2023-07-10 22:15:14
(Photo: Catherine Charron)
MARKET REVIEW. The New York Stock Exchange ended higher on Monday, pulled by investors’ appetite for neglected stocks, in a wait-and-see market ahead of a crucial inflation indicator on Wednesday and the start of the earnings season on Thursday.
The Toronto Stock Exchange’s flagship index closed lower on Monday, dragged down by losses in the telecommunications and utilities sectors, while major US indexes rose.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX lost 8.59 points (-0.04%) to 19,822.45.
In New York, the S&P 500 gains 10.58 points (+0.24%) to 4,409.53 points.
The Nasdaq increase of 24.77 points (+0.18%) to 13,685.48 points.
The DOW gains 209.52 points (+0.62%) to 33,944.40 points.
The loon lost 0.0004 (-0.05%) to US$0.7538.
The oil down US$0.65 (-0.88%) to US$73.21.
L’or falling US$1.60 (-0.18%) to US$1,930.90.
The bitcoin earns US$519.10 (+1.72%) to US$30,707.63.
The context
“There is indecision” on Wall Street, noted Angelo Kourkafas, of Edward Jones. “The market is in a waiting position before the inflation figures (CPI index expected on Wednesday) and the start of the results season”, Thursday.
For once, the giant capitalizations of the Nasdaq were subject to profit taking, while investors shifted to so-called defensive stocks, i.e. theoretically less sensitive to the economic situation. .
Caterpillar (CAT, +3.63%), the DIY brand Home Depot (HD, +7.47%) or the industrial conglomerate Honeywell (HON, +4.48%) were thus in the spotlight, whileAmazon (AMZN, -2,65%), Alphabet (GOOG, -3.27%) or Microsoft (MSFT, -5.39%) folded the canopy.
Another indicator of portfolio adjustments, the index Russell 2 000composed of small caps, did better on Monday than the three major indices of the New York market (RTY=F, +32.70%).
Meta (META, +3.57%) was the only tech ogre to survive, following its new social network, Twitter competitor Threads, passed the 100 million user mark, less than five days following its launch. launch. Never has an application reached this threshold so quickly.
For Angelo Kourkafas, the good direction of the market on Monday is also due to the producer price index in China, which came out down 5.4% over one year in June, its lowest level since December 2015.
“Historically, producer prices in China are a leading indicator of US prices”, because the United States is by far the largest importer of Chinese products, recalls the analyst. “So that’s one more number that goes in the direction of disinflation.”
This indicator favored a clear easing of bond yields. The yield on 2-year US government bonds fell to 4.86% from 4.94% on Friday at the close.
On the stock market, several banks fell following the intervention of the vice-president of the American central bank (Fed), Michael Barr, who notably proposed to impose on medium-sized establishments to strengthen their capital.
The measure would concern in particular KeyCorp (KEY, -0.09%) or PNC (-0.25%). On the other hand, the capital requirements would remain unchanged for the smallest brands, such as Comerica (CMA, +0,68%), Western Alliance (WAL, +0,60%) or Zion’s (ZION, +0,58%).
The laboratory Novavax jumped (NVAX, + 29.46%) following indicating that the Canadian government would pay him some 350 million dollars in compensation for doses of coronavirus vaccine which he ultimately never took delivery of.
The company of activist investor Carl Icahn, Icahn Enterprises, recovered (IEP, +20.20%). The Wall Street Journal reported that the octogenarian had agreed to decorrelate personal loans from his company, which offers a breath of fresh air to Icahn Enterprises.
The group had been accused, in early May, of inflating the value of some of its assets by the investment fund Hindenburg Research, which had caused a drop of nearly 40% in the share price.
The airline company Spirit gained altitude (SAVE, +2.07%), while its possible acquirer, jetBlue, renounced its alliance with American Airlines (AAL, +1.20%) to increase its chances of receiving the green light from regulators for this takeover.
Mattel was sought following (MAT, +2.49%), ahead of the July 21 theatrical release of the film “Barbie”, on which the toymaker has bet big and which is already making a lot of noise .
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