Home Business News Dow Jones futures contracts ‘are trading relatively stable’

Dow Jones futures contracts ‘are trading relatively stable’

by LLB Finance Reporter
12th Jul 23 9:57 am

Dow Jones managed to advance by 0.91% yesterday, to reach the level of 34,261 points. The gains in the stock markets come with anticipation of the CPI numbers for the month of June.

On the other hand, the Dow Jones futures contracts are trading relatively stable from the level of 34461 points during the Asian session today, with anticipation of the new data.

While inflation is expected to decline significantly.

Inflation is expected to decline to 3.1% from 4% in May at the annual reading level, while core inflation, which excludes food and energy prices, is expected to decline to 5% from 5.3% recorded in May as well. Inflation is also expected to rise by 0.3% on a monthly basis in June at the level of the two previous indicators.

Samer Hasn, Market Analyst and part of the Research Team at XS.com said, “The markets are hoping that today’s inflation numbers will reinforce the hypothesis that the cycle of raising interest rates is about to end, with inflation continuing to decline.

“If today’s inflation figures come at or below analysts’ expectations, the hypothesis that the expected hike in interest rates at the next meeting of the Federal Reserve on July 26 will be the last this year is more likely, despite what came in the minutes of the last meeting in June, where members indicated the need to raise interest rates twice this year to combat high inflation.

“As for the most active stocks yesterday, industrial conglomerate stock, 3M, led the gains, up by 4.87%, after Bank of America revised the stock’s rating to “neutral” from “underperform” previously.

“Also, we witnessed a rise of Boeing stock by 2.55% after the number of aircraft orders delivered for the first half of this year, which came with an improvement of 23% compared to last year. Finally, the cloud computing stock of Salesforce rose after the company talked about its intention to raise the prices of its services.

“Yesterday’s gains for the Dow Jones came despite the rise in bond yields. As we saw a rise in the yield on two-year Treasury bonds to 4.902% during yesterday’s peak, only to decline later.”

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