(Reuters) – The New York Stock Exchange opened higher on Wednesday, with yields on US Treasury bonds continuing to fall, while investors await the “minutes” from the US Federal Reserve (Fed) in the evening and the latest on Thursday inflation data.
About fifteen minutes after the first exchanges, the Dow Jones index gained 67.01 points, or 0.2%, to 33,806.31 points and the broader Standard & Poor’s 500 increased by 0.23% to 4,368. 44 points.
The Nasdaq Composite gained 0.5%, or 68.26 points, to 13,631.10.
An hour before Wall Street opened, a Labor Department report showed that U.S. producer prices (PPI) rose more than expected in September, with the index up last month by 0. 5% over one month and 2.2% over one year. Even if the increase is greater than expected, the index nevertheless shows a deceleration compared to August and investors are mainly awaiting the publication of consumer price figures (CPI) on Thursday.
“The market is reacting as if this was essentially a non-event, something that had been anticipated and that would not cause the Fed to change its inflationary stance,” comments Sam Stovall, analyst at CFRA Research.
The minutes of the September Fed meeting, during which central bank officials kept rates unchanged, are scheduled for 6:00 p.m. GMT. It should provide clues about the central bank’s interest rate outlook.
In the meantime, bond yields continue to fall, the easing being accentuated by recent comments deemed accommodating made by several Fed officials. The ten-year yielded almost six basis points, to 4.59%.
One of its members, Michelle Bowman, however, reaffirmed on Wednesday that despite “some progress” in terms of inflation, the central bank will probably have to tighten its monetary policy further to restore price stability.
Caution is also required before the start of the corporate earnings season in the United States on Friday, while the ongoing conflict between Israel and Palestinian Hamas raises fears of a new surge in oil prices.
In terms of values, Exxonmobil fell by more than 4% after announcing on Wednesday the purchase of its American competitor Pioneer Natural Resources (+0.4%) for around 60 billion dollars.
Birkenstock Holding is making its stock market debut in New York this Wednesday as part of an IPO that values the German shoe maker at around $9.3 billion.
The pharmacy chain Walgreens Boots Alliance gains nearly 4% after the announcement of the appointment of Tim Wentworth as CEO.
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(Written by Augustin Turpin, edited by Claude Chendjou)
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