Wall Street Pre-Open AOF Analysis – Stocks Down, Rates Up Ahead of Fed


(AOF) – Wall Street is expected to fall at the opening in the wake of the rise in long rates. Caution prevails pending the Fed’s monetary policy decision tomorrow night. The markets anticipate a rise of 75 basis points. A 100 basis point hike would be unwelcome. In economic terms, the latest real estate figures are mixed. Building permits fell 10% in August while housing starts jumped 12.2%. Around 2:40 p.m., futures on the S&P500 and Nasdaq 100 fell 0.7% to 11,925 points and 0.79% to 11,931.25 points.

Yesterday on Wall Street

US equity markets closed in the green on the eve of the Fed’s monetary policy meeting which is due to be held until Wednesday. Investors are anticipating a further 75 basis point hike in key rates to try to curb persistent inflation. They will be watching what central bank chairman Jerome Powell has to say about rising prices and the health of the US economy. The latest indicators show that it seems ready to tip into recession. The Dow Jones gained 0.64% to 31,019.68 and the Nasdaq gained 0.76% to 11,535.02 points.

Macroeconomic figures

1.517 million building permits were registered in August on an annual basis in the United States, compared with a consensus of 1.61 million and 1.685 million in July. 1.575 million housing starts were recorded in August on an annual basis, compared with a consensus of 1.445 million and 1.404 million in July.

The values ​​to follow

Apple

Apple has announced that it will increase the prices of applications and in-app purchases on its App Store starting next month in the whole of the euro zone and in certain countries in Europe (Poland, Sweden), Asia and from South America. Renewable subscriptions are not affected. The iPhone maker took this decision due to the weakness of the currencies of these countries against the dollar.

Beyond Meat

According to the American news agency AP, the chief operating officer of the vegan food group Beyond Meat, Doug Ramsey, is charged with assault and battery and threatening terrorism after a fight outside a football match during which he would have bitten a man’s nose. The game was between the Arkansas Razorbacks and the Missouri State Bears in Arkansas.

Ford

The title of the American automaker Ford lost 4.69% in pre-market trading to 14.23 dollars. The group warned investors on Monday that it expects to incur an additional $1 billion in costs in the third quarter due to inflation and supply issues it is encountering.

Goldman Sachs

Goldman Sachs has announced the arrival in the European Union of its Transaction Banking (TxB) activity. « The expansion of this service offering, initially launched in the US in 2020 and then in the UK in 2021, will strengthen Goldman Sachs’ existing relationships with its clients who have banking needs in the EU, and also allow it to serve new customers on the European continent », explains the investment bank.

Pepsico

U.S. soft drink and snacks specialist Pepsico told Reuters in a statement that it has halted production of Pepsi, 7UP and Mountain Dew in Russia nearly six months after making a commitment to do so. “All concentrates have been exhausted in Russia and production has ended,” a PepsiCo spokesperson said Sept. 8. This decision is « in line with the announcement we made in March 2022 », he added.

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