(New York) The New York Stock Exchange is trading cautiously in the green on Tuesday after a decline the day before as several indicators paint a more optimistic picture for the American economy.
By 10 a.m. EST, the Dow Jones Index was up 0.18%, the NASDAQ was up 0.59%, and the Broader S Index
The day before, the Dow Jones had lost 0.04% to 33,714.71 points. The technology-dominated NASDAQ lost 1.16% to 13,335.78 points and the broader S index
Shortly before the opening, the Commerce Department published the status of durable goods orders which continued to rise beyond expectations in May, for the third consecutive month, notably thanks to transport equipment. They increased by 1.7% and by 0.6% without the transport sector.
In Canada, inflation slowed in May, falling back to 3.4% year on year from 4.4% in April against a backdrop of calm energy prices, although food prices continued to rise sharply.
Month on month, prices rose 0.4% in May, from 0.7% in April.
“All eyes are on the Canadian CPI index, because it tells us what the Central Bank of Canada thinks,” HFE analysts pointed out, while the Canadian Central Bank is often the first of the major Western monetary institutions to initiate a movement in monetary policy.
To fight inflation, the Bank of Canada raised its key interest rate by 0.25 points in early June to 4.75%, three months after being the first major central bank to pause hikes.
For the United States, the PCE index, the Fed’s preferred measure for gauging inflation, will be released on Friday for the month of May.
As for the morale of American households, the Conference Board’s consumer confidence index for June turned out to be much better than expected at 109.7 points against 103.8 points expected and 102.5 points the month before.
Investors also have their eyes on the forum organized by the European Central Bank (ECB) in Sintra, Portugal.
Fed Chairman Jerome Powell will speak on Wednesday.
The ECB’s Christine Lagarde has already “sent a clear message that the cycle of rate hikes will continue,” commented Art Hogan of B. Riley Wealth Management.
The ECB will “continue” its rate hikes at its July monetary policy meeting because it is too early to “declare victory” in the fight against inflation in the euro zone, its president said on Tuesday.
In terms of values, the airline Delta took off (1.50%) after raising its forecast for the whole of its financial year thanks to an increase in demand and a decline in fuel costs. This also benefited other companies such as American Airlines (2.77%) and United Airlines (1.95%).
The travel sector followed suit, as did cruise lines with a jump of almost 4% for Carnival and 1.55% for Royal Caribbean.
Bad news from the side of the American manufacturer of electric pick-ups Lordstown Motors which finally declared bankruptcy while prosecuting the Taiwanese Foxconn which it accuses of not having kept its promises of commercial and financial partnership.
The title of the group created in 2018 collapsed by 44% and was worth only 1.53 dollars.
Pharmacy chain Walgreens fell 9.94% after lowering its earnings forecast due to lower consumer demand for COVID-19 tests and vaccines.
In the bond market, yields on 10-year notes were stable at 3.72%.