:format(jpg):watermark(cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/EF665FJJCNGHFFHRRMWR57UKMI.png,0,30,0)/cloudfront-eu-central-1.images.arcpublishing.com/ipmgroup/OERTVCFI4VHJHA4TSHDPBW7YQ4.jpg "The New York Stock Exchange hesitant to open, but the market remains well oriented")
The New York Stock Exchange opened in dispersed order on Thursday, but the market remained well driven by corporate results and the moderate speech of the US Federal Reserve (Fed). At around 14:00 GMT, the Dow Jones was down 0.06% at 36,134.58 points. The Nasdaq index, influenced by technology stocks, gained 0.54% to 15,896.47 points and the S&P 500 expanded index gained 0.30% to 4,675.36 points.
All three indices remain on four consecutive records since last Friday. For Art Hogan, of National Securities, the indices benefit from three positive factors, on the one hand the good results of companies, the improvement of the macroeconomic conditions after a slowdown at the end of the summer, and the cautious strategy of the Fed.
The US Federal Reserve announced on Wednesday that it would begin, in November, to reduce its purchases of financial assets initiated at the start of the Covid-19 pandemic to support the economy.
This withdrawal will be gradual and spread out until mid-2022, and the Fed has indicated that it will not rule out modifying this trajectory if the situation warrants it. The president of the institution, Jerome Powell, dismissed the prospect of a rise in short-term interest rates, the general speech being considered more moderate than expected.
After tightening and having crossed 1.60% Wednesday, the rate of US government bonds to ten years fell sharply Thursday, to 1.54%.
“The results continue to offer support” to the market, analysts at Schwab also pointed out, citing Qualcomm, whose turnover and profit both came out significantly higher than expected by analysts.
Energy boost
For Art Hogan, recent macroeconomic indicators show a renewed energy in the US economy, which had stalled since August. The ADP cabinet reported Wednesday job creations far above expectations in October, before the publication, Friday, of the figures of the Department of Labor.
The latter announced Thursday that jobless claims had fallen more than expected between October 24 and 30, to register at a level close to that of early March 2020, before the start of the health crisis.
The vast majority of companies that have published their results, “Washington is getting bigger and going to get more attention”Art Hogan explained, referring to negotiations in Congress over the Biden government’s two massive budget plans. If adopted, they would provide the US economy with a new stimulus.
By the way, Merck took advantage (+ 1.34%) of the marketing authorization in the UK for its anti-Covid tablets, the first oral treatment available in the world.
Its competitor Moderna took the opposite path (-16.16%), weighed down by the downward revision of its forecast for annual sales from its vaccine against the coronavirus. IBM rose slightly (+ 0.58%) while its Kyndryl subsidiary will stand on its own two feet for the first time on the stock market on Thursday.
The IT group had decided to split into two to isolate certain maintenance and consulting activities which correspond, for the most part, to the pre-cloud model (remote computing), less promising than other IBM businesses. The market forgave the video game publisher Take-Two Interactive (+ 4.35%) for doing less well than expected on its turnover and profit, preferring to focus on raising annual targets by l ‘business.
Its competitor Electronic Arts (+ 3.67%), which also published its results Wednesday, also benefited from an increase in its forecasts. The publisher is counting in particular on the upcoming release of its new Battlefield 2042 game to have a good run during the current quarter.
–
