PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday as investors awaited monthly U.S. inflation figures as disappointing results from PayPal and forecasts from an Apple supplier weighed also on market sentiment.

In early trading, the Dow Jones index lost 68.92 points, or 0.2%, to 33,549.77 points and the broader Standard & Poor’s 500 fell 0.48% to 4,118 points.

The Nasdaq Composite lost 0.52%, or 64 points, to 12,192.91.

U.S. consumer price (CPI) data for April will be released on Wednesday ahead of producer price (PPI) data on Thursday as the Federal Reserve last week hinted at a pause in the rise in the cost of credit after a further 25 basis point rise in its rates, which brought the “fed funds” target to 5%-5.25%.

The Reuters consensus forecasts an acceleration of the CPI to 0.4% over one month and a stagnation at 5.0% over one year, while the PPI is expected to rebound by 0.3% over one month and to decelerate by 2, 4% over one year, which increases the uncertainty on the trajectory of the Fed’s rates and the scenario of a soft landing for the economy.

The risk of a US default if Congress fails to reach a compromise on the debt ceiling by June 1 also discourages risk taking. US President Joe Biden is due to meet with House Speaker Kevin McCarthy and other congressional officials later today.

In values, regional banks, still affected by the rapid rise in interest rates, are back in the red after Monday’s timid rebound, Pacwest Bancorp losing 6.53% and Western Alliance 4.75%.

Paypal Holdings fell 10.34% after the payment group lowered its adjusted operating margin forecast for this year.

Chipmaker Skyworks Solutions, an Apple supplier, plunged 7.65% after the company announced lower-than-expected revenue and profit guidance for the current quarter. In its wake, other Apple suppliers like Qualcomm and Qorvo yield 0.89% and 2% respectively, while the Apple group drops 0.28%.

Among other releases impacting large caps, electric vehicle makers Fisker and Lucid Group slump 0.77% and 8.56% respectively after lowering their annual production target, dragging them down Tesla (-1.62%) and Rivian (-4.97%).

The sports equipment manufacturer Under Armor (-6.12%) is sanctioned because of annual forecasts below market expectations, while the cosmetics and perfumes group Coty gives up 2.89% after its results.

The pharmaceutical group Novavax soars by 36.10% in response to the announcement of a plan to cut 25% of its workforce worldwide.

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(Written by Claude Chendjou, edited by Kate Entringer)

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