(New York) The New York Stock Exchange opened in disarray on Monday, on hold ahead of a major US inflation indicator on Wednesday and the start of the earnings season on Thursday.
By 11:45 a.m. EST, the Dow Jones gained 0.32%, the NASDAQ index fell 0.05%, and the S index
“The market is in a waiting position,” according to Karl Haeling of LBBW. “People don’t want to take strong positions ahead of the CPI,” the price index due Wednesday, which will inform the path of inflation.
Economists expect a deceleration to 3.1% year on year in June, which would be the most moderate pace since March 2021.
Wall Street had little new information to sink its teeth into except for inflation figures from China, which showed price stabilization in June, versus an expected 0.2% price rise.
For Duncan Wrigley, of Pantheon Macroeconomics, China is facing a decline in its domestic demand, which confirms the fragility of the Chinese economic rebound.
This indicator “has led to a decline in risk appetite”, observed Karl Haeling. He also revived speculation about possible stimulus measures from the Chinese government.
Several members of the US central bank (Fed) are due to speak on Monday. If a further hike in the key rate is secured at the next meeting on July 25 and 26, they could send some signals as to the next deadlines.
Like stocks, the bond market was taking a breather. The yield on 10-year US government bonds edged up slightly to 4.03% from 4.06% on Friday’s close.
The market is also already geared towards the start of the earnings season on Thursday, marked by publications from PepsiCo and Delta Air Lines in particular.
According to FactSet, analysts are expecting, on average, a decline of more than 7% in corporate profits for the second quarter. If confirmed, this dropout would be the most brutal since the start of the coronavirus pandemic.
Meta was up 1.08% after its new social network, Twitter competitor Threads, passed the 100 million user mark less than five days after its launch. Never has an application reached this threshold so quickly.
Activist investor Carl Icahn’s company, Icahn Enterprises, was recovering (13.49%). The Wall Street Journal reported that the octogenarian had agreed to de-correlate personal loans from his company, giving Icahn Enterprises a breath of fresh air.
The group had been accused, in early May, of inflating the value of some of its assets by the investment fund Hindenburg Research, which had caused a drop of nearly 40% in the price of the title.
The airline Spirit was gaining altitude (5.48%), while its possible buyer, jetBlue, abandoned its alliance with American Airlines to increase its chances of receiving the green light from regulators for this takeover.
Mattel was wanted (2.12%), as the July 21 theatrical release of the film “Barbie” approaches, on which the toymaker has bet big and which is already making a lot of noise.