2023-08-10 13:37:00
(New York) The New York Stock Exchange, which had started the session enthusiastically after the US inflation figures, in line with forecasts, tempered its enthusiasm to end up very modestly on Thursday.
The Dow Jones index advanced 0.15% to 35,176.15 points, the tech-heavy NASDAQ edged up 0.12% to 13,737.99 points and the S&P 500, which had climbed 1, 22% in session, finally remained almost stable (+0.03% to 4468.83 points).
Year-on-year inflation in July accelerated to 3.2% from 3% in June.
This is the first time in 13 months that annual inflation has risen.
Over one month, it remained stable at +0.2%.
Analysts were expecting +3.3% over one year and +0.2% over the month.
The positive signal comes from underlying inflation (excluding energy and food), which slowed to 4.7% against 4.8% over one year.
Initially, Wall Street enthusiastically celebrated these data, which were almost in line with investor expectations.
“The Fed will continue to adopt a hawkish tone because it wants to prevent an easing of conditions in the financial markets,” commented Ryan Sweet of Oxford Economics.
“Nevertheless, we expect the Fed to avoid rate hikes in September and November when inflation is expected to decelerate further,” said the analyst who believes the cycle of Fed rate hikes is ending. .
But in the second part of the session, the indices slowed their progress. “On the open, there was a relief price spike with brokers chasing each other higher,” said Steve Sosnick of Interactive Brokers.
“Then it came back to the idea that those inflation numbers were modestly positive,” he added.
Investors will now wait for the meeting of central bankers in Jackson Hole (Wyoming) at the end of August to determine the Fed’s future intentions.
At the same time, influencing stock market prices, bond yields, which eased at the opening, started to rise again in the afternoon.
Yields on ten-year Treasury bills rose to 4.09% from 4.00% the previous day. This trend reversal followed an issue of thirty-year notes by the US Treasury which had mixed success.
In terms of values, the announcement of the takeover by the luxury brand Coach (Tapestry group which also owns Kate Spade) of the Capri group, parent company of Michael Kors, Versace and Jimmy Choo for 8.5 billion dollars, climb the title of Capri Holdings by 55.74% to 53.90 dollars.
The proposed purchase price per share is $57. On the other hand, Tapestry plunged 15.93% to $34.67.
Entertainment giant Disney jumped 4.88% to $91.76 despite losing 10 million subscribers to its Disney+ streaming service, announced the day before. The subscription price increases decided in the process satisfied investors.
The title of the ready-to-wear firm Ralph Lauren fell 4.82% to 122.30 dollars despite a better than expected result in the first quarter of its fiscal year 2024.
But the group, which may have taken the brunt of the announcement of the merger of rivals Coach and Michael Korps, warned that the American consumer seemed less inclined to spend.
The Toronto Stock Exchange continued to rise
The Toronto Stock Exchange continued its ascent on Thursday, with the help of financial, technology and telecommunications stocks.
In Canada and the United States, investors will continue to look for data that supports a gradual slowdown in inflation and the labor market ahead of September, when central banks on both sides of the border are expected to make their next rate decision. , said M.me Wilding.
“They both faced very similar dynamics on the employment front, with a high number of vacancies and a strong hiring rate during the first half of the year,” she said. declared.
The S&P/TSX composite index closed up 67.61 points at 20,342.88 points.
The Canadian dollar was worth 74.58 cents US, compared to 74.45 cents US on Wednesday evening.
The Canadian Press
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