to start moderating the pace of raising its interest rates. The FedWatch barometer assesses the probability of a 50 basis point rate hike in December at 63%.
In values, the industrial materials group Dupont De Nemours jumped 5.68% in favor of a quarterly profit above expectations.
Tripadvisor (-22.67%) is on the other hand sanctioned for its results, while Take-Two Interactive Software (-12.49%) and Lyft (-18.24%) are neglected because of their prospects. The video game publisher lowered its annual revenue forecast to take into account the impact of the appreciation of the dollar and the slowdown in demand. The VTC specialist has published a sales forecast for the current quarter below Wall Street estimates.
Excluding financial publications, Amgen takes 3.04% thanks to positive data on its treatment against cholesterol.
(Written by Claude Chendjou, edited by Bertrand Boucey)
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