Wall Street in disarray, inflation slows but remains high

(New York) The New York Stock Exchange moved higher on Tuesday, welcoming rather favorably a price index which confirms the slowdown in inflation, still significantly higher than the American central bank (Fed) would like.




Around 10:15 a.m. ET, the Dow Jones was up 0.12%, the NASDAQ index was up 0.07% and the broader S&P 500 index was near breakeven (-0.02%). .

Wall Street reacted little to the publication of the CPI price index, which showed a slight deceleration in inflation over one year, to 3.1% in November, compared to 3.2% the previous month.

Even if the one-month figure came out a little above economists’ projections (+0.1% versus expected stability), most of the data was in line with expectations.

The rate of price growth is falling, “but not very quickly either,” argued Kurt Spieler of FNBO.

“Fed members should maintain an offensive posture to the extent that prices continue to rise too quickly,” commented Rubeela Farooqi of High Frequency Economics in a note as the Federal Reserve is due to communicate on Wednesday. on its monetary policy.

The bond market did not flinch. The yield on 10-year US government bonds stood at 4.23%, like the day before at the close.

This publication “will not change the positioning of the Fed”, agrees Adam Sarhan, of 50 Park Investments. “Therefore, it is normal for the market to consolidate and digest after a long sequence of increases. »

The S&P 500 remains on six consecutive weeks of growth and the Dow Jones reached its highest closing level in 20 months on Monday.

For the manager, the fact that this consolidation is taking place within very tight margins “shows how solid the market is at the moment”.

“The market is optimistic at the moment,” confirms Kurt Spieler. “He believes in the scenario of a soft landing for the economy and a rate cut from March. »

“The momentum is there,” insists the analyst. “Large sums that were kept in money are reinvested” in the market. “So I think the trend can continue until the end of the year. We could even, perhaps, test the S&P 500 record.”

Hasbro was in turmoil (-2.42%), after indicating, Monday after the stock market, its intention to let go of 900 additional employees, after a first wave of 1,000 job cuts launched at the start of the year. In total, the toy manufacturer, victim of a slowdown in demand and the expiration of certain licenses, will have reduced its workforce by almost 30%.

The IT service provider Oracle was penalized (-10.34%) for a turnover lower than expectations. Although remote computing is growing, licenses and equipment activity have recorded a decline compared to last year.

The hotel group Choice Hotels (-1.28%) launched a hostile takeover bid for its competitor Wyndham Hotels & Resorts (+0.08%), which values ​​the target at nearly $10 billion, after the refusal of the latter’s board of directors to accept the acquisition proposal.

The Pfizer laboratory advanced (+0.35%) after reporting that all regulatory steps had been completed for the acquisition of the biotech Seagen (+3.27%), specializing in oncological treatments, for $43 billion. The transaction should be finalized on Thursday, according to the group.

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