INSTANT VIEW 1-U.S. July CPI data show consumer price increases slowed, inflation still high
August 11, 2021
LE FONTI INTERNATIONAL – TREASURY YIELDS FALL FOLLOWING MIXED MACRO DATA WITH PETER CARDILLO
August 13, 2021The New York Stock Exchange finished modestly in the green on Thursday, with the Dow Jones and the S&P 500 grabbing their third records of the week, after new data on US inflation and employment.
According to final results, the Dow Jones index finished at 35,499.85 points (+ 0.04%) and the S&P 500 advanced 0.30% to 4,460.83 points, with both indices exceeding their highs by a few points. from yesterday.
The Nasdaq, with strong technological coloring, gained 0.35% to 14,816.26 points.
In a loose session, “investors assessed a new round of data on inflation and the labor market” in the United States, analysts at Wells Fargo said.
On the employment side, the Ministry of Labor announced a decrease in new claims for unemployment benefits to 375,000 (-12,000), better than analysts’ forecasts and a figure close to their lowest level since the start of the pandemic .
On the inflation front, while the trend in consumer prices weaker than expected in July (+ 0.5%) had reassured the markets the day before, the increase in wholesale prices, published on Thursday, surprised unfavorably.
The producer price index (PPI) rose 1% on the month, against 0.5% in June and 0.6% for the estimates. Over one year, they have climbed 7.8%.
Bond rates reacted moderately to this figure, with yields on ten-year US debt rising to 1.36% from 1.33% the previous day.
“The PPI was high but the markets seemed to ignore it and technology stocks pulled the market,” noted Peter Cardillo of Spartan Capital Securities.
“We are in the middle of August, the volume of trade is meager,” said the specialist. “Nobody really wants to take the initiative especially with the Jackson Hole central bankers meeting scheduled for two weeks, where an announcement is expected on reducing asset purchases,” he added.
A series of companies announced their quarterly results after the close. Disney’s stock climbed 5.36% in electronic trading after the closing bell to $ 188.90 as the number of subscribers to its Disney + streaming service exceeded expectations to 116 million.
Airbnb, which closed up 2.02% pending its results, dropped 3.26% in post-market trading. Its second-quarter bookings are up 37% from the same period two years ago, before the pandemic, surpassing analysts’ expectations but the group recognizes that the Delta variant “will continue to affect the way of travel” .
The DoorDash meal delivery boy dropped 3.58% after the close. Despite an almost doubling of its sales in the second quarter over one year, the group recorded a larger loss than expected.
