Wall Street closes sharply higher

Wall Street closes sharply higher

(New York) The New York Stock Exchange closed sharply higher on Thursday, fueled by bargain hunting, investor sentiment that the US central bank (Fed) is a little less radical than expected, and some good corporate results.

The Dow Jones gained 1.61% to 32,637.19 points, the NASDAQ index 2.68% to 11,740.65 points and the broader S&P 500 index 1.99% to 4,057.84 points.

“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 appeared on Thursday capable of closing the week higher (+4.39% so far).

“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.

According to Adam Sarhan, the approach to the end of the month also played a role in many managers making last-minute adjustments to their portfolios (“showcase”).

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.

The department store chain Macy’s (+19.31% to 22.92 dollars) did better than expected by analysts, as did the decoration brand Williams Sonoma (+13.06%) or the distributor’s low-priced Dollar General (+13.71%), which even raised its forecast for the year.

A buoyant wind suddenly blew across the retail sector, benefiting Nordstrom (+5.26%), which had also beaten expectations the previous day, but also Walmart (+2.13%), and Target (+4.33 %) or Home Depot (+3.15%). ).

Without the echo of China and its confinements, of the Ukrainian conflict that usually takes a back seat in the news, “in this environment, the absence of bad news is good news”, Adam Sarhan summed up, “that is why the market is going up a lot.”

Operators also welcomed the announcement of the acquisition of remote (cloud) computing specialist VMware (+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.

Graphics card maker Nvidia (+5.16% to $178.51) benefited from better-than-expected results from analysts, although its forecasts were disappointed.

Twitter was also sought after (+6.35% to $39.52), following Wednesday’s announcement that Elon Musk had raised the direct contribution fee he was putting on the table to buy the social network to $33.5 billion. compared to the 21 originally planned.

The businessman thus renounced the entire loan of 12,500 million dollars guaranteed with Tesla shares that he was initially going to subscribe, which meant a rebound in the title of the electric vehicle manufacturer (+7.43% to 707.73 dollars).

Chinese e-commerce giant Alibaba 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, 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 club. English football.

The Toronto Stock Exchange closes higher with a 5me consecutive session

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.

The Toronto Stock Exchange’s S&P/TSX Composite Index advanced 148.43 points to close the day at 20,532.18 points.

In the forex market, the Canadian dollar traded at an average rate of 78.17 US cents, down from 77.90 US cents the previous day.

the Canadian press

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