May 15, 2008
Wall Street takes advantage of the moderate increase in inflation
Wall Street returned from its highest today, but has regained ground Wednesday, rising less than expected in consumer prices in April the USA away with the dual spectre of an acceleration of inflation and higher interest rates.
The sectors of distribution and construction, more likely to receive a boost of maintaining even a lower cost of borrowing, recorded the best performance of the meeting.
After sold 0.34% Tuesday due to fears raised by the new record crude, the Dow Jones gained 66.20 points, or 0.52% to 12898.38 points, a level nearly 100 points below record day of 12.993,15.
At a meeting characterized by low volumes, the S & P 500, broader, advanced 5.62 points to 1.408,66 and the Nasdaq Composite has won only 1.58 point (+0.06% ) At 2.496,70 points.
The results and outlook tried reassuring distributor Macy's and the loss less strong than expected by Freddie Mac, the number two U.S. mortgage refinancing, have also supported the document.
Macy won 3.6% to $ 24.93 and the S & P in the distribution sector 1.6%. Freddie Mac, considered a barometer of the housing market, jumped 9.2% to 27.25 dollars and the Dow Jones in the construction sector grew by 2.7%.
"The speakers were concerned before the inflation figures. Once it turned out that they were better than expected, the market began its march forward," noted Eric Kuby, in charge of investment in North Star Investment Management.
Wall Street erased some of its gains in the last trade "because another locomotive", said Eric Kuby.
Consumer prices rose by 0.2% in April to the USA, an increase slightly below expectations, thanks to stable energy prices, showed the statistics released Wednesday by the Department of Labor.
Economists polled by Reuters were anticipating an average increase of 0.3% of the index. The core index, which excludes energy and food costs, rose by only 0.1%, twice less than expected.
The Nasdaq was sealed by a decline of 3.3%, to $ 52.78, the video game publisher Electronic Arts, who announced Tuesday evening of the annual forecast below expectations.
Deere, the first global manufacturer of agricultural machinery, fell 9.9% to $ 81.25 after it warned that its result for the full year would be affected by rising costs of materials and possible shortages components.
The number of shares that changed hands was only 1.19 billion on the New York Stock Exchange, the second lowest level since the beginning of the year and a figure well below average estimated at 1.9 billion per day.
by erectusplus at 10:49 AM |
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