2023-07-20 16:47:54
(Photo: Getty Images)
MARKET REVIEW. The Toronto Stock Exchange retreated late Thursday morning, driven by losses in its information technology sector, while the major US indices traded in dispersed order.
The New York Stock Exchange opened in scattered order on Thursday, with the Nasdaq and S&P 500 being penalized by lackluster results from Tesla and Netflix, while the Dow Jones continued to advance boldly, following eight positive sessions in a row.
Stock market indices at noon
In Toronto, the S&P/TSX fell -60.99 points (-0.30%) to 20,430.18 points.
In New York, the S&P 500 lost -11.58 points (-0.25%) to 4,554.14 points.
The Nasdaq lost -171.30 points (-1.19%) to 14,186.72 points.
The DOW increased by +280.48 points (+0.80%) to 35,341.69 points.
The loon was down -0.001$5 (-0.1927%) at US$0.7585.
The oil fell -0.56$ (-0.74%) to 74.79$.
L’or was down -US$11.10 (-0.56%) at US$1,969.70.
The bitcoin was down -US$160.44 (-0.54%) to US$29,802.89.
To (re)consult market news
The context
Tesla beat expectations in the second quarter, whether for its net income or its turnover, but the manufacturer of Austin (Texas) saw its margins contract under the effect of price reductions to gain market share.
JPMorgan analysts lowered their price target, saying the deceleration in margins, which might be accentuated by further price cuts, mentioned by boss Elon Musk on Wednesday, no longer justified its current valuation.
As for Netflix (NFLX)it pays for the disappointment linked to its turnover, which is lower than expected, even if the platform surprised by gaining 5.89 million net users over three months.
The group from Los Gatos (California) is also suffering from profit taking, logical following the title rose by more than 62% in four months.
As for Tesla (TSLA)its capitalization has more than doubled (TSLA, +136%) since the beginning of the year.
Therefore, “when reading the results, we focus more on the bad elements than on the good ones”, explained, in a note, Patrick O’Hare, of Briefing.com.
Netflix and Tesla “are really at the center of everything in the equity market” at the start of the session, commented Karl Haeling of LBBW. “The Nasdaq is marking time” due to the bad fortune of these two heavyweights, “which is dragging the S&P” 500.
“The market has gone too high ‘in too short a time’ and is ripe for a correction,” O’Hare explained.
Another value at half mast, the Taiwanese semiconductor giant TSMC (TSMC34.SA, -3,90%)listed in New York, which expects a significant slowdown in its turnover due to lower consumer demand for electronic products.
On the other hand, investors welcome the publication ofIBM (IBM, +3,80%)which improved its margins in the second quarter and shows ambition in artificial intelligence.
The Dow Jones resisted, in particular thanks to so-called defensive values, that is to say less sensitive to the economic situation, such as the group of chemicals and materials for industrialists. Dow (DOW, +0,42%) or Johnson & Johnson (JNJ, +4,63%)which did better than expected in the second quarter thanks to its medical devices business.
The flagship index of the New York market is thus moving towards a ninth consecutive session of increase, which would be a first since September 2017.
Elsewhere on the coast, United Airlines (UAL, +3,10%) was advancing following seeing its profit triple in the second quarter, thanks to the increase in revenue per passenger, but also to a drop in fuel prices compared to the same period last year.
As for American Airlines (AAL)it moved in the opposite direction. (AAL, -5,75%)although it did better than expected and raised its guidance for the full year.
Like several other regional banks since the beginning of the week, the establishment of Salt Lake City (Utah) Zion’s (ZION, +9,61%)heckled during the spring banking crisis, reported a stabilization of its activity, as well as an increase in its deposits.
The bond market is gloomy, in a consolidation phase before the meeting of the American central bank (Fed) next week, according to Karl Haeling.
The yield on 10-year US government bonds rose to 3.82%, from 3.74% at the close the day before.
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