Wall Street rose after the S&P and Nasdaq Composite rose last Friday for the fifth of the past six sessions, also reporting their best week since December.
The Dow Jones fell just -0.06% last Friday, taking a 1.05% gain on the week.
At about 3.45pm Italian time, the Dow Jones lost 0.11% to 35,050.30 points; the S&P rose by 0.19% to 4.508 points, while the Nasdaq is + 0.72% at 14.204 points.
The big market mover this week is the consumer price index, a crucial thermometer of the inflation trend, relative to the month of January, which will be published by the US Department of Labor next Thursday, 10 February.
According to estimates, the figure was up 7.2% year-on-year, at the strongest pace since February 1982. By now the markets have priced tighter monetary tightenings by the Fed in 2022 (we are talking about five interventions) and now bets are also increasing on a rate hike of half a percentage point, or 50 basis points, in the March meeting, which is discounted with a probability of around 35%.
Yields on US Treasuries are little moved today, after flying above the 1.90% threshold last Friday, following the release of the US employment report in January, which highlighted growth in new jobs equal to 467,000 units, much better than the growth of 150,000 units forecast by analysts interviewed by Dow Jones.
With employment so resilient and inflation galloping, Jerome Powell’s Fed has no more excuses to postpone the cycle of monetary tightening.
Today session characterized by several rumors about possible M&A transactions, which turbo-charged some stocks.
Peloton shoots over + 32% after some rumors that both Amazon and Nike are considering the option of submitting an offer to take over the group.
The rumors follow the appeal launched by activist investor Blackwells Capital, who asked the board to consider the sale of the company.
The investor also asked the company to fire co-founder John Foley. In the letter, Blackwells identified Apple, Walt Disney and Nike as potential buyers. The rumors today also make the name of Amazon.
You also buy on Spirit, with the stock soaring more than 16% after the airline announced the purchase of rival Frontier Airlines in a deal valued at $ 6.6 billion including debt. The stock of the Frontier holding company, Frontier advances by more than + 3%.