Market Review: NYSE Ends Positive Week Before Fed Meeting and Inflation Indicator

2023-06-09 21:22:30

(Photo: Catherine Charron)

MARKET REVIEW. The New York Stock Exchange ended higher on Friday, ending a positive week marked by the crossing of an important technical threshold, ahead of a highly anticipated inflation indicator and a meeting of the American central bank (Fed).

The Toronto Stock Exchange closed lower on Friday, dragged down by weakness in its industrials sector, while major US stock indexes posted gains.

To (re)consult market news

Stock market indices at closing

In Toronto, the S&P/TSX lost 50.64 points (-0.25%) to 19,892.06 points.

In New York, the S&P 500 rose 4.93 points (+0.11%) to 4,298.86 points.

The Nasdaq rose 20.62 points (+0.16%) to 13,259.14 points.

The DOW gained 43.17 points (+0.13%) to 33,876.78 points.

The loon rose by 0.0007 (+0.0895%) to US$0.7490

The oil fell US$0.94 (-1.32%) to US$70.35

L’or fell US$2.90 (-0.15%) to US$1,975.70

The bitcoin fell by US$155.06 (-0.58%) to US$26,449.19.

The context

The Dow Jones gained 0.13%, the Nasdaq index gained 0.16% and the S&P 500 gained 0.12%.

On Thursday, the S&P 500 managed to close up 20% from its October 12 low.

On Friday, the most representative index of the New York Stock Exchange failed, however, to finish above 4,300 points, a new important technical threshold.

“This week, there were very few economic indicators and the market had to think for itself, for once, which was positive”, commented Quincy Krosby, of LPL Financial.

For Maris Ogg, of Tower Bridge Advisors, it emerged that “the worst is behind us”, according to the analyst, that is to say almost all of the monetary tightening and the banking crisis, even if investors are s are still expecting a deterioration in the economy.

“We also ended the debt crisis (…) which, in my opinion, weighed more on the market than people realized”, which pushed stocks in the back, noted Chris Low, of FHNFinancial.

Another significant fact of the week, the movement was not dictated by a handful of giant technology capitalizations as since the beginning of the year.

In June, the S&P 500 index at equal valuations, which gives the same weight to each company, gained 4%, while posting a decline of 1.4% since the beginning of the year.

“It’s really encouraging to see a momentum that encompasses a bigger chunk of the market, because one of the things that really worried me so far was how concentrated the upside movement was,” says Chris Low.

Another piece of evidence is the fact that equities withstood a sharp rise in bond yields, which followed Wednesday’s surprise tightening by the central bank of Canada (BoC).

The price of bonds thus fell when that of equities rose, a strong correlation historically, but which had tended to break up in recent years.

The yield on 2-year US government bonds, more volatile than its 10-year equivalent, stood at 4.60%, against 4.51% the day before closing.

Operators expect a monetary status quo from the Fed next week, but anticipate a final rate hike in July.

This rally will be preceded by the publication on Monday of the CPI inflation index for May, which will provide information on the evolution of prices.

Is popular, Netflix (NFLX) advanced (+2.60%) after research firm Antenna reported a doubling of subscriptions in the United States in the week after password sharing restrictions were put in place.

Tesla (TSLA) continued to accelerate (+4.06%), the day after the announcement that the manufacturer was going to open its network of charging stations in General Motors (GM +1,06%) from the start of 2024. GM also plans to integrate the charging standard used by Tesla into its models in 2025.

The news penalized, on the other hand, the course of ChargePoint (CHPT,-13,22%)operator of the first independent charger network in the United States.

Target (TGT, -1,10%) suffered from a lowering of recommendation from Citigroup analysts, who are worried about a possible slowdown in sales of the supermarket chain, in which the share of non-essential items (mainly excluding food) is higher than in its competitors .

The semiconductor manufacturer AMD a bondi (AMD, +3,20%)while the Santa Clara group is due to present its innovations in artificial intelligence and data center management on Tuesday.

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