(New York) The New York Stock Exchange ended Wednesday on another positive note after favorable data on inflation and consumer spending in the United States.
The Dow Jones index gained 0.47% to 34,991.21 points, the NASDAQ, with its strong technological coloring, gained 0.07% to 14,103.84 points and the S
After the consumer price index (CPI), which, while remaining stable in October (0.0% over one month, 3.2% over one year), had strongly boosted the stock market indices on Tuesday, it was at producer price turnaround on Wednesday to show that inflation is cooling in the United States.
The wholesale price index (PPI) fell 0.5%, a surprise to analysts who had expected a slight increase. This is the largest decline in producer prices since April 2020.
Separately, retail sales in October edged down 0.1%, less than analysts feared.
“The good news is rushing to the gate, that’s why we see the expanded index S
“With the PPI, we have confirmation of a disinflationary trend and retail sales were a little better than expected,” underlined the analyst interviewed by AFP.
“Both of these support the idea of stable economic growth accompanied by disinflation. “It’s a ‘Goldilocks’ environment,” he added, using the metaphor that describes an ideal soft landing for the economy.
Bond yields, which had fallen dramatically with the dollar on Tuesday in the wake of the fall in the consumer price index, recovered on Wednesday. Around 9 p.m., the ten-year rate stood at 4.53% compared to 4.44% on Tuesday.
On the political scene, a vote by the US Senate is looming to confirm the extension of the federal budget, approved in the House of Representatives on Tuesday. This will help avoid a paralysis (“shutdown”) of American administrative services, which could have occurred as early as Friday.
“This removes short-term uncertainty, even if we step back to jump better,” commented Mr. Kourkafas.
In addition to this American data, there is better than expected Chinese data. Retail sales thus increased in October in China at their strongest rate in five months, to 7.6% year-on-year after 5.5% in September, boosted by a long series of public holidays at the start of the month.
On the market, the department store chain Target soared 17.87%, to $130.59, after beating forecasts for its quarterly sales and results.
On a like-for-like basis, sales fell 4.9% year-on-year in the third quarter, while analysts were forecasting a 5.25% decrease. Target said year-end sales are expected to be a little weaker than last year, but less unfavorable than market projections had predicted.
After Home Depot on Tuesday (1.52%), Walmart (1.25%), the leader in hypermarkets, will announce its results on Thursday.
Other retail brands benefited from the momentum such as Macy’s (7.58%) and Kohl’s (9%).
Many banks ended up, from Bank of America (1.39%) to Citigroup (1.17%) to regional banks like Comerica or Zion which advanced more than 2%.
