(New York) The New York Stock Exchange opened higher on Wednesday after more conciliatory comments on monetary policy from a governor of the American central bank (Fed).
Around 10:15 a.m. ET, the Dow Jones was up 0.09%, the tech-heavy NASDAQ was up 0.49% and the broader S
The day before, the Dow Jones rose 0.24% to 35,416.98 points, the technology-dominated NASDAQ rose 0.29% to 14,281.76 points and the broader index gained 0.10 % at 4554.89 points.
At around 10:15 a.m. ET on Wednesday, ten-year rates on U.S. Treasuries fell to 4.27%, the lowest in more than two months.
The easing of bond yields and support for stocks “was fueled by Fed Governor Christopher Waller, who said interest rates could be lowered if inflation continues to fall for several more months,” he said. explained Patrick O’Hare, analyst at Briefing.com.
On Tuesday, during a conference in Washington, Christopher Waller said he was “encouraged by the first signs of moderation in economic activity in the fourth quarter”.
October’s economic data “are consistent with the type of moderation in demand and easing of price pressure that will help bring inflation back to 2%,” added this Fed governor, who was optimistic about slowing inflation in the United States. His comments opened the door to a future rate cut, which the most impatient investors see happening next spring.
The American government also published, before the opening of the New York market, a revision of economic growth in the United States in the third quarter. It was revised upwards, to 5.2% annualized, compared to 4.9% previously estimated.
“These figures do not convey any economic pressure,” judged Patrick O’Hare.
“They show that indeed the U.S. economy was booming in the third quarter despite higher interest rates […]. But fourth-quarter activity is not expected to be as robust,” he added.
On the value front, General Motors shares soared by more than 10% after the automaker announced a massive share buyback plan.
GM will increase dividends and initiate a massive $10 billion stock buyback plan, despite a $1.1 billion loss linked to an unprecedented strike.
Shoe distributor Foot Locker saw its stock rise 18.50%, as the brand exceeded expectations for its third quarter results. It expects to achieve better sales than previously forecast over the year as a whole.
The title of the hydrocarbon delivery company Phillips 66 was in demand (3.36%). The investment group Elliott Investment Management has taken a stake worth a billion dollars in this energy firm.
Data storage company NetApp soared more than 14% after raising its sales and profit forecasts for the full year.
IT services group Hewlett-Packard Enterprise saw its stock rise almost 8%, while its fourth quarter results, although lower than last year, were better than expected.
Tesla’s stock remained one of the most active at the start of the session, climbing 1.4%.