LAST UPDATE: 19.00
Strong volatility on the Wall on Thursday with the S&P 500 and Nasdaq exchanging signs, while the Dow is trading in negative territory. Investors weigh the encouraging economic data released today in the US but also the best of the expected results announced by Nvidia, continuing the balance of strong corporate profits for the third quarter, amid concerns about inflation.
The US market is coming from a session with small losses, with the S&P 500 and the Nasdaq still keeping in touch – 0.3% and 0.4%, respectively – with their historical highs.
The investment climate is stimulated today by the macros that were announced, however, the concerns about the high inflation and the disruptions in the supply chain are maintained.
In particular, the number of Americans applying for new unemployment benefits fell last week, slipping closer to the levels before the outbreak of the coronavirus, as the labor market recovery continues to gain momentum.
Particularly, Initial applications for state unemployment benefits fell by 1,000 to the seasonally adjusted size of 268,000 for the week ended Nov. 13, according to the U.S. Department of Labor.
This is the lowest level since the outbreak of the pandemic in the US more than 20 months ago. Analysts’ average estimates in a Reuters poll put the applications at 260,000.
In addition, the Federal Reserve of Philadelphia’s manufacturing index jumped to 39 out of 23.8 points.
At the same time, assuming that Inflation has persisted for longer than expected, proceeded one of the most “aggressive” executives of the Federal Reserve.
“Now, I’m going to admit that it lasts longer than I expected. I expected the supply chain to be more resilient than we’ve seen,” said Chicago Fed Chairman Charles Evans.
By the middle of next year, the Fed will know if the supply chain is working and if prices are going to return. “There is more uncertainty than I expected a few months ago,” Evans said.
At the same time, he said that a sudden cessation of bond purchases by the Fed would not have a good impact, as he reiterated the stance that the central bank will hold until the middle of next year to complete the tapering and then start thinking about when it is. the right time to raise interest rates.
In the field of results, the Nvidia announced better-than-expected quarterly results, recording record sales. In particular, the company reported third-quarter net income of $ 2.46 billion, or 97 cents per share, compared to $ 1.34 billion, or 53 cents per share, in the same period last year. Revenue hit a record $ 7.1 billion, up 50 percent from $ 4.73 billion in the same quarter last year. Its share marks a “jump” of 10%.
In the meantime, his performance 10-year government bond of the USA falls by 0.3 basis points to 1.604%, while the dollar moves slightly downward.
Indicators – Statistics
On the board, the Dow falls 0.27% to 35,830 points, the widest S&P 500 adds 0.23% “touching” the 4,700 units and the technological Nasdaq declines by 0.37% to 15,980.
From 30 shares that make up the Dow, 7 move with a positive sign and 23 with a negative. Home Depot leads the profit with an increase of 2.68%, while Cisco pushes the index downwards with a “dip” of about 9% –in the aftermath of the conflicting results he announced– Visa Inc with losses of 1.8% and Intel losing 1.72%.
The share of Macy’s Inc. marks a 20.5% rally after the announcement of the results for the third quarter that exceeded expectations, while Kohl’s Corp wins 7% since it also announced better-than-expected results.
Deere & Co adds 2.1% after reaching a new agreement with the employees and the strike they had been on since October 14 was canceled.