(Photo: 123RF)
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MARKET REVIEW. The New York Stock Exchange ended up Monday and set new records on three major indices, tempted by the prospect of exceptional corporate results.
The Toronto Stock Exchange started the week down as the drop in the price of a barrel of oil weighed on the energy sector.
The clues
In Toronto, the S&P/TSX dropped 24 points, or 0.12% at the close. The composite index accumulated 20,233 points.
In New York, the S&P 500 scored 15 points, or 0.35%, to 4,384 points.
The Dow Jones gained 126 points, or 0.36%, to 34,996 points.
The Nasdaq took 31 points, or 0.21%, to 14,733 points.
The Canadian dollar lost 0.11% to US $ 0.8023.
The oil fell US $ 0.46, or 0.62%, to US $ 74.10.
L’or yielded US $ 5.90, or 0.33%, to US $ 1,804.70.
The context
Without significant development on the micro or macroeconomic fronts, the session was “lackluster”, according to analysts at Briefing.com. The volumes traded were thus the lowest since July 1.
On its impetus, which has seen the Dow Jones advance by more than 13% since early March, Wall Street has nevertheless continued its march forward.
The market expects to see the second best season of results in a quarter of a century, behind the fourth quarter of 2009, explained Sam Stovall, chief strategy officer at CFRA.
The quarterly parade opens Tuesday with JPMorgan Chase and Goldman Sachs banks, accompanied by the agri-food group Pepsico.
The low interest rate environment, unfavorable to banks because it squeezes their margins on loans, could affect the results of these financial institutions, “but most of them make their money on negotiation”, underlines Sam Stovall. “With the increase in volatility, it will probably benefit them. “
According to the consensus established by S&P Capital IQ, earnings per share of companies in the S&P 500 are expected, on average, to increase by more than 60% year on year, with almost all sectors being announced at the party.
In terms of values, despite the successful flight of its VSS Unity vessel, with founder Richard Branson on board, Virgin Galactic has dropped 17.30% to $ 40.69.
The market was less sensitive to the beauty of the footage of the theft than to the filing of a regulatory document, in which the company founded in 2004 announced plans to issue up to $ 500 million in additional shares. At the current price, this would represent more than 5% of the capital, which would significantly dilute the existing shareholders.
After rebounding on Friday (+ 7.31%), the “Chinese Uber” Didi Chuxing, subject to investigation and restrictions imposed by Chinese regulatory authorities, resumed its descent into hell and dropped 7.23% to 11.16 dollars.
On Monday, the transport vehicle platform with driver (VTC) warned in a statement that the suspension of 25 mobile applications of the group at the request of the Chinese authorities “could have a negative effect on its revenues in China”.
On the first day of a lawsuit against his boss and founder Elon Musk, the title Tesla was decidedly on the upside and gained 4.35% to $ 685.51.
The multi-billionaire is being sued by investors who believe he failed in his homework when he decided that Tesla would buy SolarCity in 2016 for $ 2.6 billion.
The American semiconductor maker Broadcom was noticed, the Wall Street Journal announcing that it was in talks to buy out the data management and analysis specialist SAS Institute (which is not listed), for a sum ranging from 15 to 20 billion euros. dollars. Broadcom ended up 1.16% to 485.75 dollars.
The entertainment giant Walt disney has also gained ground (+ 4.15% to 184.38 dollars), after a weekend which allowed “Black Widow”, the new blockbuster of its subsidiary Marvel, to achieve the best start in North America since the start of the pandemic.
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