(New York = Yonhap News) Correspondent Yoon Young-sook of Yonhap Infomax = The New York stock market fell on the news that producer prices rose more than expected amid continued inflation concerns.
As of 9:41 a.m. on the New York Stock Exchange (NYSE) on the 16th (US eastern time), the Dow Jones 30 Industrial Average is recording 33,834.93, down 293.12 points (0.86%) from the battlefield.
The Standard & Poor’s (S&P) 500 index recorded 4,102.13, down 45.47 points (1.10%) from the battlefield, and the Nasdaq index posted 11,922.09, down 148.51 points (1.23%).
Investors paid attention to the producer price index (PPI) and companies’ earnings announcements.
The U.S. PPI for January rose 0.7% from the previous month, beating the 0.4% rise expected by analysts. This is the largest increase since June last year, and it is a turnaround from a 0.2% decline the previous month.
Compared to the same period last year, January PPI rose 6.0%. This was down from the previous month’s 6.5% rise, but beat the market expectation of a 5.4% rise.
The fact that wholesale prices are rising again month-on-month is a factor that reinforces inflation concerns in that it can be passed on to consumer prices. The consumer price index (CPI) rose 0.5% in January compared to the previous month.
Recently, consumer prices have not slowed down faster than market expectations, raising concerns over inflation.
This trend is making investors more cautious.
According to data from Refinitiv Ripper, investors net outflows of $31 billion from U.S. equity mutual funds and exchange-traded funds (ETFs) in the six weeks ending on the 8th.
It was the longest net outflow on a weekly basis since last summer and the largest outflow since 2016 for the same period at the beginning of the year. Instead, there was a net inflow of $12 billion to overseas equity funds, $24 billion to bond funds, and $3 billion to municipal bond funds during the same period.
In a survey of institutional investors by JPMorgan Chase, about a third of investors said they plan to increase their investments in stocks. This is close to an all-time low.
The weekly unemployment indicator released on the same day also improved.
According to the U.S. Department of Labor, the number of new jobless claims for the week ended March 11 was 194,000, down 1,000 from the previous week. This is below the 200,000 expected by experts compiled by the Wall Street Journal (WSJ).
The US labor market remains strong despite the US’ aggressive interest rate hike, with the US unemployment rate hitting its lowest level in 54 years in January.
The two-year Treasury yield rose to 4.7 percent the previous day, the highest since November last year. On this day, the interest rate also traded around 4.66%. The 10-year Treasury yield was trading at around 3.99%, up about 6 basis points from the previous day. This is the highest since early January of this year.
Company performance is generally positive.
Shares of streaming equipment maker Roku jumped 10% on the news that losses were smaller than expected and sales exceeded expectations.
Toy maker Hasbro also announced a net profit that exceeded expectations, and its share price rose more than 3%.
TripAdvisor’s share price fell more than 6% on the news that Bernstein downgraded his investment rating from ‘above market return’ to ‘market return’.
New York stock market experts predicted that inflation would be difficult to fall all at once, and stock market volatility would increase accordingly.
“This indicator is just a reminder that battling inflation is not easy,” Peter Bukba of Bleeley Financial Group wrote in the report. “We’re trying to recover, so the cost pressure doesn’t magically go away (all at once).”
Morgan Stanley’s Mike Lowengatt told CNBC: “All of the inflation figures coming out this week show that inflation is holding in and the fight is not over.” .
Unemployment data also show that the labor market remains tight, he said. “With hopes that the Fed will turn accommodative in the coming months fade, it’s no surprise that the market is taking a breather.”
Lowengatt said investors need to be aware that inflation will not return to normal levels as quickly as many expect, and that there will be more volatility as a result.
European stock markets were mixed.
Germany’s DAX index is down 0.38%, while the UK’s FTSE index is down 0.15%. France’s CAC index is up 0.45%, while the pan-European STOXX600 index is down 0.27%.
International oil prices were traded in the Gangbo Hap.
The price of West Texas Intermediate (WTI) in March rose 0.34% from the battlefield to $78.86 per barrel, and the price of Brent crude in April rose 0.19% from the battlefield to $85.60 per barrel.
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2023/02/16 23:53 Sent
