NEW YORK (Dow Jones) — Wall Street continued Thursday’s uptrend from the previous day, albeit with less momentum. The indices are now at their highest level for three months, which should also be used for occasional profit-taking. Premarket producer prices confirmed yesterday’s data, when consumer prices were lower than expected. On a monthly basis, producer prices fell by 0.5 percent, an increase of 0.2 percent had been expected. Hopes that inflation may have peaked are fueling the rally and encouraging investors to believe that the US Federal Reserve will be less aggressive in raising interest rates.
The Dow Jones index improved at noon (local time) by 0.5 percent to 33,469 points. The S&P 500 is up 0.4 percent. The Nasdaq Composite, on the other hand, has changed little, but had also recorded the clearest plus the day before.
“In our view, this is a rally that deserves very close scrutiny because when we look at what has happened since the mid-June bottom, the market outlook hasn’t really changed,” said Jake Jolly, senior investment strategist at BNY Mellon investment management. “Historically, the Fed has hiked more rates than the market expected. And this cycle of rate hikes is clearly far from over,” added the participant.
Fed officials warned on Wednesday that inflation remained “unacceptably high”. Chicago Fed President Charles Evans said he expects the central bank to hike rates for the rest of this year and into next year to ensure inflation falls back to the 2 percent target.
Walt Disney upwards
The business card of the entertainment group Walt Disney is the focus of the individual values. After the closing bell, the company presented third-quarter figures above market expectations. Sales increased by 26 percent, more than analysts had predicted. The Disney+ streaming platform also ran well. The Disney course climbs 5.5 percent.
Bumble stocks fall 8.0 percent. The dating portal came up with a weak outlook for the current quarter. In addition, the company limited the loss in the past period significantly, but analysts had counted on an even stronger decline.
Paysafe down 5.0 percent after RBC analyst Daniel Perlin downgraded the stock to “Sectorperform.” The analyst justified his step with the challenging economic environment, especially for the European activities.
Bonds continue to rise – dollar continues to weaken
Bonds are again making strong gains with lower producer prices, especially at the short end of the market. Interest rate expectations are reflected particularly clearly here. The yield on two-year paper falls 3.7 basis points to 3.17 percent. In contrast, the ten-year yield is recovering from initial losses and is up 5.6 basis points to 2.84 percent.
Dollar falls a bit further after US inflation data. The dollar index fell another 0.2 percent after the basket of currencies slipped to a six-week low the previous day. Signs that US inflation has peaked could push the Federal Reserve for more modest rate hikes going forward, says Ebury’s market strategist Matthew Ryan.
Oil prices continue to climb after the International Energy Agency upgraded its demand forecast due to the summer heat in Europe. Brent and WTI are up as much as 1.4 percent.
The price of gold fell again slightly, but remained within reach of the $1,800 mark. The prospect of a more moderate pace of interest rate hikes by the Fed continues to support the interest-free precious metal, it is said.
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INDEX last +/-% absolute +/-% YTD
DJIA 33,469.35 +0.5% 159.84 -7.9%
S&P 500 4,226.61 +0.4% 16.37 -11.3%
Nasdaq Comp. 12,858.68 +0.0% 3.88 -17.8%
Nasdaq-100 13,378.45 +0.0% 0.13 -18.0%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 3.17 -3.7 3.21 243.9
5 years 2.92 -0.2 2.92 166.3
7 years 2.90 +4.2 2.86 146.3
10 years 2.84 +5.6 2.79 133.2
30 years 3.12 +8.4 3.03 121.7
FOREX last +/- % Thu 8:10am Wed 5:15pm % YTD
EUR/USD 1.0338 +0.4% 1.0286 1.0355 -9.1%
EUR/JPY 137.16 +0.2% 136.87 137.00 +4.8%
EUR/CHF 0.9709 +0.0% 0.9705 1.0637 -6.4%
EUR/GBP 0.8453 +0.3% 0.8431 0.8447 +0.6%
USD/JPY 132.68 -0.1% 133.08 132.29 +15.3%
GBP/USD 1.2229 +0.1% 1.2198 1.2259 -9.6%
USD/CNH (Offshore) 6.7368 +0.2% 6.7384 6.7167 +6.0%
Bitcoin
BTC/USD 24,386.68 +1.8% 24,606.79 23,972.65 -47.3%
CRUDE OIL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 93.24 91.93 +1.4% 1.31 +30.3%
Brent/ICE 98.66 97.40 +1.3% 1.26 +32.5%
GAS VT close +/- EUR
Dutch TTF 207.57 207.03 +1.1% 2.20 +241.7%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,791.09 1,792.39 -0.1% -1.30 -2.1%
Silver (Spot) 20.39 20.57 -0.9% -0.18 -12.5%
Platinum (Spot) 967.32 945.15 +2.3% +22.17 -0.3%
Copper Future 3.70 3.65 +1.2% +0.05 -16.6%
YTD at the close of the day
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(END) Dow Jones Newswires
August 11, 2022 12:17 PM ET (16:17 GMT)
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