PARIS (Reuters) – The New York Stock Exchange moved up slightly at the start of trading on Wednesday after the announcement of a sharper-than-expected increase in producer prices in the United States in September, likely to fuel fears further sharp increases in interest rates.
Ten minutes after the start of trading, the Dow Jones index gained 40.58 points, or 0.14%, to 29,279.77, the Standard & Poor’s 500 rose 0.17% to 3,595.1 and the Nasdaq Composite took 0.26% to 10,453.47.
The increase in producer prices stood at 8.5% over one year in September, while the Reuters consensus was counting on 8.4%. This figure nevertheless marks a deceleration compared to August, when it reached 8.7%.
While waiting for consumer price statistics on Thursday, the main economic event of the week, investors will read at 6:00 p.m. GMT the minutes of the Federal Reserve’s September meeting, which could give them new indications on the continuation monetary tightening in the coming weeks.
Several central bank officials must also speak in public during the day, including Neel Kashkari, the president of the regional branch of Minneapolis.
Markets are currently pricing in a 92% chance of another three-quarter point hike in the federal funds rate target next month.
On the bond market, Treasury bill yields are practically unchanged, at 4.3016% for the two-year and 3.9432% for the ten-year.
In corporate earnings news, PepsiCo gained 3.69% after revising its annual revenue and profit forecast upwards. In its wake, Coca-Cola takes 2.67%, the best performance of the Dow Jones.
The bottom of the index is for Boeing, which gives up 0.65% after the recommendation of “underperformance” from Credit Suisse, whose price target is the lowest of the whole place.
Intel sold 0.29% after press reports that the slowdown in the IT market could lead the group to cut several thousand jobs.
(Written by Marc Angrand)
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