2023-12-11 21:49:08
New York (AFP) – The New York Stock Exchange recorded another positive session on Monday, pushing the Dow Jones to its highest closing level in almost two years, on a market which is awaiting the central bank meeting quite calmly. American (Fed).
The Dow Jones gained 0.43%, the Nasdaq index gained 0.20% and the broader S&P 500 index gained 0.39%.
Although remaining on six consecutive weeks of gains, the indices managed to put in an additional boost, while many were expecting a consolidation.
The Dow Jones ended at a high since the beginning of January 2022, the S&P 500 since the end of March 2022.
“That says something regarding the state of the market,” commented Maris Ogg, an analyst at Tower Bridge Advisors. “It remains on an upward trend.”
“We’re starting a new week and the momentum is still there,” added Art Hogan, analyst at B. Riley Wealth Management. “The market is cautiously optimistic ahead of events that will be catalysts.”
This analyst was referring to the publication of the CPI price development index for November in the United States, which will be published on Tuesday, and to the Fed’s communication, expected on Wednesday.
The New York market’s stubbornness to climb “is due to the fact that investors are not expecting any surprises from the Fed”, underlined Sam Stovall, CFRA analyst.
“They know that she is done raising rates and now the only question is when they will lower them,” he continued.
Operators are counting on five reductions in the key rate in 2024, the first in May.
The bond market stabilized on Monday following a roller coaster week. The yield on 10-year US government bonds stood at 4.23%, compared to 4.22% at Friday’s close.
On the stock market, for once, the giant capitalizations of the technology sector were subject to profit taking, while the Nasdaq was supported by the rest of the values in the index.
Among them, the semiconductor manufacturer Broadcom (+9.00%), which benefited from a favorable opinion from Citigroup.
Its competitors AMD (+4.26%), Intel (+4.31%) and Qualcomm (+2.35%) also had the wind at their backs.
Conversely, Nvidia (-1.85%), Meta (-2.24%) and Alphabet (-1.42%) finished in the red.
In addition to profit-taking, this rotation is also due to speculation that the weighting of technological “mega caps” will be revised downwards during the quarterly review of the Nasdaq index on Monday, according to Art Hogan.
Investors would thus carry out portfolio rebalancing before maturity, according to the analyst.
More generally, Wall Street might have completed its traditional end-of-year surge in advance, with the last weeks being devoted to arbitrage, noted Maris Ogg.
On the stock market, Macy’s soared (+19.44%), following the Wall Street Journal reported a takeover offer for the department store chain by two investment companies, Arkhouse Management and Brigade Capital Management.
The information benefited Macy’s rivals, in particular Nordstrom (+7.16%) and Kohl’s (+7.02%).
Occidental Petroleum (+1.04%) capitalized on the announcement of the purchase, for 12 billion dollars, of the oil and gas group CrownRock, very present in the Permian basin, the first shale oil reserve in the United States.
The health insurer Cigna jumped (+16.68%), in reaction to information from the Wall Street Journal according to which the Bloomfield (Connecticut) group has abandoned the acquisition of its competitor Humana (-1.04%) . A transaction that would have united two behemoths with a total capitalization of more than $135 billion. Cigna also announced a $10 billion share buyback program.
Nike (+2.33%) was supported by an increase in recommendation from Citigroup, which anticipates a recovery in the sports equipment manufacturer’s margins and is counting on the Olympic Games to create momentum in 2024.
© 2023 AFP
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