#Wall #Street #PreOpen #Drop #Sight #Inflation #Sends #Chills
(Photo credits: Flickr – Scott Beale)
(AOF) – Wall Street is expected to fall sharply at the open on the back of European markets. Investors reacted very badly to the announcement that US inflation beat expectations in May. Consumer prices rose sharply again last month, reducing household purchasing power and weakening the economy. This bad news could lead the Fed to further accelerate its monetary normalization, even if that means penalizing growth. At around 3pm, S&P500 and Nasdaq 100 futures fell 1.43% to 3,960.25 points and 1.72% to 12,091.5 points.
yesterday on wall street
US markets closed sharply lower after the ECB announcements. Not only will it raise its main policy rate by 25 basis points in July, but it has opened the door for a 50 basis point rate hike in September. These “hawkish” statements from the ECB led to a further increase in long rates in Europe and the United States. The US 10-year bond was thus above the 3% threshold. The Dow Jones lost 1.94% to 32,272.79 points and the Nasdaq Composite lost 2.75% to 11,754.23 points.
macroeconomic figures
The consumer price index increased by 1% in May after +0.3% in April. It is above the Reuters consensus of +0.7%. It increased 8.6% in one year against the 8.3% expected. Excluding energy and food, inflation rose to 0.6% in May in one month against a consensus of +0.5%.
University of Michigan Consumer Confidence Index for June (first estimate) is due at 4 p.m.
The values to follow
amazon.com
Amazon.com is considering withdrawing from an appeal over the rights to broadcast Indian Premier League cricket matches, ceding one of the world’s most popular sports competitions to rivals ranging from Walt Disney Co. to Mukesh Ambani’s Reliance Industries Ltd. Bloomberg and Reuters report. . The rights had been estimated at an unprecedented value of $7.7 billion.
Costco
Costco Wholesale is considering raising its membership fees after announcing a record 90% renewal rate. The last time the warehouse store owner increased their membership fees was in June 2017. Historically, fees increase every five and a half years. Gold Star and Business memberships are currently $60 per year, and Executive membership, which includes additional offers, is $120.
Coti
Coty plans to resume “little by little” its return to shareholders. The perfume and cosmetics company has made “substantial” progress in reducing its debt and has strengthened its operating performance. Coty is in the process of reaching agreements with several banks to launch a $200 million share buyback program that it plans for 2024. The company reduced its debt to 4.7 times its Ebitda as of the end of the third quarter of fiscal year 2022. Its goal is to double debt by 2025.
spiritual airlines
Spirit Airlines rose 2% in pre-opening on Wall Street, thanks to a favorable rating from analysts. Indeed, JPMorgan upgraded its recommendation from Neutral to Overweight on the stock, while raising its price target from $24 to $30. The broker believes the likelihood of a merger with JetBlue at Frontier’s expense is growing.