Posted Nov 15, 2022, 10:43 PM
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The Dow Jones gains 0.17%, the S&P-500 0.87% and the Nasdaq 1.45%
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Fear of Russian missiles in Poland limits gains
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Producer prices rise less than expected in the United States
by Lewis Krauskopf, Amruta Khandekar and Ankika Biswas
Nov 15 (Archyde.com) – The New York Stock Exchange ended higher on Tuesday following further signs of slowing inflation in the United States.
Gains were limited in the second half of the session, however, by fears of a widening conflict in Ukraine following reports of Russian missiles falling in Poland.
The Dow Jones Industrial Average gained 0.17%, or 56.22 points, to 33,592.92 points. The Dow briefly dipped into negative territory after news from Poland before recovering.
The broader S&P-500 gained 34.48 points, or 0.87%, to 3,991.73 points.
The Nasdaq Composite, with a strong technological component, advanced for its part by 162.19 points (1.45%) to 11,358.41 points.
An hour before the opening of the session, the US Department of Labor announced that producer prices (PPI) in the United States had increased in October by 0.2% over one month, twice less than expected by economists polled by Archyde.com.
Less than a week after the announcement that inflation fell back below 8% on an annual basis last month, this statistic confirms the hypothesis that the rise in prices is on the way to being brought under control in the United States, with the consequence is that the Federal Reserve no longer has to be as aggressive in its monetary tightening.
The technology sector, where valuations partly depend on the level of interest rates, was one of the main beneficiaries of this trend, with in particular marked gains for the heavyweights of the rating that are Apple (+1.2 %) or Alphabet (+2.9%).
Retail giant Walmart gained 6.54% after raising its full-year sales forecast and announcing a $20 billion share buyback plan.
Home Depot rose 1.63% as the world’s number one home improvement store reported higher-than-expected same-store sales growth in the third quarter on Tuesday.
* Reminder of the session in Europe:
* WEDNESDAY: (Report Lewis Krauskopf and Carolina Mandl in New York, Shubham Batra, Sruthi Shankar, Amruta Khandekar and Ankika Biswas; With Devik Jain, French version Bertrand Boucey)