Pending US inflation, second session in the red for Wall Street

The New York Stock Exchange ended in the red for the second session in a row pending the publication of the US price index and after gloomy news from the Chinese economy.

The Dow Jones index fell 0.54% to 35,123.36 points, the tech-heavy Nasdaq lost 1.17% to 13,722.02 points and the S&P 500 index fell 0.70% to 4,467.71 points.

“The market has been in a nervous waiting mode,” summed up Peter Cardillo of Spartan Capital Securities.

China has released disappointing new data. After those of the fall in its exports and imports the day before, Beijing reported a decline in its CPI price index of 0.3% in July.

“This news is negative on a global scale. In short, China is entering deflation”, commented Peter Cardillo.

This reflects “a lukewarm and uneven recovery on the consumption side in China, but it is still far from the persistent deflation we have seen in Japan”, put Duncan Wrigley of Pantheon Macroeconomics into perspective.

Investors also remained cautious pending US inflation figures to be released on Thursday before Wall Street opens for the CPI consumer price index and Friday for producer prices.

Analysts expect inflation to come in at 3.3% year on year from 3% for June.

These figures will fuel expectations regarding the direction of US monetary policy as a large majority of investors believe that the central bank (Fed) will choose to observe a status quo on rates in September.

On the bond market, rates fell a little to 4.00% around 8:15 p.m. GMT against 4.02% the day before.

On the side, Disney, which closed slightly lower (-0.69% to 87.52 dollars), dropped 2.06% in electronic trading even if its quarterly results exceeded forecasts.

Investors were instead reacting to the loss of more than 10 million second-quarter subscribers to its Disney+ streaming service. The service saw its subscribers decline for the third consecutive quarter to 146.1 million.

On the Nasdaq, the information technology sector (-1.51%) and the communication sector (-1.24%) led the losses.

After the market closed, the Biden administration announced restrictions on US investment in the most advanced technologies in China, such as artificial intelligence, measures that were expected.

The shares of semiconductor manufacturers have concluded in sharp decline like Nvidia (-4.72% to 425.54 dollars), AMD (-2.44%) or Intel (-2.11%).

Tesla also lost more than 3%, after a fourth negative session. The stock is under pressure with the announced departure of the electric carmaker’s chief financial officer, Zach Kirkhorn.

The title of the online gaming platform Roblox collapsed 21.94% to 29.46 dollars, sanctioned after the announcement of a larger than expected quarterly loss associated with lower than expected reservations.

Electric vehicle maker Rivian fell 9.88% despite better-than-expected second-quarter results.

Rivian raised its vehicle production forecast to 52,000 from 50,000 for the year and reduced its operating loss projection.

Shared office specialist WeWork collapsed 38% to $0.12.

WeWork, in great difficulty for several years, had warned the American stock market policeman (SEC) on Tuesday that he feared for his survival.

“There is substantial doubt about the company’s ability to continue as a going concern,” the company warned in a filing with the SEC.

At issue, according to the company: financial losses, liquidity needs and the decline in the number of tenants. It says it lost billions of dollars in the first six months of this year due to falling demand linked to poor economic conditions.