(New York) The New York Stock Exchange was trading in disarray on Friday after slightly more optimistic data than the day before on inflation in the United States and several announcements of banking results.
Undecided, the Dow Jones index, which had started in the green, lost 0.25% around 10:05 a.m. The NASDAQ gained 0.15% and while the S
Wholesale prices fell slightly (-0.1%) last month providing a pleasant surprise as a slight increase was expected, and bringing renewed optimism in the wake of worse than expected inflation figures.
Stock indices that were preparing to open in the red before the index’s release briefly reacted positively to the news.
As for bond rates, they eased quickly to 3.92% compared to 3.96% for ten-year bonds. Two-year short yields slipped to 4.12% from 4.24%.
The day before, the CPI consumer price index had risen (3.4% over one year compared to 3.1% in November), which had moderately cooled Wall Street. The Dow Jones gained 0.04%, the NASDAQ index finished stable and the S index
On the geopolitical front, the Israel-Hamas conflict moved to Yemen on Friday where the United States and the United Kingdom carried out strikes against the Houthi rebels overnight.
They have been threatening international maritime traffic in the Red Sea for weeks in “solidarity” with the Palestinians in Gaza.
Immediately, analyst comments noted that the inflation numbers “do not yet take into account new supply chain issues caused by the Red Sea conflict,” as Will Compernolle of FHN Financial noted.
A flood of banking results and corporate news also hit the market on Friday with mixed fortunes.
Citigroup has announced plans to eliminate 20,000 positions in the medium term as part of a major restructuring affecting in particular the bank’s international activity. The stock gained 0.50%.
Bank of America dropped 1.35% after sharply declining results in the fourth quarter weighed down by exceptional charges and a reduction in deposits. Net profit was $3.1 billion (-56%) year-over-year.
JPMorgan Chase also saw its net profit decline in the fourth quarter of 2023, driven by a mandatory contribution to the deposit guarantee fund, a consequence of the spring banking crisis. Net profit was $9.3 billion, down 15% year-on-year. The investment bank’s stock was up 1% around 10 a.m.
Delta Airlines’ shares fell 6.75% despite stronger-than-expected quarterly results. Investors were disappointed by 2024 earnings per share projections.
Oil sector stocks advanced, driven by fears of an escalation of the conflict in the Middle East after the British and American strikes which caused oil to rise.
Exxon rose 0.81%, ConocoPhillips 1% as did Chevron.