2024-05-09 18:20:00
The New York Stock Exchange, which started the session hesitantly, concluded clearly in the green on Thursday, supported by a drop in bond yields following stronger-than-expected weekly US job claims.
The Dow Jones signed its sixth consecutive positive session, gaining 0.85% to 39,387.76 points. The technology-dominated Nasdaq rose 0.27% to 16,346.26 points and the broader S&P 500 rose 0.51% to 5,214.08 points.
“We had a nice recovery this session. This is mainly due to weekly jobless claims increasing, which helped lower bond yields,” explained Peter Cardillo at Spartan Capital.
Weekly US jobless claims jumped to a nine-month high of 231,000, while analysts expected 214,000 new claims.
These data paradoxically brought some relief to the heart of the stock market, which was poised to start falling following several disappointing corporate results.
A rise in the number of jobless claims “might be a sign that labor market conditions are softening,” said Nancy Vanden Houten of Oxford Economics.
Slowing down the labor market is one of the goals of the US central bank (Fed) in the fight once morest overheating and inflation. This reassures the stock market, which is planning at least one interest rate cut by the end of the year.
Bond yields fell significantly to 4.45% compared to 4.49% for the ten-year yield.
Another factor that lowered interest rates and restored the luster of stocks was a well-subscribed $25 billion 30-year Treasury bond issue. “Demand for these bonds was slightly above average, this eased pressure on the bond market,” commented Peter Cardillo.
On the value side, the securities of several companies were sanctioned following disappointing results or prospects.
This is the case with accommodation reservation platform Airbnb, which fell 6.87% to $147.05 while predicting sales lower than analysts expected for the second quarter of at least $2.68 billion.
However, the company claims to be experiencing “robust demand for travel”, especially with the Olympic Games being held in Paris this summer.
British group Arm, a subsidiary of Japan’s SoftBank and champion of microprocessor architectures, fell 2.34%.
The quarterly result exceeded expectations with sales of 928 million dollars when analysts were betting on 866 million. But the estimates for the year disappointed investors.
Video game platform Roblox collapsed 22.06% to $30.42, while downgrading activity forecasts for the year, raising doubts regarding consumer enthusiasm overall.
In the first quarter, the company nevertheless saw that the loss decreased and the turnover increased from 655 million dollars a year ago to 801 million.
Bank stocks ended in the green such as Bank of America (+1.54%) or Citigroup (+0.92%), while for the first time in five weeks 30-year mortgage rates – the norm in the US – have fallen, which might revive demand following loan.
The highly volatile stock of Donald Trump’s media company, DJT, rose 10.41% to $54.39, following announcing that it had appointed a new auditor. The previous auditor had been blacklisted by the stock exchange watchdog, the SEC, for fraud.
Spanish construction giant Ferrovial got off to a rocky start in its New York IPO, falling 17.10% to $40.
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