(Photo: Catherine Charron)
MARKET REVIEW. The New York Stock Exchange ended higher on Monday, driven by new indicators that support the hypothesis of a controlled landing for the American economy, which allowed the Dow Jones to record an eleventh positive session in a row.
The strength of the energy sector allowed the Toronto Stock Exchange to close higher on Monday, while the major US indices also posted gains.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX advanced by +34.61 points (+0.17%) to 20,582.12 points.
In New York, the S&P 500 ended up +18.30 points (+0.40%) at 4,554.64 points.
The Nasdaq ended up +26.06 points (+0.19%) at 14,058.87 points.
The DOW increased by +183.55 points (+0.52%) to 35,411.24 points.
The loon closed up +US$0.0034 (+0.4482%) at US$0.7597.
The oil fetched +US$1.87 (+2.43%) to US$78.94.
L’or fell -US$9.90 (-0.50%) to US$1,956.70.
The bitcoin dropped -US$986.52 (-3.27%) to US$29,142.67.
The context
After a first half driven by the Nasdaq and the giant technological capitalizations, it is now the venerable index which sets the tone, thanks to a rebalancing of portfolios and a hunt for bargains.
On Monday, it was the banks, shunned by investors in recent months, who sounded the charge, behind Goldman Sachs (+ 1.98%) and JPMorgan Chase (JPM.NE, +1,97%)followed by Boeing (BA, +1.92%) et Chevron (CVX, +1,97%).
The latter unexpectedly published preliminary results on Sunday, prior to the official publication on Friday. The oil giant of San Ramon (California) anticipates a net profit higher than analysts’ projections.
The Dow’s ride “is pretty incredible,” commented Maris Ogg of Tower Bridge Advisors, especially as “so far the earnings season has really been mixed.” “Valuations are starting to be high, so we will run out of breath” to maintain the momentum of recent weeks, warns the analyst.
For Andy Kapyrin, of Regent Atlantic, the tempo could still benefit from the return of institutional investors, many of whom were still hesitant to return to the equity market.
Ambient optimism was fueled on Monday by the publication of PMI indicators, which showed a significant rebound in manufacturing activity in the United States in July, and a slower than expected slowdown in the services sector.
For José Torres, of Interactive Brokers, the hope of a soft landing of the American economy, the normalization of the job market and inflation explain that the purchasing managers in the industry show a level of confidence more observed since April 2022.
Wall Street is now awaiting, on Tuesday, the results of two major rivals in so-called generative artificial intelligence, Alphabet (GOOG, +1,30%) et Microsoft (MSFT, +0,39%)who both finished in the green on Monday.
“This week is going to be very important for stocks, because a good part of the companies of the S&P 500 publish their results”, reminded Andy Kapyrin.
On the eve of the start of the US central bank’s (Fed) monetary policy meeting, rates were tightening slightly. The yield on 10-year US government bonds stood at 3.87%, against 3.83% on Friday at the close.
Is popular, Mattel (MAT, +1.84%) celebrated the whirlwind debut of the movie “Barbie,” which grossed US$155 million in North America in its first weekend in theaters. Worldwide, revenues have already reached US$337 million, according to the specialist site Box Office Mojo.
The movie theater chain AMCa darling of many retail investors during the pandemic, was catapulted (AMC, +32,95%) by the decision of a Delaware judge, who on Friday invalidated the conversion of certain securities of the group into ordinary shares, which would have diluted the value of the latter.
The pizza giant Domino’s (DPZ) finished up slightly (DPZ, +0.12%), after posting net profit slightly above expectations. The group from Ann Arbor (Michigan) said it was optimistic about the benefits of its new partnership with Uber Eats.
Tesla (TSLA, +3,48%) triumphed over a downgrade from UBS, for which the share price, which has more than doubled since the start of the year, no longer justifies new purchases.
2023-07-24 15:11:00
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