Stock market: Wall Street gains confidence and ends up

Stock market: Wall Street gains confidence and ends up

(Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange closed higher on Monday, buoyed by technology, at the start of a busy week for corporate earnings in which investors seem inclined to be more optimistic.

The Toronto Stock Exchange closed with a modest gain.

To (re)consult market news

Stock Indices at Closing

In Toronto, the S&P/TSX it rose 128.37 points (+0.63%) to 20,631.58 points.

In New York, the S&P500 it rose 47.20 points (+1.19%) to 4,019.81 points.

the nasdaq finished 223.98 points (+2.01%) at 11,364.41 points.

the DOWN it rose 254.07 points (+0.76%) to 33,629.56 points.

the loon increased $0.0005 (+0.068%) to $0.7480.

the Petroleum fell US$0.03 (-0.04%) to US$81.61.

L’Prayed rose $4.20 (+0.22%) to $1,932.40.

the bitcoins rose US$384.48 (+1.70%) to US$22,986.52.

The context

“Markets are focused on corporate results and while so far, I think, a bit disappointing, equities are doing well,” said Hugh Johnson of economic consultancy Hugh Johnson Economics, noting the better performance in the equity sectors. technology and optional expenses. .

No less than 11 companies that are members of the Dow Jones Index, or a third of them, will publish their quarterly and often annual results this week.

Starting Tuesday, they are expected to include Johnson and Johnson, 3M, General Electric and Microsoft. On Wednesday, investors will be watching Boeing and Tesla.

But, according to Mr. Johnson, it is above all the attitude to come from the US central bank (Federal Reserve or Fed) that motivated the market’s mood. Investors “are leaning toward the idea that the Fed will moderate interest rate hikes, which means better economic times, better corporate results and better stock prices,” he said.

The Fed, which will meet its Monetary Committee next week, is headed, according to several of its members, towards a lower rate hike of a quarter of a percentage point, compared to the half point in December.

“The big expectation now for the Federal Reserve is to raise rates by just a quarter of a percentage point in February, but also in March,” Johnson said.

“Also, based on developments in federal funds-based futures products, investors are starting to think that the Fed is going to consider a rate cut in the last quarter of 2023,” he said.

According to him, the market is leaning “slightly towards optimism and it shows in the behavior of the shares.”

On the value side, Sales force (CRM, +3.09% to $155.87), following news of a sharp increase in the stake in the IT group of activist investment fund Elliott Management.

Elliott now has a “multi-billion dollar” stake in the software group’s capital, a source close to the company said, which would represent a significant investment compared to his stake so far.

Spotify (POINT)The world’s number one audio platform, a Wall Street-listed Swedish group, gained 2.08% to $99.95 after announcing the loss of 600 jobs, or 6% of its workforce, the latest Episode in a series of major layoffs at Internet giants to cut costs.

The title of the online furniture sales site. Fair Path (W) soared 26.86% to US$59.36 after its decision to cut costs and staff led to a favorable rating from banking analysts.

The group, prosperous in the United States during the pandemic, announced Friday that it was shedding 10% of its workforce, or 1,750 jobs. The stock had already gained 20% following this announcement.

Investors reacted modestly to the announcement of the expansion of a partnership between Microsoft and artificial intelligence specialist OpenAI, creator of the ChatGPT chatbot, with an investment of “several billion dollars”. The action Microsoft (MSFT) it advanced 0.98% to US$242.58.

Tesla (TSLA) It gained 7.74% to $143.75, pending its results on Wednesday and as its boss, Elon Musk, returned to the San Francisco bench on Monday in the trial in which investors accuse him of fraud for having tweeted more than four years ago that he intended to take the automaker out of the stock market.

The semiconductor manufacturer AMD (AMD) it jumped nearly 9.22% to $76.53 on the back of a strong rating from banking analysts.

In the bond market, yields on 10-year Treasury bills extended slightly to 3.52% from 3.47% on Friday.

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