The New York Stock Exchange closed higher on Monday, adopting an optimistic attitude ahead of a burst of corporate results this week.
The Dow Jones index rose 0.22% to 34,585.35 points, the technology-dominated Nasdaq gained 0.93% to 14,244.95 points. The S&P 500 rose 0.39% to 4,522.79 points. The broader index thus rose above the 4,500 point mark for the second time in more than a year after last Thursday’s surge.
“There hasn’t really been any news of the day to drive this market rally other than investor optimism that the earnings season is going to be positive,” said Peter Cardillo of Spartan Capital, interviewed by AFP.
The analyst recalled that Friday’s first banking results “had exceeded forecasts” for the country’s leading bank in terms of assets JPMorgan (+2.41% at the close on Monday) and Wells Fargo (+2.71%) notably.
“Tuesday we will have Bank of America, Charles Schwab, Morgan Stanley, PNC Bank, Bank of New York. We are really getting into the heart of the matter,” added Mr. Cardillo.
Among them, the two largest banking establishments, Bank of America and Morgan Stanley, ended frankly in the green before their announcements on Tuesday, climbing respectively by 1.00% and +0.69%.
Later in the week, it is the accounts of Goldman Sachs (+0.31%), Tesla (+3.20%), United Airlines (-0.02%) and Netflix (+1.84%) in particular which are waiting.
“I think the market is happy with a soft landing scenario” for the US economy, after the good news last week which showed a slowdown in inflation, estimated for his part Ed Yardeni of Yardeni Research on the CNBC business channel.
On Monday, the indices had started the session indecisively with the publication of a lackluster manufacturing activity index for the New York region (Empire State). Business continued to grow very slightly in July, better than expected, but down sharply from the rate of June.
“The weakening of investment projects is disappointing but not necessarily decisive,” commented Kieran Clancy, economist at Pantheon Macroeconomics.
Among the important indicators that will be watched by investors this week, retail sales in June in the United States should give Tuesday (at 12:30 GMT) a crucial indication of the health of the consumer, which is the engine of American growth.
Analysts are betting on retail sales up 0.5% in June from +0.3% in May, according to Briefing.com.
For Peter Cardillo, “if retail sales come out weaker than expected, I think the chances will increase that the Federal Reserve (Fed) will pass its turn for a rate hike in July and revisit the situation in September”.
But for now market participants remain near-unanimous (97%, according to CME Group futures products calculations) in believing that the Fed will indeed raise rates by a quarter of a percentage point on the 25 and July 26. This should bring overnight rates to a range of 5.25% to 5.50%.
In the bond market, yields on ten-year Treasury bills eased a little to 3.80% from 3.83%.
Elsewhere, Ford fell almost 6% after announcing a steep price cut on its F-150 Lightning electric pickup as Tesla said it had finished production of its own pickup. electric.
General Motors dropped 3.12% and the electrical manufacturer Rivian -3.34%.
The entertainment giant Disney suffered (-3.45%) from the actors’ strike which left its red carpet deserted on Sunday for the presentation of its new film “The Haunted Mansion”.
2023-07-18 01:17:33
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