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MARKET REVIEW. Boosted by technology and the energy sector, the New York Stock Exchange concluded Thursday in the green, for the first time in four sessions.
The Toronto Stock Exchange’s flagship index ended the session essentially unchanged, as strength in the energy sector was offset by weakness in other groups.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX ended down 5.14 points (-0.03%) at 20,188.19 points.
In New York, the S&P 500 closed up 21.27 points (+0.53%) at 4,012.32 points.
The Nasdaq rose 83.33 points (+0.72%) to 11,590.40 points.
The DOW closed up 108.82 points (+0.33%) at 33,153.91 points.
The loon rose by US$0.0004 (+0.0480%) to US$0.7383.
The oil advanced US$1.70 (+2.30%) to US$75.65.
L’or ended down US$11.90 (-0.65%) at US$1,829.60.
The bitcoin closed down US$86.88 (-0.36%) at US$23,849.87.
The context
“The session was on a rollercoaster ride, but the market rebounded mostly on tech and a return to higher energy prices,” said Art Hogan of B. Riley Wealth Management.
Bond yields eased following the tensions of the last few sessions, fueled by statements from members of the Fed and by the minutes of its last monetary meeting.
The ten-year rate fell to 3.87% from 3.91% the day before, around 4:15 p.m.
The rise in tech stocks was driven by positive surprises from the microprocessor and software maker Nvidia (NVDA)whose optimism regarding the development of artificial intelligence has won over the entire semiconductor industry.
The title of the Santa Clara group in California soared 14.02% to $236.64 US.
The fourth quarter sales and results of this graphics card specialist exceeded expectations, despite a 46% drop in its turnover in video games. And for the first quarter, Nvidia expects 6.5 billion dollars in sales, once morest 6.35 billion forecast by analysts.
“From start-ups to large companies, there is a growing interest in the versatility and capabilities of AI,” CEO Jensen Huang said in a statement.
Other heavyweights in the sector saw their shares rise as well,AMD (AMD, +4.10% to US$79.75) at Micron Technology (MU, +3.11% to US$58.75) passing Intel (INTC, +0.55% to US$25.61) and Qualcomm (QCOM, +1.82% to US$126.20). Mega-cap Microsoft (MSFT, at US$254.77) gained 1.30%.
On the macro-economy front, the data was mixed on Thursday “with a downward revision of US growth in the 4th quarter, more sustained quarterly inflation and a moderation in weekly jobless claims,” summed up Art Hogan.
Weekly jobless claims were lower than expected at 192,000, falling 3,000 and still showing a very tight labor market, adding to the tenacity of inflation.
At the same time, the second estimate of US GDP growth in the last quarter of 2022 has been revised down to +2.7%, once morest +2.9% initially estimated, reflecting weaker consumer spending.
PCE inflation, the Fed’s preferred measure of rising prices, has been revised upwards, showing consumer price growth of 3.7% in the fourth quarter of 2022 compared to the third quarter, compared to 3 .2% initially announced.
Friday, a host of important indicators will be watched: for January, the PCE index, household spending and sales of new homes, and for February, consumer confidence measured by the University of Michigan.
Elsewhere on the coast, the manufacturer of electric vehicles Lucid (LCID) plunged 11.92% to US$8.79 following missing its Q4 2022 deliveries target. Rivian (RIVN) dropped 4.42% to US$18.18.
Laboratories Modern (MRNA) lost 6.70% to US$147.57, as the vaccine manufacturer announced worse-than-expected sales and results in the fourth quarter of 2022, in particular due to a reduction in the volume of serum delivered once morest Covid 19 .
Inflation has reduced the appetite of pizza eaters, which has hit Domino’s Pizza (DPZ, -11.65% to US$307.86), whose sales disappointed, and rubbed off on the brand’s title Papa John’s (PZZA, -6.11% to US$86.70).