Daily Stock Market Updates: Canada, US, and Global Market Review

2023-12-13 16:57:00

(Photo: 123RF)

MARKET REVIEW. The strength of the energy sector helped Canada’s main stock market improve late Wednesday morning, while the American stock markets also gained ground.

The New York Stock Exchange was trading in disarray on Wednesday, oscillating around equilibrium while awaiting the last monetary decision of the year for the Federal Reserve (Fed).

To (re)consult market news

Stock market indices at noon

In Toronto, the S&P/TSX showed an increase of +50.48 points (+0.25%) to 20,284.32 points.

In New York, the S&P 500 gained +4.80 points (+0.10%) to 4,648.50 points.

The Nasdaq advanced +9.91 points (+0.07%) to 14,543.31 points.

The DOW rose by +10.66 points (+0.03%) to 36,588.60 points.

The loon rose by +US$0.0014 (+0.186 5%) to US$0.7372.

The oil increased by +US$0.94 (+1.37%) to US$69.55.

L’or rose by +US$4.70 (+0.24%) to US$1,997.90.

The bitcoin showed an increase of +US$684.70 (+1.66%) to US$41,901.05.

In Toronto, the S&P/TSX posted a decline of -9.19 points (-0.05%) to 19,566.40 points.

In New York, the S&P 500 advanced +7.34 points (+0.17%) to 4,385.72 points.

The Nasdaq rose +121.08 points (+0.90%) to 13,639.86 points.

The DOW rose by +51.25 points (+0.15%) to 34,203.85 points.

The loonie dropped -US$0.0014 (-0.1929%) to US$0.7252.

Oil fell -US$0.64 (-0.83%) to US$76.73.

Gold was down -US$3.00 (-0.15%) to US$1,970.50.

Bitcoin rose +US$621.88 (+1.79%) to US$35,419.36.

The context

“The Fed’s Monetary Committee should maintain rates on federal funds as they stand between 5.25% and 5.50%,” recalled Wells Fargo analysts.

The day before, the three New York indices had reached new highs since the start of 2022, on a market which welcomed a price index confirming a deceleration in inflation.

On Wednesday, the release of the producer price index before the market opened further instilled good humor.

Wholesale prices remained stable in November in the United States, according to the PPI index.

The increase in prices was zero over one month in November, after having fallen by 0.4% in October compared to September, while analysts, for their part, expected a slight increase in prices, at 0.1%.

Over one year, growth slows, with a price increase of 0.9% compared to 1.2% last month.

“The data confirms the downward trend in inflation, even if the slowdown in consumer prices is more gradual,” commented Rubeela Farooqi, chief economist for HFE.

The CPI index, which measures inflation on the consumer side, reported on Tuesday a slight drop in November compared to October, to 3.1% over one year compared to 3.2%.

This data confirmed the market’s belief that the Fed is done with rate hikes. “The Federal Reserve should keep its rates stable for a third consecutive meeting,” assures Art Hogan of B. Riley Wealth Management.

According to him, even if the press release will remain cautious and almost unchanged, but the projections of rate developments, the famous “dot plot” tables will indicate whether and to what extent the Fed plans to reduce its rates next year.

The central bank will also publish new economic forecasts which should be revised upwards for growth and downwards for inflation and unemployment, according to analysts.

On the bond market, two-year yields fell to 4.68% compared to 4.73% the day before and ten-year yields stood at 4.16% compared to 4.20%.

On the rise, laboratories Pfizer (PFE) fell by more than 9%. The group has forecast a decline in sales in 2024 due to poor demand for anti-COVID-19 vaccines and drugs.

The software giant’s actions Oracle (ORCL) fell by 1.31% as the company announced lower than expected turnover in the second quarter while its forecasts also proved disappointing.

The toy maker Hasbro (HAS) lost 0.75%. The American group plans to cut around 900 positions within two years, a decision which comes a few months after the announcement of a first cut of 15% of its workforce (1,000 employees).

Hasbro posted a net loss of US$171 million in the third quarter due to a sharp drop in business in its core business of traditional toys and games.

Tesla (TSLA) fell by 0.95%. The electric vehicle manufacturer had to recall some two million cars in the United States for an increased risk of collision linked to “autopilot”, its driver assistance system.