Posted Jul 24, 2023, 10:22 PM
par Carolina Mandl et Bansari Mayur Kamdar
July 24 (Reuters) – The New York Stock Exchange ended higher on Monday as investors bet on sectors other than technology ahead of a flurry of quarterly results, including those from tech giants, and a Federal Reserve (Fed) monetary policy meeting this week.
The Dow Jones Industrial Average gained 0.52%, or 183.55 points, to 35,411.24 points.
The broader S&P-500 gained 18.30 points, or 0.40%, to 4,554.64 points.
The Nasdaq Composite advanced for its part by 26.06 points (0.19%) to 14,058.87 points.
The Dow Jones ended in the green for the eleventh consecutive session, a series not seen since February 2017, in the wake of Chevron in particular, which reported over the weekend preliminary results that exceeded expectations for the quarter.
While all eyes will be on the results of Microsoft, Alphabet and Meta Platforms this week, the Nasdaq has rebounded 41% since the start of the year, in the wake of gains recorded by high-growth stocks with the expected end of the Fed’s monetary tightening cycle.
Investors appear to have shrugged off a survey showing that US business activity slowed to a five-month low in July, weighed down by faltering growth in the services sector.
“There is growing certainty of a soft landing for the economy and a possibly more dovish Fed,” said Carol Schleif, chief investment officer of BMO Family Office.
The US central bank, which paused in June, is expected to announce a 25 basis point interest rate hike after its two-day meeting on Wednesday.
Economists polled by Reuters overwhelmingly expect the hike to be the last of the Fed’s campaign as economic data confirmed a slowdown in inflation.
As for the quarterly results of S&P-500 companies, a decline of 7.9% is expected, according to Refinitiv data released on Friday.
Nine of the eleven main sectors of the S&P-500 ended the session in the green, the first being energy.
On the value side, among the movements to note, the toy manufacturer Mattel rose 1.8% while the feature film “Barbie” established the best start of the year in American cinemas.
AMC Entertainment jumped 32.9% after a judge denied a revised motion for a stock conversion plan amid concerns over its impact on shareholders.
(French version Jean Terzian)
2023-07-24 20:22:00
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