(New York) The New York Stock Exchange moved on a mixed note on Friday shortly after the opening, reassured by an American inflation figure in line with expectations, but concerned by mixed news on the health of the American consumer.
Around 10:05 a.m., the Dow Jones recovered 0.17%, the NASDAQ index crumbled 0.16% and the broader S&P 500 index gained 0.08%.
The highly anticipated PCE consumer price index was up 0.3% in April month-on-month in the United States and up 2.7% year-on-year, both unchanged from March and aligned with economists’ projections.
Rubeela Farooqi, analyst at High Frequency Economics, pointed out that the index excluding energy and food had slowed slightly, to 0.2% over one month compared to 0.3% in March.
“We anticipate further improvements on the inflation front in the coming months,” Nationwide analyst Kathy Bostjanic commented in a note.
“The data corresponded almost entirely to the estimates and, very quickly, we saw futures (on stock indices) go from red to green, while bond rates eased,” noted Quincy Krosby, analyst at LPL Financial .
The yield on 10-year US government bonds stood at 4.49%, compared to 4.54% the day before at the close.
“For the market, even if the level (of inflation) which would justify a rate cut has not yet been reached, the fact that it corresponds to expectations has been a catalyst” for stocks, explained Quincy Krosby.
The gains at the start of the session were nevertheless moderate and the NASDAQ even went negative, several analysts retaining from the PCE report one of the rare parameters to have deviated from forecasts, namely consumption.
It only increased by 0.2%, compared to 0.7% in March and 0.3% expected for April by economists.
“If the deceleration of consumption causes inflation to decline and allows the Fed (American central bank) to lower its rates, it will be good for the market, but if consumption slows down too suddenly, corporate profits and stock prices shares will decline. We must therefore remain cautious,” advocated Chris Zaccarelli, analyst at Independent Advisor Alliance.
Quincy Krosby was more positive, citing the good results of Walmart and, Thursday after trading, of the semi-wholesale chain Costco.
Costco Chief Financial Officer Gary Millerchip even said that as inflation eased, customers were returning to buying non-essential products.
The stock of the Issaquah (Washington State) brand nevertheless fell back (-2.74%), handicapped by profit-taking, following its 24% increase since the start of the year.
Another optimistic signal, that of the ready-to-wear group Gap (+21.63%), which took off, after publishing growth in its quarterly sales for each of its four brands (Gap, Banana Republic, Old Navy and Athleta), a performance he had not recorded for years.
The market sees this as the first signs of strategic changes made by the new CEO, Richard Dickson, former boss of Mattel.
Elsewhere on the stock market, Dell was penalized (-18.68%) by statements from its financial director, Yvonne McGill, who indicated Thursday, after the stock market, that the gross margin of the IT group would decline by around 150 points. basis (1.5 percentage points) over its entire financial year, due in particular to an increase in its investments linked to artificial intelligence (AI).
The day after the verdict in the trial of Donald Trump, found guilty of the 34 charges against him, the media group of the former American president lost 4.80%.