Stock Market: Some Good News, Not Bad, Wall Street Closes Strong

Stock Market: Some Good News, Not Bad, Wall Street Closes Strong

(Photo: Getty Images)

MARKET REVIEWS. The New York Stock Exchange closed sharply higher on Thursday, buoyed by bargain hunting, slightly less sharp-than-expected US central bank (Fed) sentiment and some strong corporate results.

The Toronto Stock Exchange closed higher Thursday for the fifth straight session, approaching a three-week high on the back of a broad rally also seen in major US markets.

To (re)consult market news

Stock indices at closing

In Toronto, the S&P/TSX it rose 148.43 points (+0.73%) to 20,532.18 points.

In New York, the S&P500 it rose 79.11 points (+1.99%) to 4,057.84 points.

the nasdaq it collected 305.91 points (+2.68%) to 11,740.65 points.

the DOW it gained 516.91 points (+1.61%) to 32,637.19 points.

the loon it finished US$0.0025 (+0.3210%) at US$0.7829.

the oil it finished US$3.53 (+3.20%) at US$113.86.

Prayed it finished US$3.10 (+0.17%) at US$1,849.40.

the bitcoin decreased by US$295.45 (-1.00%) to US$29,356.08.

The context

“Investors who think the market is undervalued have come forward,” said Adam Sarhan of 50 Park Investments, along with speculative traders who bought to cover their positions.

After a sequence of eight consecutive weeks of decline, the first in almost a century (1923), the Dow Jones seemed capable of closing the week higher (+4.39% so far) on Thursday.

“This series of increases (throughout the week) is like a break,” said Adam Sarhan, “a counterpoint.”

“What inspires this move for some is that a lot of bad news has already been factored in” into market prices, Briefing.com’s Patrick O’Hare said.

The approaching end of the month also led, according to Adam Sarhan, to many managers making last minute (“window”) portfolio adjustments.

The New York market also maintained the good impression left by the minutes of the last Fed meeting, published this Wednesday.

It showed that the scenario, which emerged this week, of a central bank that could slow its monetary tightening from September so as not to overwhelm US economic activity, was realistic, according to Western Union’s Joe Manimbo.

Wall Street was also sensitive to the good figures published by several companies, particularly in the retail sector, which had started on the wrong foot last week with Walmart and Target.

department store chain Macy’s (M) (+19.31% to $22.92) did better than analysts expected, as did the home furnishings brand Williams Sonoma (WSM) (+13.06%) or the low cost distributor General Dollar (DG) (+13.71%), which even raised its forecasts for the year.

Suddenly, a buoyant wind blew throughout the distribution sector, benefiting Nordstrom (JWN) (+5.26%), which had also exceeded expectations the day before, but also in Walmart (WMT) (+2.13%), Target (TGT) (+4.33%) or house deposit (+3.15%).

With no echo of China and its lockdowns, the Ukrainian conflict that often takes a backseat in the news, “in this environment, the absence of bad news is good news”, summed up Adam Sarhan, “that is why the market is going up a lot.”

Operators also welcomed the announcement of the acquisition of remote (cloud) computing specialist VMware (VMW) (+3.17% to $124.36) by semiconductor maker Broadcom (+3.58% to $550.66), for an enterprise value of $61 billion.

The operation is a ray of sunshine for a sector that has just had a very difficult start to the year on the stock market.

The graphics card manufacturer Nvidia (NVDA) (+5.16% to $178.51) benefited from better results than analysts anticipated, even if their forecasts disappointed.

Twitter (TWTR) It was also sought (+6.35% to $39.52), after the announcement on Wednesday that Elon Musk had raised the direct contribution fee he put on the table to buy the social network, up to $33.5 billion, compared to the 21 initially planned.

The businessman waived the entirety of the $12.5 billion Tesla stock-backed loan he was originally scheduled to take out, earning the electric vehicle maker a payback. (TSLA) (+7.43% to $707.73).

Chinese e-commerce giant Alibaba (BABA) was hailed (+14.79% to $94.48) for its better-than-expected results. The group benefited, unlike many others, from China’s sanitary lockdowns, which boosted internet sales.

Manchester United (MANU)listed in New York, was sanctioned (-3.77% to 12.52 dollars), after reporting a quarterly loss and an increase in its net debt, which come at the heart of a dire season for the English soccer club.


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