2023-07-11 21:39:39
(Photo: 123RF)
MARKET REVIEW. The New York Stock Exchange ended higher on Tuesday anticipating with optimism a favorable evolution of inflation in the United States, whose consumer price index CPI will be published on Wednesday for the month of June.
The strength of the energy sector allowed the Toronto Stock Exchange to close higher on Tuesday, while the major US indices also rose.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX rose 56.11 points (+0.28%) to 19,878.56 points.
In New York, the S&P 500 rose 29.73 points (+0.67%) to 4,439.26 points.
The Nasdaq ended up 75.22 points (+0.55%) at 13,760.70 points.
The DOW rose by 317.02 points (+0.93%) to 34,261.42 points.
The loon rose US$0.0025 (+0.3317%) to US$0.7557.
The oil rose US$1.90 (+2.60%) to US$74.89.
L’or fetched US$6.50 (+0.34%) to US$1,937.50.
The bitcoin fell -US$375.57 (-1.21%) to US$30,602.73.
Context
“There was a bit of excitement in the market today, I don’t know if that’s coming from the deal at NATO,” as Sweden entered the defense organization, “or good if investors position themselves for a favorable inflation figure on Wednesday,” commented Jack Ablin of Cresset Capital.
On Wednesday, the US government will publish the CPI consumer price index for June which is expected at +0.3% over the month and +3.1% over twelve months against 4% in May, a substantial slowdown.
“Core inflation” excluding food and energy prices, should “also mark time at 5% against 5.3%, a favorable direction,” said Jack Ablin.
“Everyone seems to be waiting for a favorable inflation report and that’s supporting the market,” he added.
Investors will also watch on Wednesday for the publication of the beige book, the last economic report concocted by the regional branches of the American central bank (Fed) before the next monetary meeting on July 25 and 26.
And on Thursday, the producer price index for June will be published.
The markets remain convinced that the Federal Reserve will indeed raise its key rate by a quarter of a point on July 26, despite its pause during the previous meeting, noted Art Hogan of B. Riley Wealth Management.
They are, however, more undecided on what the Fed will do next. “There is a 92.4% chance of a rate hike in July and 22% for another in September,” according to calculations on futures products, the analyst pointed out.
On the bond market, yields on Treasury bills were stable around 8:10 p.m. GMT at 3.98% for those at ten years against 3.99% the day before. As for the dollar, it slipped to a two-month low against the major currencies.
In the second half of the week, the results season begins with the banks JPMorgan (JPM, +2,27), Citigroup (C, +0,86), Wells Fargo (WFC, +0.42), the investment fund BlackRock (BLK, +14.03) but also Pepsico (PEP, -0.32) and the airline Delta (DAL, +0,41).
On the value side, Microsoft (MSFT) gained 0.19%, regaining ground lost at the start of the session, after the Redmond group won a round against the American competition authority FTC which had rejected its plan to take over the gaming group. Activision video.
A federal judge in California has dismissed the FTC’s request for an immediate suspension of the acquisition of Activision by Microsoft, inflicting a first setback on the US government in this case.
The decision relates only to the emergency proceeding brought by the FTC and not to the merits of the case, which will be decided at a later date.
Activision Blizzard (ATVI), which publishes the successes “Call of Duty” and “Candy Crush” saw its action soar by 10.02% to 90.99 US dollars (US).
The specialist in dematerialized customer relationship management Salesforce (CRM) jumped 3.94% after the company announced price increases starting in August.
The leader in online distribution Amazon (AMZN, +1.30% to US$128.78) benefited from the launch of Amazon Prime’s two-day annual sale.
The real estate website Zillow (Z) jumped 9.12% to US$52.28 after favorable analyst advice.
A good analyst rating also pushed up the stock of the industrial conglomerate 3M (MMM, +4.87%) which had lost momentum in early July in the wake of fines imposed for pollution with “eternal pollutants”.
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