:format(jpg):watermark(cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/EF665FJJCNGHFFHRRMWR57UKMI.png,0,30,0)/cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/2KGW76S4UJCVDNHR7UQTJG7PSM.jpg "The New York Stock Exchange starts in the red, misguided by inflation")
The New York Stock Exchange opened lower, a higher-than-expected US inflation figure accelerating a phase of consolidation already started on Tuesday, after a long streak of hikes.
At around 2.50pm GMT, the Dow Jones was down 0.16% at 36,261.16 points, the high-tech Nasdaq index was down 0.52% at 15,803.59 points and the S&P 500 expanded was down 0. 24% to 4,673.78 points.
Already in the process of settling, the market tightened after the publication of a much anticipated inflation figure which turned out to be higher than expected. Consumer prices rose 0.9% in October over one month, against 0.6% expected. Over one year, the rate has now reached 6.2%, the fastest for 30 years. Excluding food and energy prices, the most volatile, inflation is still accelerating and making its biggest monthly jump since June (+ 0.6%).
“The consensus was really too low, but the fact remains that these figures are disappointing”, commented, in a note, Ian Shepherdson, Chief Economist of Pantheon Macroeconomics. For him, the “risk increases” that the American Central Bank (Fed) “cannot stay on his line” transitory inflation, the scenario to which it has clung for several months.
Under pressure, the Fed “might have to speed up” the normalization of its monetary policy, which began this month, added Chris Zaccarelli, head of investment for the Independent Advisor Alliance.
The bond market reacted sharply to this inflation figure. The two-year US government bond rate rose sharply, briefly rising above 0.50% from 0.42% before the announcement.
“The market already knew what was going on”, estimated, for his part, Art Hogan, of National Securities, relativizing the reaction of stock market indices to the announcement.“What is more important for operators is that we have just completed a season of results which has not seen any significant deterioration in margins”, which could have been caused by rising prices and costs.
For him, “the market really needed a break” after the series of eight consecutive S&P 500 records, not seen since 1997. “There was one yesterday and it continues today.”
Doordash and Mastercard on the rise
Wall Street was awaiting the first listing of electric vehicle maker Rivian, whose market capitalization could exceed $ 70 billion on Wednesday if as many securities as possible are issued.
A colossal value, close to that of Ford and General Motors when the company has just put its first vehicle on the market.
The IPO of Rivian benefited Ford (+ 0.94%), which owns around 13% of its capital, but penalized its competitor Lucid (-3.89%).
Elsewhere in the exchanges, the wind was blowing in the back of DoorDash (+ 13.93%) after the announcement, Tuesday after market close, of the acquisition, for 7 billion euros, of the Finnish Wolt Enterprises OY, which gives to the meal delivery platform a presence in Europe.
In the third quarter, the group recorded a marked increase in turnover over one year (+ 45%) but which is running out of steam compared to the previous quarter (+ 3%).
After seeing nearly $ 200 billion in market capitalization soar, Tesla rebounded (+ 2.46%), four days after the announcement, by its founder Elon Musk, of the possible sale of 10% of its shares.
Investors struggled to digest the results of fast food chain Wendy’s (-8.85%), whose margins are under pressure due to rising costs of labor and raw materials, but also a lower attendance of its establishments.
Mastercard benefited (+ 3.89%) from the extension of its online credit purchasing program, the “BNPL” (Buy Now Pay Later), which is very popular at the moment, to several large groups, notably American Airlines.
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