NY Stock Market Ends Slightly Lower, Giving Back Gains Amid Rising Interest Rates

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market closed slightly lower ahead of the enactment of a $1 trillion infrastructure investment bill and the US-China summit.

On the 15th (local time), the Dow Jones Industrial Average fell 12.86 points (0.04%) to 36,087.45, the S&P 500 index dropped 0.05 points (0.00%) to 4,682.80, and the Nasdaq index declined 7.11 points (0.04%) to 15,853.85.

The major indices started the day on an upward trend, but as the US 10-year Treasury yield rose to the 1.6% range, they slipped into slightly lower territory in the afternoon.

Last week’s release of the October Consumer Price Index (CPI) showed a 6.2% increase, the highest in 30 years, raising inflation concerns. The direction of the stock market is expected to be determined by this week’s retail sales data, industrial production figures, and the earnings reports of retail companies such as Walmart, Home Depot, Macy’s, Lowe’s, and Target.

The sectors leading the market today were utilities and consumer staples. Meat producer Tyson Foods rose 3.55% on strong earnings. Oatly, the oat milk company, plunged 20.8% after forecasting poor earnings due to soaring grain prices and rising inflation.

Although oil prices fell slightly today, energy stocks such as Kinder Morgan, Phillips 66, and Chevron all showed strength.

Dollar Tree, a $1 store, surged 14.28% after Deutsche Bank raised its target price citing activist investor purchases. Despite profit declines due to inflation concerns, Dollar Tree had previously announced plans to increase sales of higher-priced products.

Tesla closed down 1.94% after CEO Elon Musk hinted at the possibility of additional stock sales the previous day. Tesla’s stock price fell as much as 5.3% intraday, breaking below $1,000 and a market capitalization of $1 trillion, but the decline narrowed in the afternoon, avoiding the risk of entering a bear market.

Rivian, emerging as a competitor to Tesla, surged about 14.9%, becoming the world’s third-largest automaker by market capitalization after Tesla and Toyota.

Boeing rose sharply by 5.4% amid optimism over the resumption of deliveries of the 787 Dreamliner aircraft. News that China’s approval for modifications to the 737 Max aircraft is imminent also boosted Boeing’s stock price.

Office-sharing company WeWork’s stock rose 3.3% reflecting a reduction in third-quarter losses.

Chinese companies listed on the New York Stock Exchange showed weakness ahead of the US-China summit. Alibaba fell 0.1%, Didi Chuxing 5%, Baidu 1.1%, and JD.com 1.5%.

Although US President Joe Biden signed the $1 trillion infrastructure investment bill, related stocks showed mixed performance. Caterpillar fell 0.74%, Nucor dropped 1.9%, but John Deere rose 0.64%.

This content was produced with the assistance of AI translation services.