2023-08-30 18:23:41
(Photo: Getty Images)
MARKET REVIEW. The strength of the energy and information technology sectors allowed the Toronto Stock Exchange to advance late Wednesday morning, while the major indices also advanced.
The New York Stock Exchange opened modestly in the green on Wednesday, trying to continue the momentum of three positive sessions, after economic data showed a slowdown in job creation in the private sector.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX gained 88.65 points (+0.44%) to 20,377.95 points.
In New York, the S&P 500 rose by 21.78 points (+0.48%) to 4519.41 points.
The Nasdaq advanced by 103.77 points (+0.74%) to 14,048.58 points.
The DOW gained 73.38 points (+0.21%) to 34,926.05 points.
The loon rose by US$0.0015 (+0.2035%) to US$0.7392.
The oil fell US$0.04 (-0.0493%) to US$81.12.
L’or earned US$6.30 (+0.3206%) to US$1,971.40.
The bitcoin lost US$744.90 (-2.67%) to US$27,156.31.
Context
“The market has had a nice run over the past three sessions with gains across the board,” noted Briefing.com’s Patrick O’Hare, noting however that the lack of trading volume in the week leading up to the long Labor Day weekend accentuates the movement of the indices.
Ahead of Wednesday’s market open, the ADP/Stanford Lab survey of private sector employment in the United States in August showed a sharp deceleration in job creation to 177,000, half of July’s level, and below expectations.
“After two years of exceptionally high creations linked to the recovery, we are moving towards more sustainable growth in wages and employment,” said Nela Richardson, chief economist at ADP.
These figures are released ahead of the official jobs report on Friday, but are rarely a reliable projection of official figures, analysts point out.
However, according to Patrick O’Hare, the key to the ADP report “is the slowdown in the increase in compensation to +5.9% year on year, the lowest pace since October 2021”.
A second estimate of US GDP for the 2nd quarter was also published, showing a slight downward revision with 2.1% growth at an annualized rate instead of 2.4% for the first estimate.
There too, we note a downward estimate of quarterly inflation, with the PCE price index rising by 2.5% instead of 2.6%.
“It fits well with a soft landing scenario. These downward revisions to the price index are something that will continue to persuade markets that the Fed can avoid raising rates again.
The bond market continued to relax, with two-year rates slipping to 4.85% from 4.89% the day before, ten-year rates remaining around 4.11%.
Thursday, the markets will watch for a new inflation figure with, for July, the PCE price index, the US central bank’s favorite barometer for measuring price trends.
On the odds, some tech megacaps were pulling the Nasdaq, like Apple (AAPL, 1,19%), Netflix (NFLX, +0,91%) or Alphabet (GOOG, +0,55%).
Nicholas (NKLA)the electric truck maker which temporarily halted sales of some vehicles after a battery recall, lost 4.6% to US$1.24.
The title of the wholesale chain Costco (COST) evolved without great amplitude (COST, -0,29%) before the publication of its quarterly results after the market close, as well as the action of the giant of customer management software Salesforce (CRM, +0,55%).
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