FRANKFURT/NEW YORK, Dec 9 (Reuters) – The New York Stock Exchange closed in the red on U.S. producer price data. The Dow Jones Standard Values Index fell 0.9% to 33,476 points on Friday. The tech-heavy Nasdaq fell 0.7% to 11,004 points. The broad S&P 500 lost 0.7% to 3,934 points. Producer prices rose more slowly and the annual rate of 7.4% is the lowest since the middle of last year. Economists polled by Reuters had expected a slightly steeper decline to 7.2% after an upward revision of 8.1% in October.
Producer prices apply as soon as they leave the factory, ie before the products are processed or marketed. They provide early signals for the evolution of consumer prices. These, in turn, are an important factor that could influence the US Federal Reserve’s interest rate decisions over the coming week. Above all, investors are waiting for information on the Fed’s future monetary policy. “The focus is on when the Fed will stop the tightening cycle. In the event of a recession, we could even see a reversal and rate cuts later next year,” said investment expert Brian Klimke from broker and financial advisor Cetera Financial.
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After the release, US government bonds soared from deposits. The yield on the 10-year bond US10YT=RR rose to 3.5912% from 3.493% the previous day. At the same time, the price of gold rose XAU=0.4% to $1795.19 per ounce.
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In terms of individual stocks, Netflix shares climbed 3.1%. Shares of the US streaming service surged after positive analyst feedback on its new ad-supported subscription. “After a decline in subscribers and growth in revenue, Netflix is now using all the arrows in its quiver,” wrote experts at US bank Wells Fargo. Netflix, after much hesitation, is offering an ad-supported subscription with lower monthly fees starting in early November. It also introduces fees for customers who want to share their Netflix subscription with people outside their own household.
Investors also jumped into shares of US software company DocuSign after the quarterly figures. Papers from the digital signature specialist jumped more than twelve percent. After Thursday’s market close, the company reported quarterly sales that beat analysts’ expectations. Experts at US investment bank Piper write that there are “signs of stabilization” at DocuSign.
Broadcom was also in demand. Shares of the semiconductor maker rose 2.6% after a new sales forecast for the current quarter. Shares of yoga apparel group Lululemon, on the other hand, fell off the deposits and lost 12.8%. The Canadian company forecasts earnings and revenue for the last quarter of 2022 at the lower end of average market expectations.
|T-bonds||Price Update||absolutely change||Performance Update||Return the day before|
Statistics for Nyse and Nasdaq
|Number of shares traded in millions||902||4,232|
|Number of shares with price gains||1,281||1,655|
|Number of shares with price losses||2,800||2,866|
|Number of unchanged values||246||562|
Wall Street down after US price data
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