Class CNBC Interview 10/19/22
October 19, 2022Class CNBC Interview 10/20/22
October 20, 2022The New York Stock Exchange was timidly back in the green on Wednesday after opening in negative territory, restrained by a rise in bond rates that reflected concerns about stubborn inflation.
Around 2:20 p.m. GMT, the Dow Jones index rose by 0.41%, the Nasdaq by 0.25% and the broader S&P 500 index grabbed 0.16%.
Supported since the beginning of the week by better than expected company results, the Dow Jones gained 1.12% on Tuesday to 30,523.80 points.
The Nasdaq had taken 0.90% to 10,772.40 points and the broader S&P 500 index 1.14% to 3,719.98 points.
The New York Stock Exchange timidly returned to the green on Wednesday after opening in negative territory, restrained by a rise in bond yields that reflected concerns about stubborn inflation.
Around 2:20 p.m. GMT, the Dow Jones index rose by 0.41%, the Nasdaq by 0.25% and the broader S&P 500 index grabbed 0.16%.
Supported since the beginning of the week by better than expected company results, the Dow Jones gained 1.12% on Tuesday to 30,523.80 points.
The Nasdaq had taken 0.90% to 10,772.40 points and the broader S&P 500 index 1.14% to 3,719.98 points.
But inflationary news from the UK on Wednesday pushed bond yields higher and put equities off.
Yields on 10-year Treasury bills accelerated to 4.07% from 4% the previous day.
“This rise in market rates is slowing the rebound momentum in the stock market, which has undoubtedly received a boost from corporate earnings,” noted Patrick O’Hare of Briefing.com.
Inflation in the UK accelerated to 10.1% year-over-year, a 40-year high and the strongest among G7 countries.
“Rates are on the rise again, with UK inflation pushing bond yields up around the world while the dollar is very strong,” Peter Cardillo of Spartan Capital Securities told AFP.
The dollar indeed gained 0.81% against the euro at 0.9777 dollars for one euro and 0.69% against the pound sterling at 1.1242 dollars for one pound around 2:00 p.m. GMT.
“But corporate results continue to fall and they are quite good so it is not excluded that the trend will reverse during the session” to return to the green, added the analyst shortly before the indices don’t go back there.
Among the indicators, the start of new construction sites in September fell by 8.1% compared to the month before and are down 7.7% over one year, while the cost of mortgages continues to climb in the US.
The real estate sector was one of the S&P sectors at the bottom of the pack on Wall Street, falling 1.11%.
On the side, Netflix was doing feats, flying 15.61% to more than 278 dollars, its highest level since April when the title had stalled as the streaming pioneer began to lose subscribers.
Netflix has indeed started again after announcing Tuesday evening that it has gained 2.4 million additional subscribers during the third quarter.
This result far beyond its forecasts represents a victory for the streaming veteran who had lost nearly 1.2 million between January and June. The platform now has more than 223 million subscribers, surpassing its record at the end of 2021 (221.8 million).
United Airlines climbed 5.77% as the airline reported on Tuesday after closing a strong summer quarter.
According to the company, the economic difficulties do not seem to affect the recovery in demand for airline tickets. It anticipates adjusted annual earnings per share well above analysts’ forecasts.
US consumer goods giant Procter & Gamble (P&G) posted a 2% rise in its stock after earnings per share beat expectations. Its profit, however, fell in the third quarter, affected in particular by the rise in the dollar which affected its international sales.
Its volume sales also fell slightly, suggesting that price hikes by the group that makes Gillette razors and Pampers nappies are starting to weigh on consumers.
The low-cost American airline JetBlue gleaned 0.21% to 6.99 dollars after the expected approval of the takeover of Spirit (+ 1.74%) by its shareholders.
