Wall Street positive but cautious: at about 4 pm Italian time, the Dow Jones rises by 0.15% to 36,155 points; the S&P 500 advanced by 0.19% to approximately 4,692 points, while the Nasdaq recorded a progress of 0.24% at 15,899 points.
Tesla headline under pressure on Wall Street after the back-and-forth on Twitter between founder Elon Musk and Bernie Sanders, a Democratic senator from Vermont, who ran for the Democratic Party presidential nomination on Election Day before 2016 and later of 2020.
“We have to expect the extremely rich to pay their fair share. Period,” Sanders said. Musk’s response is ready: “I keep forgetting that you are still alive”. In a subsequent tweet, the auto maker’s number one added up: “Do you want me to sell more shares, Bernie? Just say so.”
Mr Big Short Michael Burry also returned to attack Musk via Twitter, stating that, in his opinion, Tesla’s CEO doesn’t need cash, and that he just wants to sell his company’s shares. Tesla falls by almost 3%.
Also bad was the component stock of the Dow Jones Exxon Mobil, which discounts the drop in oil prices, with the WTI traded on the Nymex in New York which lost $ 80, losing more than 1.50%.
Also on the Dow, Boeing instead climbs, rallies by around 4%, in the wake of the news that Saudi Arabian Airlines is in talks with both Airbus and Boeing to place a large order for jets.
At the same time, the UAE announced it has ordered two Boeing 777 Freighters at the 2021 Dubai Airshow.
Among other stocks, beware of Dollar Tree, which surges nearly + 12% after rumors that activist investor Mantle Ridge has acquired a stake in the discount store chain worth at least $ 1.8 billion.
Concern over the inflation flare-up remains in the United States after the US government released the consumer price index last week, a crucial thermometer of the trend in inflationary pressures which, in October, shot up on an annual basis. annual rate of 6.2%, a record since 1990.
In a note published today and reported by CNBC, John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, noted that the figure added “to the fear that a record inflation in 30 years could remain a problem for a period of time. longer and a challenge for businesses, consumers and monetary policy authorities, over the next 4-6 months or even longer. ”
However, Stoltzfus thinks of it as Fed number one Jerome Powell, therefore believing that inflation will slow down sooner or later.
But Mohammed El-Erian doesn’t think so: “We are in a situation where central banks are getting confused about inflation, repeating the narrative: ‘(Inflation) is temporary, it is temporary, it is temporary’. But” it is not temporary – said the chief economic advisor of Allianz and chairman of the Gramercy Fund Management, warning of the risk that the Fed will make a big mistake.
“We have a lot of evidence that there are behavioral changes taking place,” El-Erian explained. “Businesses are raising prices and will do so again. The bottlenecks in supply chains are lasting much longer than anyone anticipated. Consumers. they are anticipating purchases in order to avoid problems over time, and this is obviously having an effect on inflation. “