2024-01-17 17:38:13
AP Photo/Seth Wenig
MARKET REVIEW. The New York Stock Exchange was moving in the red once more on Wednesday, seeming to realize that the Fed’s interest rate cuts might come later than expected, especially following the latest strong retail sales.
To (re)consult market news
Midday stock indices
In Toronto, the S&P/TSX decreased by -318.37 points (-1.52%) to 20,629.72 points.
In New York, the S&P 500 decreased by -27.82 points (-0.58%) to 4,738.16 points.
The Nasdaq fell -134.90 points (-0.90%) to 14,809.44 points.
The DOW decreased by -42.10 points (-0.11%) to 37,319.02 points.
The loon fell by -US$0.0018 (-0.2470%) to US$0.7394.
The oil fell -US$0.62 (-0.86%) to US$71.78.
L’or fell -US$22.10 (-1.09%) to US$2,008.10.
The bitcoin retreated -US$903.55 (-2.09%) to US$42,317.69.
In Toronto, the S&P/TSX posted a decline of -9.19 points (-0.05%) to 19,566.40 points.
In New York, the S&P 500 advanced +7.34 points (+0.17%) to 4,385.72 points.
The Nasdaq rose +121.08 points (+0.90%) to 13,639.86 points.
The DOW rose by +51.25 points (+0.15%) to 34,203.85 points.
The loonie dropped -US$0.0014 (-0.1929%) to US$0.7252.
Oil fell -US$0.64 (-0.83%) to US$76.73.
Gold was down -US$3.00 (-0.15%) to US$1,970.50.
Bitcoin rose +US$621.88 (+1.79%) to US$35,419.36.
The context
Tuesday, following a long weekend, the indices ended slightly lower while bond rates rose following cautious remarks from a representative of the American central bank on monetary policy.
Art Hogan, analyst for B. Riley Wealth Management, pointed out on Wednesday that the consensus in favor of a rate cut by the Federal Reserve (Fed) from March fell to less than 60% at the opening “compared to 80 % at the end of last week, according to the CME FedWatch tool.
This decline in bets on a rate cut promised to accelerate during the session following the publication of new consumption data, more dynamic than expected.
Retail sales in December in the United States increased by 0.6% instead of +0.4% expected in December.
“End-of-year purchases exceeded the most optimistic forecasts,” commented Robert Frick, economist for Navy Federal Credit Union.
But this momentum in consumption should still experience “a slowdown in the future”, estimates Andrew Hunter of Capital Economics because “the lower job creations and the delayed impact of rate increases will weigh more”.
Bond rates, which have resumed an upward path since Friday, were still tightening. The ten-year yield on Treasury bills climbed to 4.11% compared to 4.05% the day before.
The two-year rate jumped to 4.34% once morest 4.21% on Tuesday.
After Christopher Waller, Governor of the Fed, who was in no hurry to lower rates on Tuesday, investors will listen to what John Williams, of the New York Fed, will have to say during a speech, second part of the session.
Is popular, Boeing (BA) recovered 2.13% following having plunged by almost 8% the day before.
The FAA, the air regulation agency, has just indicated that it has inspected around forty Boeing 737 MAX 9s, which remain grounded for the moment, following the incident of the door detached in mid-flight on Alaska Airlines.
Tesla (TSLA) fell 2.44%, following the electric manufacturer lowered the price of some of its models in several European countries including France, Germany, the Netherlands, Norway and China.
Spirit Airlines (SAVE) collapsed (-23%) for the second session in a row following a court decision which, in the name of respect for competition, refused the takeover project by the low-cost airline JetBlue (-6.26% ).
The brokerage giant Schwab (SCHW) saw its shares fall by 4.20% following declining quarterly results, as did its turnover and the volume of its deposits.
TuSimple (TSP, -51% to US$0.34)a Californian autonomous driving start-up for trucks, announced in a press release on Wednesday that it was withdrawing from Nasdaq trading.
“Since TuSimple went public in 2021, there has been a significant shift in the capital markets, driven in part by rising interest rates and quantitative tightening, which has changed investor sentiment at the moment. “with regard to developing technological companies”, regrets the company which “believes that it can evolve better as a private company”. The last listing of the stock is scheduled for February 7.
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