2023-06-29 20:48:45
(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange ended on a mixed note Thursday, the good performance of the US economy outweighing the prospect of continued monetary tightening, which sent bond yields soaring.
The Toronto Stock Exchange closed with a gain of nearly 100 points on Thursday, fueled by stocks in the energy and financial sectors, while the major US indices closed in mixed order.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX gained 94.32 points (+0.48%) to 19,913.17 points.
In New York, the S&P 500 rose 19.58 points (+0.45%) to 4,396.44 points.
The Nasdaq fell 21.75 points (-0.14%) to 15,108.25 points.
The DOW took 269.76 points (+0.80%) to 34,122.42 points.
The loon rose US$0.0002 (+0.0265%) to US$0.7543.
The oil gained US$0.22 (+0.32%) to US$69.78
L’or fell US$6.00 (-0.31%) to US$1,916.20
The bitcoin advanced US$318.03 (+1.06%) to US$30,417.26.
The context
The session had started in the red after the publication of several indicators stronger than expected.
US gross domestic product (GDP) was revised up to 2.0% for the first quarter year-on-year from 1.3% initially reported, while weekly new jobless claims posted their biggest drop in a year. week since 2021.
This data “reinforces the likelihood that the US central bank (Fed) will remain considerably more aggressive than investors anticipate,” commented Jose Torres of Interactive Brokers.
Traders now assign a probability of more than 40% to the hypothesis of two more rate hikes from the Fed by November.
The bond market was shaken by these indicators. The yield on 2-year US government bonds rose to 4.89%, the highest in nearly four months.
This brutal tension penalized stocks in the technology sector, whose strong growth depends on financing conditions.
Amazon (NVDA, -0,88%), Nvidia (NVDA, -0.72%) et Meta (META, -1.32%) all took a step back.
However, the equity market as a whole ended up recovering.
It owes it in large part to the banking sector, supported by the publication, by the American central bank (Fed), of the results of annual resistance tests (stress tests), better than last year for all of the 23 main American banks. .
Goldman Sachs (GS, +3,01%), Wells Fargo (WFC, +4,51%) or JPMorgan Chase (JPM, +3,49%) have all been sought.
In their wake, regional or medium-sized banks also rose, like the sign of the Californian PacWest (PACW, +3,31%) or Texas Comerica (CMA, +1,76%).
“It’s encouraging to see that even with (the jump in rates), the market is not retreating,” observed Tom Cahill of Ventura Wealth Management, for whom “investors are starting to get used to the idea that a soft landing of the economy is possible.”
In addition to the banks, certain values neglected in recent weeks have paraded, such as Caterpillar (CAT, +0,98%), Boeing (BA, +0.53%) or Dow (DOW, +0,53%).
“We have a small rotation of growth stocks towards the industrial or banking sectors and others whose valuations are reasonable,” said Tom Cahill.
The Space Tourism Society Virgin Galactic (SPCE) was subject to profit taking (SPCE, -10.76%) after its first successful commercial flight on Thursday, with the Italian Air Force as its client, a decisive step for the group founded nearly twenty years ago.
The ghost BlackBerry (BB) advanced (BB, +6,99%)after having doubled its revenues over one year thanks to a strategic repositioning which moved the group from smartphones to cybersecurity software in particular.
The electric car sector remained well oriented, after the filing for bankruptcy of the American manufacturer Lordstown on Tuesday, which benefits its competitors, whether Tesla (TSLA, +0,49%), Rivian (RIVN, +9,36%) or Lucid (LCID, +7.17%).
United Airlines (UAL) made a forced landing (UAL, -4,58%)forced by the cancellation of hundreds of flights for several days, which the airline attributed to staffing problems and a lack of air traffic controllers.
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