Wall Street contrasted, after the losses on the eve triggered by the publication of the data on US inflation, or the consumer price index, for the month of October.
The figure jumped 6.2% yoy, to a record since 1990. On a monthly basis, the index jumped + 0.9%, more than the + 0.6% rise expected by analysts’ consensus.
Core inflation, ie inflation without the more volatile components represented by energy and food prices, increased by 0.6%, compared to the estimated + 0.4% and after + 0.2% in September. On an annual basis, core inflation advanced by 4.6%, compared to the + 4.3% expected, against + 4% in September.
Wall Street discounted the prospect of a more aggressive Fed on both the tapering and rate hike fronts. The Dow Jones Industrial Average thus lost 240.04 points to 36,079.94 points at the end of the session, while the S&P 500 fell by 0.82% to 4,646.71. The Nasdaq Composite made -1.66% to share 15,622.71.
Ryan Detrick, chief market strategist of LPL Financial, commented on the new flare-up of US inflation:
“Inflation remains stubbornly high, to the surprise of many, who predicted a drop in prices sooner than it is. The truth is, you can’t shut down a $ 20 trillion economy and not feel any shock when it reopens. the hope is that the problems that hit the supply chains will be solved in the coming quarters and that inflation will slow down “.
That said, following the release of the data, traders have revised upward their expectations for the Federal Reserve’s first monetary tightening: fed funds futures are now betting with a higher probability on a first rate hike in July 2022.
After the sell off on the eve of the eve, there is a desire for recovery on Wall Street: at 3.40 pm Italian time, the Dow Jones however lost 0.19% to around 36,012 points; the S&P 500 advanced 0.18% to 4,655, while the Nasdaq made + 0.66% to 15,727 points.
Among the Tesla stocks always a great protagonist: in the end Elon Musk has really demobilized some shares held in the giant he founded. According to financial records released on Wednesday evening, Musk has sold Tesla stocks worth a total of approximately $ 5 billion. His trust fund, to be precise, has disposed of more than 3.5 million shares for a heat exceeding $ 3.88 billion, between Tuesday and Wednesday. These transactions were not of type 10b5, which means they were not scheduled. Also yesterday evening, other documents showed that Musk is proceeding to sell a separate block of Tesla stock through a plan he launched on Sept. 14. These sales involved more than 930,000 shares, worth more than $ 1.1 billion.
Tesla stock recovered yesterday, closing up more than 4% after the electric car maker giant lost nearly $ 200 billion in value in the previous two sessions. Today, the prices are up by just half a percentage point.
Musk’s Twitter survey asking if he should sell 10% of his stake was followed by news of his brother Kimbal Musk selling some shares last week. The day before yesterday came the lunge of Michael Burry who accused Elon Musk of wanting to sell shares to cover personal debts.
Also highlighted today is the sharp decline in the Disney stock, almost -9% after the American entertainment giant announced that it had ended the third quarter of 2021 with a number of subscribers and a budget that disappointed the market.
It goes even worse than the title of Beyond Meat, the company specializing in plant-based meat, founded by the vegan Ethan Brown and which was able to boast Bill Gates and Leonardo Dicaprio among its first financiers. Quotes plummet nearly 20% after the group announced it reported a net loss of $ 54.8 million, or 87 cents per share, in the third quarter of 2021, worse than the consensus-expected loss per share of 39 cents. , and even worse than the net loss of $ 19.3 million, or 31 cents per share, reported in the third quarter of 2020.
Beyond Meat also disappointed on the revenue front, with revenues coming in at $ 106.4 million, less than the $ 109.2 million expected from Wall Street. Finally, the outlook is also disheartening: for the fourth quarter the company expects net sales of between $ 85 million and $ 110 million, less than the $ 131.6 million expected by the consensus.