VIEW US PCE price inflation ticks higher in October, as expected
November 27, 2024
US Stocks Rise As ‘Black Friday’ Shopping Gets Under Way
December 2, 2024New York (awp/afp) – The New York Stock Exchange opened on a mixed note on Wednesday, on the way to stabilizing before a weekend truncated by a public holiday on Thursday (Thanksgiving) and a half-session on Friday.
Around 14:40 GMT, the Dow Jones was up 0.19%, the Nasdaq index was down 0.36% and the broader S&P 500 index was down 0.12%.
On Tuesday, Dow Jones and S&P 500 had set new records at the close. This was the 52nd peak of the year for the S&P 500.
The first indicators of the day, published before the stock market, confirmed on Wednesday the resilience of the American economy, with a second estimate of growth at 2.8% at an annualized rate for the third quarter and durable goods orders which recorded a rebound.
In addition, new weekly jobless claims remained, as in the previous week, at their lowest level since April.
“Nothing to report,” commented Peter Cardillo, analyst at Spartan Capital, on the subject of these macroeconomic data. “Everyone is waiting for (the consumer price index) PCE,” published at 15:00 GMT.
Economists are expecting a slight acceleration in this benchmark measure of inflation for the American central bank (Fed), to 2.3% over a year in October, against 2.1% the previous month.
“I don’t expect the market to react much to the PCE, because a lot of traders are already on vacation,” on the eve of the Thanksgiving holiday, during which the American markets will be closed, explained Peter Cardillo. Friday’s session will be shortened by three hours.
On the bond market, rates eased sharply. The yield on 10-year American government bonds stood at 4.24%, a first since Donald Trump was elected president, compared to 4.31% the day before at the close.
The New York market was generally reassured by the personalities chosen by the future head of state for key economic posts, considered relatively moderate, which calmed fears of a rebound in inflation and calmed bond rates.
On the stock market, Dell was taking on water (-14.38%), after publishing sales and forecasts below analysts’ projections.
The server and network business (+58% over one year) is riding the wave of artificial intelligence and remote computing (cloud), but the group is suffering from the slowdown in sales of computers to individuals (-18%).
Another sign of the poor performance of the PC market, its competitor HP (-8.70%) also revealed disappointing forecasts for the current quarter. Sales of computer equipment to individuals fell (-4%) during the past quarter, the fourth of its staggered financial year, which ended at the end of October.
Cybersecurity specialist CrowdStrike fell (-3.74%), despite results that exceeded expectations, which reflect the recovery of the Austin (Texas) group after the massive computer outage on July 19 caused by a software update.
Investors were more interested in the profit forecast for the current quarter, which was lower than their expectations.
General Motors recovered slightly (+1.30%) after a difficult session on Tuesday, following Donald Trump’s announcement of his intention to impose 25% customs duties on imports of Mexican products into the United States. GM has many factories in Mexico.
Department store chain Nordstrom declined (-11.00%), despite quarterly sales that outperformed market calculations, particularly thanks to its Nordstrom Rack discount store network (+10% year-on-year).
