LAST UPDATE 22:30
The Wall Street indexes are just gaining momentum just before the close of trading, with investors gaining momentum from the data announced today for retail sales but also from the statements of the President of the Federal Reserve, Jerome Powell in a speech today with which was confirmed by the outlook for interest rate increases by 50 basis points in the next meetings of the central bank.
Retail sales provided an encouraging picture for the economy and helped allay concerns that the rally in inflation would hit consumption. In particular, data released by the US Department of Commerce showed a 0.9% increase in sales in April, following the upward revised rise in March by 1.4% from 0.7% initially. Excluding vehicles and fuel sales, retail sales rose 1% last month.
Analysts’ average estimates in a Bloomberg poll showed an increase of 1% in total sales and 0.7% excluding vehicles and fuel.
The data on the course of industrial production were also positive, strengthening at a strong pace for the third consecutive month in April.
In particular, manufacturing output rose 0.8% after a similar rise in March, according to Fed data. Total industrial production climbed 1.1% in April. Analysts’ average estimates in a Bloomberg poll spoke of a 0.4% increase in manufacturing output and 0.5% of total industrial output.
Federal Reserve Chairman Jerome Powell said today that no one should question the US Federal Reserve’s determination to reduce inflation, adding that “the US economy is strong and we believe it is in a good position to withstand a less accommodative monetary policy.” policy”.
The central bank has already raised interest rates by 75 basis points in the last two sessions [25 μ.β. και άλλες 50 μ.β.] while it has announced two other increases by 50 bp. each time for the next two meetings in June and July.
The Fed governor confirmed these forecasts today, noting that “if the performance of the economy is what we expect, then this is something that will be on the table.”
Indicators – Statistics
On the board, the Dow Jones gained 432.61 points or 1.34% to 32,651.68 points, while the broader S&P 500 adds 79.14 points or 1.97% to 4,087.15 points. The technological Nasdaq strengthened by 309.89 points or 2.66% to 11,973.21 points.
Of the 30 stocks that make up the Dow Jones industrial average, 24 are moving with a positive sign and six with a negative. The biggest gainer was Boeing with gains of $ 8.44 or 6.80% at $ 132.49, followed by JPMorgan Chase with gains of 3.66% to $ 122.59 and American Express at 162, $ 06 with an increase of 3.60%.
On the other hand, the three stocks with the biggest losses are Walmart (-11.17%) as the first quarter gains of the retail giant failed to confirm analysts’ estimates, McDonald’s (-1.16%) and Procter & Gamble (-0.42%).
From the “front” of the results, Home Depot announced profits and revenues for the first quarter that exceeded the estimates of Wall Street analysts.
Citigroup also jumped 5% in the wake of reports that billionaire investor Warren Buffett’s Berkshire Hathaway acquired a nearly $ 3 billion stake in the bank in the first quarter.
On the other hand, Twitter shares are moving in a negative direction after Elon Musk tweeted that the $ 44 billion deal “can not go ahead” without more information about spam bots. The US Securities and Exchange Commission (SEC) remains committed to concluding the deal at $ 54.20 per share.