(Photo: 123RF)
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MARKET REVIEW. The New York Stock Exchange fell for the second session in a row on Tuesday, weighed down by the progression of cases of coronavirus contamination around the world and falling back after recent records.
The Toronto Stock Exchange lost more than 100 points, dragged down by the energy and industrial sectors.
The clues
In Toronto, the index S&P/TSX lost 163 points, or 0.85%, to 19,040 points.
In New York, the S&P 500 yielded 28 points, or 0.68%, to 4,134 points.
The Dow Jones fell 256 points, or 0.75%, to 33,821 points.
The Nasdaq dropped 128 points, or 0.92%, to 13,786 points.
The Canadian dollar was down 0.6% to US $ 0.7928.
The oil slipped US $ 0.83, or 1.31%, to US $ 62.60.
L’or took US $ 8.60, or 0.49%, to US $ 1,779.20.
The context
The indices had set new records the week before and despite strong quarterly corporate results, investor sentiment remained gloomy for the second day in a row.
“There is the realization that it will take longer than expected to get rid of COVID-19,” said Maris Ogg, of Tower Bridge Advisors.
“When you look at vaccination rates in Europe, it’s not very good. In Canada, it’s awful and in developing countries, even worse, ”noted the analyst.
In the United States, even though vaccine injections remain at the rate of nearly 3 million per day, cases of new daily infections still well exceed 60,000.
Despite the very good results so far of companies – whose first announcements started last week -, “these represent less of a surprise than in the 4th quarter and they have already been taken into account” in the value of the securities.
The high valuation of stocks also encourages profit taking. “When you look at the list of stocks you want to buy and see how high they are, it’s difficult. We understand why some are making their profits at this level, ”added Ms. Ogg.
Among the actions of the day, those related to travel lost ground, ranging from Boeing (-4.13%), despite announcements of orders, at United Airlines (-8.53%) which suffered its fifth quarterly deficit in a row.
The titles of tobacco companies have been heckled by press reports that the US government is now considering requiring low levels of nicotine in cigarettes to prevent tobacco addiction.
The action ofAltria lost 3.85%, after dropping more than double in the session, but Philip Morris International, which markets American brands internationally, remained in the green at + 2.54%.
On the London Stock Exchange, British American Tobacco (BAT) dropped 7.66% at the close at 2,690.80 pence. Imperial Brands also lost 7.31% to 1,465.50 pence.
The war in European football where a handful of the richest clubs intended to form a private “Super League”, breaking with the UEFA Champions League, continued to make waves even in New York.
While the project falters in the face of outcry and threats from football authorities, several of the mutinous clubs already seem to doubt the idea of seceding, according to the press, and among them Manchester United. The New York-listed club saw its action lose what it had won the day before (-6.03%).
Manchester City officially announced Tuesday evening that he was withdrawing from the project.
In electronic exchanges after the close, the streaming giant Netflix lost more than 11% after announcing a strong profit but investors focused on slowing the growth of its subscribers.
Yields on 10-year Treasuries fell sharply to 1.55% from 1.60% at the close the previous day.
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