Wall Street on the rise, inflation slows, but remains high

(New York) The New York Stock Exchange ended higher on Tuesday, with the three flagship indices setting new highs since the start of 2022, on a market which welcomed a price index confirming a deceleration in inflation.

The Dow Jones gained 0.48%, the NASDAQ index rose 0.70% and the broader S&P 500 index gained 0.46%. Dow Jones and S&P 500 ended at their highest closing level since January 2022 and the NASDAQ at a peak not seen since March of the same year.

The New York market reacted well to the publication of the CPI price index for November, which showed a slowdown in inflation in the United States, to 3.1% over one year, compared to 3.2% one year. months earlier.

“This fairly innocuous report suggests that inflation is on the path to 2% (per year), barring an economic shock”, the objective set by the American central bank (Fed), commented Oren Klachkin, from Nationwide Financial Markets.

“These data will not change the outcome of the Fed meeting”, which must conclude on Wednesday with a press release and a press conference from its president, Jerome Powell, Ian Shepherdson said in a note, from Pantheon Macroeconomics, which expects a first cut in the key rate in the spring.

“The disinflation process lost a little momentum in November,” nevertheless tempered Edoardo Campanella of UniCredit.

The market was not moved by this, however.

On the bond side, the yield on 10-year US government bonds eased to 4.20%, compared to 4.23% the day before.

As for stocks, the S&P 500 posted a fourth session of gains in a row.

“Momentum builds on itself as we approach the end of the year,” said Tom Cahill of Ventura Wealth Management.

“Many managers, hedge funds, and others, are not as exposed to stocks as they would like,” he continued. “There are therefore portfolio rebalancings. »

For Tom Cahill, the movement particularly affects the seven star stocks of the NASDAQ, giant technological capitalizations which have boosted Wall Street since the start of the year, notably Nvidia (+2.21%) and Amazon (+1.09%).

However, the analyst does not see the S&P 500 testing its all-time high, which dates back to January 2022. “It should be fairly calm by the end of the year, but we could drift a little further upwards . »

On the stock market, Boeing (+0.22%) reached a two and a half year high, supported by a rebound in deliveries of its flagship aircraft, the 737, in November, after two calamitous months.

Alphabet (-0.79%) suffered the repercussions of the court decision, handed down on Monday, according to which Google has a monopoly on access to applications on its smartphone operating system, Android.

Hasbro declined (-1.06%), 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.

The IT service provider Oracle was sanctioned (-12.44%) for a turnover lower than expectations. Although remote computing (cloud) is growing, licenses and equipment activity have recorded a decline compared to last year.

The hotel group Choice Hotels (-1.94%) launched a hostile takeover bid for its competitor Wyndham Hotels & Resorts (-1.28%), which values ​​the target at $9.8 billion, after the refusal of the latter’s board of directors to accept the acquisition proposal.

The Pfizer laboratory fell (-0.21%) after reporting that all regulatory steps had been completed for the acquisition of the biotech Seagen (+3.29%), specializing in oncological treatments, for 43 billion of dollars. The transaction should be finalized on Thursday, according to the group.