(New York) The New York Stock Exchange closed lower on Tuesday, tense by a record inflation indicator and awaiting a more muscular speech from the US Central Bank (Fed) on Wednesday.
The Dow Jones ended down 0.30% to 35,544.18 points, the technology-rich NASDAQ index 1.14% to 15,237.63 points and the broader S&P 500 index, 0 , 75% at 4634.09 points.
Toronto’s S & P / TSX Composite Index fell 99.88 points to end the session with 20,648.57 points.
After looking for a direction at the start of the session, the market quickly took water, marked by the announcement of a producer price increase (PPI) of 9.6% over one year, a record since that the figure is published on a rolling 12-month basis.
The indicator puts further pressure on the Fed, which kicked off its monetary policy committee meeting on Tuesday, which is due to end on Wednesday with the release of a statement and a press conference by chairman Jerome Powell .
On Wall Street, “what weighed on the indices, it is especially the technology stocks”, underlined Tom Cahill, of Ventura Wealth Management.
Microsoft (-3.26%), the software publisher Adobe (-6.60%), Alphabet (-1.18%) or the customer relationship management platform Salesforce (-3.83%) were thus targeted. ).
“Managers rotate their portfolios before the Fed’s announcement,” explained Tom Cahill. “If the Fed tightens its monetary policy, stocks with high multiples (share price relative to earnings) will have a harder time. So (investors) are repositioning themselves in this perspective. ”
A monetary tightening would induce a drop in available liquidity, which could penalize these securities whose price is already high.
The market also kept in mind the potential impact on the global economy of the Omicron variant of the coronavirus “as people may have to cancel trips or reduce their leisure,” argued Patrick O’Hare of Briefing. .com.
Favorite targets as soon as COVID-19 returns to the market, the cruise line Carnival (-1.04%), the group of casinos and hotels Wynn Resorts (-1.71%) as well as the airline company American Airlines ( -1.23%) all lost more than 1% on Tuesday.
For Patrick O’Hare, after the good run of the past week, the market is going through “a small consolidation”. The bond market was little changed, with the 10-year US government bond rate edging down to 1.44% from 1.42% the day before.
Elsewhere, the food safety specialist Neogen (+ 8.20% to 43.41 dollars) benefited from the announcement of its merger with the division of the 3m conglomerate (+ 0.08% to 174.72 dollars) dedicated to this activity, to create a group valued about 9.3 billion dollars.
This business was housed in the health branch of 3 m, whose revenues represented around a quarter of the group’s turnover in 2020.
Uber took advantage (+ 4.28% to 37.26 dollars) of statements by its general manager Dara Khosrowshahi, who indicated that the VTC (vehicle with driver) reservation platform was considering selling its stake in the capital of its competitor Didi .
Already in bad shape after the announcement of its next delisting on Wall Street, the latter has lost 1.56% and is approaching the lowest level since its IPO at the end of June.
MGM Resorts gained 2.21% to $ 41.23 after announcing the sale of its famous Mirage casino and hotel in Las Vegas for $ 1.08 billion.
with The Canadian Press