Posted Jul 31, 2023, 4:06 PM
July 31 (Reuters) – The New York Stock Exchange was flat in early trading on Monday but is expected to end the month higher on positive corporate results on hopes of a soft landing for the U.S. economy and a pause in rising interest rates.
A few minutes after opening, the Dow Jones index gained 23.28 points, or 0.07%, to 35,482.57 points and the broader Standard & Poor’s 500 was unchanged at 4,582.14 points.
The Nasdaq Composite fell 0.1%, or 14.785 points, to 14,301.873.
These three major US indices ended in the green last week and are so far posting monthly growth above 3%, as signs of slowing inflation and resilience in economic activity have helped push back the specter of a downturn. a recession and raised hopes of an end to the Fed’s monetary tightening cycle.
“Markets are increasingly convinced that we are nearing the end of the current rate hike cycle and that a soft landing is possible,” said Joshua Warner, market analyst at City Index.
As expected, the Fed on Wednesday announced the raising of the federal funds rate target to its highest level in 16 years.
Chicago Fed Chairman Austan Goolsbee remarked that the US central bank had managed to reduce inflation without causing a recession and that it would monitor data heading into September to judge whether to lower inflation. a further tightening.
In the coming week, investors will watch with interest the release of the ISM manufacturing index for July and a new set of employment data as well as quarterly results from leading companies Apple and Amazon.
Second-quarter earnings for S&P 500 companies are expected to have fallen 6.4% year-on-year, according to Refinitiv data, an improvement from the 7.9% drop estimated a week ago.
“We’re coming off a solid month (..) and we’re at a point where we’ve seen enough to know they’ll be better than expected,” said Art Hogan, strategist at B Riley Wealth.
In values, the chipmaker ON Semiconductor advances by 3.08% after having forecast sales for the third quarter above estimates, thanks in particular to optimism about demand from the automotive sector.
Johnson & Johnson loses 3.33% as US justice rejects the group’s second attempt to resolve tens of thousands of lawsuits over its talc products.
The pharmaceutical company Immunogen lost 12.71% after the publication of its second quarter results.
2023-07-31 14:06:00
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