Market Review: New York Stock Exchange and Financial Analysis - Macro Events, Stock Indices, and Investor Trends

2023-12-11 15:52:14

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MARKET REVIEW. The New York Stock Exchange opened in disorganized order on Monday, caught in a consolidation movement after reaching peaks on Friday, at the start of a week full of macroeconomic events.

To (re)consult market news

Stock market indices at the opening

In Toronto, the S&P/TSX fell by -98.69 points (-0.49%) to 20,232.85 points.

In New York, the S&P 500 collected +2.21 points (+0.05%) to 4,606.58 points.

The Nasdaq fell by -28.65 points (-0.20%) to 14,375.33 points.

The DOW showed an increase of +34.41 points (+0.09%) to 36,282.28 points.

The loon increased by +US$0.0009 (+0.1194%) to US$0.7373.

The oil fell -US$0.02 (-0.03%) to US$71.21.

L’or fell -US$10.70 (-0.53%) to US$2,003.80.

The bitcoin fell by -US$1,998.56 (-4.56%) to US$41,866.31.

The context

“The market has grown so much that it needs to consolidate,” commented LPL Financial analyst Quincy Krosby. “Valuations are high. It would be beneficial for the market to take a break before gaining new momentum at the end of the year.”

“No one is impatient to see the indices decline, which keeps the sellers at bay” for the moment, tempered, in a note, Patrick O’Hare, analyst at Briefing.com.

Most of the star technology stocks on the market, which have driven the New York market since the start of the year, were nevertheless subject to profit taking, notably Amazon (AMZN, -1,87%), Meta (META, -2.52%) et Alphabet (GOOG, -1,68%).

If Monday is devoid of announcements or indicators, investors are preparing for a busy week, with the publication of the CPI price index on Tuesday, the communication from the American central bank (Fed) on Wednesday, or retail sales on Thursday.

“The CPI is going to be very important,” announces Quincy Krosby, because it immediately precedes the Fed’s decision, which will be the last meeting of the year.

Operators are counting on a monetary status quo on Wednesday, but will be more interested in the tone of the declarations of the institution and its president Jerome Powell, as well as the updating of the institution’s forecasts.

They will thus watch for “any indication that the Fed could lower its rates in the first half of 2024,” explains Quincy Krosby.

As it stands, the market is betting on four rate cuts next year, the first in May. But in their latest projections, in September, the members of the monetary policy committee only mentioned, on average, two cuts.

On the bond market, the yield on 10-year US government bonds continued to rebound, at 4.26%, compared to 4.22% at Friday’s close.

Some results publications are also on the agenda, with Oracle, Monday after the stock market, Adobe, Wednesday, and two companies considered to be good indicators of consumption in the United States, the semi-wholesale supermarket chain Costco, Thursday, and the Darden restaurant group (Olive Garden in particular), Friday.

Monday, at the coast, Macy’s flew away (M, +16,56%)after the Wall Street Journal reported on a takeover offer for the department store chain by two investment firms, Arkhouse Management and Brigade Capital Management.

The information benefited Macy’s rivals, particularly Nordstrom (JWN, +4,31%) et Kohl’s (KSS, +4,87%).

Occidental Petroleum (OXY, +0,81%) capitalized on the announcement of the purchase, for 12 billion US dollars (US$G), of the oil and gas group CrownRock, very present in the Permian basin, the largest shale oil reserve in the United States.

The health insurer Swan (CI) jumped (CI, +15,82%), in reaction to information from the Wall Street Journal according to which the Bloomfield (Connecticut) group has given up on the acquisition of its competitor Humana, a transaction which would have united two behemoths with a total capitalization of more than US$135 billion. Cigna also announced a US$10 billion share buyback program.

Nike (NKE, +2.17%) was supported by an increase in recommendation from Citigroup, which anticipates a recovery in the sports equipment manufacturer’s margins and is counting on the Olympic Games to create momentum in 2024.