Stock market: Wall Street closes strongly, buying current after a catastrophic month

MARKET REVIEW. The New York Stock Exchange closed sharply higher, buoyed by hedging, bargain hunting and some semblance of early-quarter momentum after a disastrous September.

The Toronto Stock Exchange closed the first session of the fourth quarter with a gain of more than 400 points, supported by the energy sector and the fact that the price of crude oil exceeded 80 dollars per barrel.

The Toronto Stock Exchange lost more than 170 points

To (re)consult market news

Stock indices at closing

In Toronto, the S&P/TSX it rose 436.97 points (+2.37%) to 18,881.19 points.

In New York, the S&P500 it rose 92.81 points (+2.59%) to 3,678.43 points.

the nasdaq it rose 239.82 points (+2.27%) to 10,815.43 points.

the DOW it rose 765.38 points (+2.66%) to 29,490.89 points.

the loon it rose $0.0108 (+1.4991%) to $0.7341.

the oil it finished US$3.80 (+4.78%) at US$83.29.

L’Prayed it rose $35.80 (+2.14%) to $1,707.80.

the bitcoin it finished US$326.04 (+1.69%) at US$19,578.52.

The context

“There has been no good news to support this rally, just the absence of bad news,” said Regent Atlantic’s Andy Kapyrin. “That was enough to bring the market back into balance.”

All three major Wall Street indices ended Friday at their lowest level for the year.

Adam Sarhan of 50 Park Investments said “everyone who wanted to sell last week sold”, prompting investors who had recently bet lower on Monday to cover by repositioning long.

These speculative traders were joined by investors interested in discounted securities, who went on the hunt for bargains. “And finally, there are the investors sensitive to the big moves that have been incorporated,” according to Sarhan.

For once, it was the giants of the industry and the so-called defensive stocks, theoretically less sensitive to the economic situation, the big winners of the day,Honeywell (HON, +3.64% to US$173.04) a Boeing (BA, +4.10% to $126.05).

In the trading department, Intel (INTC, +4.66% to $26.97), Nike (NKE, +2.74% to $85.40) Y Disney (DIS, +2.97% to $97.13) They poked their noses out the window.

As for several months, stocks and bonds moved together again.

“It’s the beginning of a month, the beginning of a quarter, there are investors who want to go back to the market and change their allocation” of assets, whether it’s in stocks or bonds, Sarhan said.

Yields, which move in the opposite direction of bond prices, fell sharply on Monday. The 10-year US government bond yield thus stood at 3.64%, compared to 3.82% on Friday.

For Mazen Issa, from TD Securities, this drop in bond rates was also linked to the publication of two US macroeconomic indicators considered disappointing.

The ISM index of activity in the manufacturing sector fell to 50.9% in September, against the 52.0% expected, the slowest rate of progress in the economy since May 2020, at the start of the coronavirus pandemic.

As for construction spending in the United States, it fell 0.7% in August from July, significantly less than the 0.2% drop expected by economists.

For the TD Securities analyst, these poor figures maintain hope that the US central bank (Fed) will not further accelerate its monetary tightening.

Falling interest rates and bargain-buying also played a role for tech stocks like Apple (AAPL, +3.08% to $142.45), Microsoft (MSFT, +3.37% to $240.74) Y Alphabet (GOOGL, +3.28% to US$98.64).

For Sarhan, Monday’s rise does not herald a series in a market that remains globally biased lower. “The strongest movements” in a session “occur in bear markets“, or devastated markets, argued the manager.

You’re there has suffered (TSLA, -8.61% to $242.40) after reporting vehicle deliveries above but below expectations in the third quarter on Sunday. The electric car maker also acknowledged that it was experiencing difficulties transporting its vehicles.

The oil sector was buoyed by news reports of a possible substantial production cut by the Organization of the Petroleum Exporting Countries (OPEC) and its OPEC+ allies, who are due to meet on Wednesday.

exxonmobile (XOM, +5.28% to $91.92), Chevron (CVX, +5.61% to $151.73), halliburton (HAL, +7.15% to US$26.38) Y Marathon Oil (MRO, +10.58% to $24.97) They were all at the party.