Wall Street ends lower, gloomy mood ahead of inflation gauge on Wednesday

Wall Street ends lower, mood bleak ahead of inflation gauge on Wednesday< /p> UPDATE DAY

The New York Stock Exchange ended lower on Tuesday, gloomy on the recessionary refrain and anxious ahead of the release of a new inflation gauge on Wednesday and a first wave of corporate earnings at the end of the week. 

The Dow Jones lost 0.62%, the Nasdaq index, dominated by technology stocks, fell 0.95%, and the index Broader S&P 500 fell 0.92%.

Indexes searched for direction for a long time on Tuesday, hovering between green and red, before picking downside.

For Edward Moya, the dominant theme remains “concerns about growth”, as investors noted several poor indicators on Tuesday.

In the United States, the NFIB index which measures the morale of small businesses came out at 89.5, well below expectations and the lowest in nine years.

In Germany, the morale of Investors plunged to a level best seen since 2011, according to the ZEW Barometer.

General sentiment was also reflected in the slide in oil, which lost more than 7% in a single session.< /p>

Most stocks in the oil sector were caught in this bad wind, like Marathon Oil (-3.10%) and Occidental Petroleum (-3.61%).

If they hesitated a lot, the New York stock market indices nevertheless remained within narrow margins around the balance, a manifestation of a climate of generalized wait-and-see attitude before the publication, on Wednesday, of the CPI price index for June.

Expected slightly above that of May (8.8% against 8.6% over one year), it should provide information on the trajectory of inflation, on which the American central bank (Fed) is riveted, decided to curb surge in prices.

“We can expect an upside surprise, linked to the jump in gasoline prices last month,” Ed Yardeni said in a note, from Yardeni Research.

“Stock prices are at the mercy of inflation and earnings,” commented Terry Sandven, from US Bank Wealth Management.

Wall Street is also awaiting a first salvo of financial publications from American banks on Thursday and Friday, which traditionally marks the start of the earnings season.

“This is clearly a week in which there are many sources of concern”, insisted Art Hogan, of B. Riley Wealth Management.

“The results have held up well since the beginning of the year, but seem destined for a downward revision “, according to Terry Sandven. Beyond that, “equity prices are unlikely to rise significantly until inflation is under control.”

On the bond market, rates eased again on Tuesday. The yield on 10-year government bonds stood at 2.97%, against 2.99% the day before. It remains below the 2-year rate, a rare phenomenon considered by many to be the harbinger of a medium-term recession.

On the stock market, Boeing was sought after (+7.42% to 147, $15), after reporting delivery of 51 aircraft in June, its best total in more than three years.

The food giant PepsiCo was shunned (+0.57% to 169.50 dollars), despite the publication of a turnover and a net profit above expectations. The group, which was driven by snacks and cereals, raised its sales growth forecast for the whole of its financial year, excluding acquisitions.

After hitting its lowest point on Monday for four months, Twitter has offered a rebound (+ 4.32% to 34.06 dollars), while the management of the social network told Elon Musk that it considered his renunciation as “invalid and unjustified”. /p>

Gap plunged (-5.02% to 8.32 dollars) after the textile group announced the departure of general manager Sonia Syngal, whose strategic initiatives failed to recover sales.

The company, which includes the Gap, Old Navy, Banana Republic and Athleta brands, further warned that it expects sales to decline 5-10% in the second quarter (May to July), as well as a nil or slightly negative operating margin.