Wall Street starts in disarray after accelerating inflation
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The New York Stock Exchange was trading in loose order after opening Wednesday at the start of the quarterly earnings season and after inflation in the United States accelerated in September.
At 2:00 p.m. GMT, the Dow Jones lost 0.40%, the Nasdaq advanced 0.38% and the S&P 500 lost 0.16%.
Tuesday, the Dow Jones index had lost 0.34% to 34,378.34 points, the Nasdaq index, with strong technological coloring, 0.14% to 14,465.92 points and the extended S&P 500 index, 0.24% at 4,350.65 points.
The rise in consumer prices picked up again in September in the United States, with inflation still being driven by rising energy prices and global supply chain disruptions.
Inflation accelerated to 0.4% over one month last month, from 0.3% in August, according to the CPI index released on Wednesday by the Labor Department, and while it was expected to be stable by analysts . Compared with September 2020, prices are up 5.4%, more than the 5.3% year-on-year increase seen in August.
“It is obvious (…) that inflationary pressures persist and are unlikely to abate anytime soon given the further surge in rising energy prices and higher housing costs,” commented Patrick. O’Hare of Briefing.com which promised a “hesitant” trading session on Wednesday. The indices fluctuated between green and red at the opening.
The results season has opened with JPMorgan Chase, BlackRock and Delta Air Lines all exceeding expectations.
Nevertheless JPMorgan lost 1.19% to 163.39 dollars, its good third quarter results having been made possible by a reduction in its credit reserves, by 2.1 billion dollars.
As for the airline Delta, which fell 3.47% to $ 42.03, the recovery in profits was overshadowed by the prospect of more expensive fuel prices which could weigh on its balance sheet by the end of the year. ‘year.
From July to September, the company achieved net profit of $ 1.2 billion (or $ 1.89 per share), less than the profit of 1.5 billion achieved in the same period in 2019, before the start. of the pandemic.
BlackRock, the world’s leading asset manager, was hailed by investors (+ 2.88% to $ 860.06) after reporting better-than-expected quarterly results, taking advantage of the solid health of the stock markets and therefore of the increase in income from its commissions.
The group led by Larry Fink achieved between June and September a turnover of 5.05 billion dollars, up 16% over one year and higher than analysts’ expectations (4.9 billion).
Apple, the biggest market valuation, fell, losing almost 1% to 140 dollars as the group risks not meeting production targets for its new iPhone before the holidays, due to the global shortage of microchips, after Bloomberg News.
The electronics giant had planned to manufacture 90 million iPhones by the end of the year, but it will have to be satisfied with 80 million, its suppliers Broadcom and Texas Instruments being unable to meet the demand.
Bond yields on ten-year Treasury bills were down slightly to 1.54% from 1.57% the day before.
Investors were awaiting the publication of the minutes of the last monetary meeting of the American Central Bank (Fed) in the afternoon. The Fed’s “minutes” could give details of the Federal Reserve’s future decline in monetary support ahead of the next Monetary Committee meeting on November 2-3.
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