2023-08-10 19:43:22
(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange was up sharply on Thursday, rebounding following two sessions of decline, while inflation in the United States did not exceed expectations.
The Toronto Stock Exchange continued its rise Thursday noon, with the help of financial, technology and telecommunications stocks.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX gained 100.87 (+0.50%) to 20,375.90 points.
In New York, the S&P 500 took 15.11 points (+10.34%) to 4,582.82 points.
The Nasdaq rose by 40.55 points (+0.34%) to 13,768.05 points.
The DOW gained 159.18 points (+0.45%) to 35,299.41 points.
The loon rose from +0.0009$US (+0.1759%) to 0.7459$US.
The oil lost US$0.47 (-0.56%) to US$83.93.
L’or took US$1.30 (+0.0666%) to US$1,951.90.
The bitcoin fell from US$308.98 (-1.04%) to US$29,448.23.
Context
Inflation in July over one year accelerated to 3.2% once morest 3% in June. This is the first time in 13 months that annual inflation has risen.
Over one month, it remained stable at +0.2%. Analysts were expecting +3.3% over one year and +0.2% over the month.
The positive signal comes from underlying inflation (excluding energy and food), which slowed to 4.7% once morest 4.8% over one year.
For investors, these figures should encourage the US central bank (Fed) to keep interest rates high without raising them in September.
“While inflation is still well above target and the annual change in the CPI index accelerated in July, underlying prices are moving in the right direction,” said Rubeela Farooqi, of HFE.
“This is good news for monetary policy makers,” she adds, while emphasizing that “tight policy on interest rates is justified for some time to bring prices back towards the target of 2 %”.
For Ryan Sweet of Oxford, the new inflation figures should “not change the plans of the central bank”. “The Fed will continue to adopt a hawkish tone because it wants to prevent an easing of conditions in the financial markets,” he commented.
“Nevertheless, we expect the Fed to avoid rate hikes in September and November when inflation is expected to decelerate further,” said the analyst who believes the cycle of Fed rate hikes is ending. .
In the process, yields on ten-year Treasury bills eased to 3.98% once morest 4% the day before.
After two days of lows on Wall Street, investors regained confidence and took advantage of the decline in share prices to return in an upward movement.
“Will this rebound effort with bearish buying hold or not? We’ll know at the closing,” doubted Patrick O’Hare of Briefing.com.
On Thursday, another indicator helped the indices climb into the green: jobless claims rose to their highest level in a month at 248,000 (+21,000) once morest 230,000 expected.
This easing of the labor market is seen as an asset by the markets, which associate it with less pressure on prices.
On the stock market, the rise in the indices was pulled on the Nasdaq by tech megacaps such as Apple (AAPL) (+1.26% to US$178.42), Alphabet (GOOG) (+1.62% to US$130.88) or Meta (META) (+1.97% to US$307.42).
The announcement of the takeover by the luxury brand Coach (Tapestry group which also owns Kate Spade) of the Capri group, parent company of Michael Kors, Versace and Jimmy Choo for 8.5 billion dollars, caused the stock to rise. Capri Holdings (CPRI) from 56% to US$54 around 10:00 a.m.
The proposed takeover price per share is $57. However, Tapestry (TPR) was down 11.76% at US$36.40.
The entertainment giant Disney (DIS) gained 1.65% to US$90.46 despite the loss of 10 million subscribers to its Disney+ streaming service, announced the day before. The subscription price increases decided in the process satisfied investors.
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