2024-08-09 20:02:45
The New York Stock Exchange on Friday ended a turbulent week that was the most volatile so far this year.
The Dow Jones Industrial Average rose 0.13% to 39,497.54, the tech-heavy Nasdaq rose 0.51% to 16,745.30 and the S&P 500 rose 0.47% to 5,344.16.
Wall Street suffered its worst trading day so far in 2022 on Monday as stronger-than-expected U.S. unemployment and a sudden appreciation of the yen due to Bank of Japan policy roiled global markets.
“It’s helped that there wasn’t a further unwinding of carry trade operations,” said Peter Cardillo of Spartan Capital, referring to a wave of unwinding of yen speculation on Monday that was fueled in part by the initial volatility of the week.
The “carry trade” involves borrowing money in a currency where the central bank charges a low interest rate, such as the yen, and then investing it in a currency with a higher yield.
Art Hogan of B. Riley Wealth Management said that following Monday’s global panic, “the decline in weekly jobless claims was the trigger for Thursday’s economic rebound.”
The analyst warned that Friday would be a “day without economic data” and that investors are now “focused on U.S. inflation next week.”
Investors need to position ahead of Wednesday’s Consumer Price Index (CPI) inflation reading and Tuesday’s Producer Price Index (PPI) reading.
Briefing.com’s median forecast is for the US monthly inflation rate to rise slightly to +0.2% in July, compared with -0.1% in June.
In the bond market, the yield on the 10-year Treasury bond fell to 3.93% from 3.98% the previous day.
Tech giants are regaining interest from buyers.
Apple rose 1.37% to $216.24, and Meta rose 1.60% to $517.77
Among semiconductor makers, Taiwan- and New York-listed TSMC rose 1.56% after reporting a 45% rise in sales in July, mainly due to strong demand for its chips designed to generate artificial intelligence.
Micron Technology rose 1.10% and Broadcom rose 1.73%.
However, competitors such as AMD (-1.50%) and Intel (-3.81%) were shunned.
Eli Lilly and Company surged again (+5.49%) after rising 9.48% the day before, as the company’s success in diabetes and obesity treatments will increase its sales by a further $3 billion this year.
Paramount Global Media Group’s shares rose 0.88% as investors expressed satisfaction with the company’s plan to cut 15% of its workforce, or about 2,000 people.
“This will involve duplication in marketing and communications (editor’s note, resulting from the merger with Skydance), as well as cuts in finance and legal departments…” Chris McCarthy, a manager at the group, told analysts.
Paramount Universal and Skydance Media announced their merger in early July.
French-Italian-American automaker Stellantis fell 1.35% but was up 0.36% in electronic trading after the close.
Stellantis, formed by the merger of PSA Peugeot Citroen and Fiat Chrysler in 2021, announced the end of production of the entry-level Ram 1500 Classic pickup truck at its plant in (northern) Michigan, which could result in losses starting in October, with the loss of nearly 2,500 jobs.
Dow member Amgen Laboratories fell 0.68% after cutting its annual forecast.
Second-quarter sales rose 20% to $8.4 billion, helped by the acquisition of Horizon Therapeutics, which specializes in spleen, autoimmune and inflammatory diseases. However, the $28 billion in acquisition costs will weigh on the books.
Amgen shares closed down 5% on Thursday.
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