2023-07-17 21:00:00
(Photo: Catherine Charron)
MARKET REVIEW. The New York Stock Exchange closed higher on Monday, adopting an optimistic attitude ahead of a burst of corporate results this week.
Losses in the energy and telecommunications sectors contributed to the decline of the Toronto Stock Exchange’s benchmark index on Monday, while major US market indexes rose.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX retreated 35.28 points (-0.17%) to 20,226.79 points.
In New York, the S&P 500 ended up 17.37 points (+0.39%) at 4,522.79 points.
The Nasdaq closed up 131.25 points (+0.93%) at 14,244.95 points.
The DOW advanced 76.32 points (+0.22%) to 34,585.35 points.
The loon gained US$0.0010 (+0.128 8%) to US$0.7578.
The oil fell US$1.34 (-1.78%) to US$74.08.
L’or fell US$5.80 (-0.30%) to US$1,958.60.
The bitcoin fell US$363.14 (-1.20%) to US$29,922.81.
The context
The New York Stock Exchange closed higher on Monday, adopting an optimistic attitude ahead of a burst of corporate results this week.
“There hasn’t really been any news of the day to drive this market rally other than investor optimism that the earnings season is going to be positive,” said Peter Cardillo of Spartan Capital, interviewed by AFP.
The analyst recalled that Friday’s first banking results “had exceeded forecasts” for the country’s leading bank in terms of assets JPMorgan (JPM, +2.41% at the close on Monday) and Wells Fargo (+2.71 %) notably.
“Tuesday we will have Bank of America, Charles Schwab, Morgan Stanley, PNC Bank, Bank of New York. We really get to the heart of the matter,” added Peter Cardillo.
Among them, the two largest banking establishments, Bank of America and Morgan Stanley, ended frankly in the green before their announcements on Tuesday, climbing respectively by 1.00% and +0.69%.
Later in the week, it is the accounts of Goldman Sachs (+0.31%), Tesla (+3.20%), United Airlines (-0.02%) and Netflix (+1.84%) in particular which are waiting.
“I think the market is happy with a soft landing scenario” for the US economy, after the good news last week which showed a slowdown in inflation, estimated for his part Ed Yardeni of Yardeni Research on the CNBC business channel.
On Monday, the indices had started the session indecisively with the publication of a lackluster manufacturing activity index for the New York region (Empire State). Business continued to grow very slightly in July, better than expected, but down sharply from the rate of June.
“The weakening of investment projects is disappointing, but not necessarily decisive,” commented Kieran Clancy, economist at Pantheon Macroeconomics.
Among the important indicators that will be watched by investors this week, June retail sales in the United States should give a crucial indication on Tuesday (at 12:30 GMT) of the health of the consumer, which is the engine of American growth.
Analysts are betting on retail sales up 0.5% in June from +0.3% in May, according to Briefing.com.
For Peter Cardillo, “if retail sales come out weaker than expected, I think the chances will increase that the Federal Reserve (Fed) passes its turn for a rate hike in July and revisits the situation in September”.
But for now market players remain nearly unanimous (97%, according to calculations by CME Group futures products) that the Fed will indeed raise rates by a quarter of a percentage point on the 25th and July 26. This should bring overnight rates to a range of 5.25% to 5.50%.
In the bond market, yields on ten-year Treasury bills eased a little to 3.80% from 3.83%.
Elsewhere, Ford fell almost 6% after announcing a steep price cut on its F-150 Lightning electric pickup as Tesla said it had finished production of its own pickup. electric.
General Motors dropped 3.12% and the electrical manufacturer Rivian -3.34%.
The entertainment giant Disney suffered (-3.45%) from the actors’ strike which left its red carpet deserted on Sunday for the presentation of its new film “The Haunted Mansion”.
“There hasn’t really been any news of the day to drive this market rally other than investor optimism that the earnings season is going to be positive,” said Peter Cardillo of Spartan Capital, interviewed by AFP.
The analyst recalled that Friday’s first bank results “had exceeded forecasts” for the country’s first bank in terms of assets JPMorgan (JPM, +2.41% at the close on Monday) and Wells Fargo (WFC, +2.71%) in particular.
“Tuesday we will have Bank of America, Charles Schwab, Morgan Stanley, PNC Bank, Bank of New York. We really get to the heart of the matter,” added Peter Cardillo.
Among them, the two most important banking establishments, Bank of America (BAC, +1.00%) and Morgan Stanley (MS, +0.69) ended frankly in the green before their announcements on Tuesday, climbing by 1.00% and +0.69% respectively.
Later in the week, these are the accounts of Goldman Sachs (GS, +0,31%), Tesla (TSLA, +3,20%), United Airlines (UAL, -0.02%) and Netflix (NFLX, +1.84%) in particular which are expected.
“I think the market is happy with a soft landing scenario” for the US economy, after the good news last week which showed a slowdown in inflation, estimated for his part Ed Yardeni of Yardeni Research on the CNBC business channel.
On Monday, the indices had started the session indecisively with the publication of a lackluster manufacturing activity index for the New York region (Empire State). Business continued to grow very slightly in July, better than expected, but down sharply from the rate of June.
“The weakening of investment projects is disappointing, but not necessarily decisive,” commented Kieran Clancy, economist at Pantheon Macroeconomics.
Among the important indicators that will be watched by investors this week, June retail sales in the United States should give a crucial indication on Tuesday (at 12:30 GMT) of the health of the consumer, which is the engine of American growth.
Analysts are betting on retail sales up 0.5% in June from +0.3% in May, according to Briefing.com.
For Peter Cardillo, “if retail sales come out weaker than expected, I think the chances will increase that the Federal Reserve (Fed) passes its turn for a rate hike in July and revisits the situation in September”.
But for now market players remain nearly unanimous (97%, according to calculations by CME Group futures products) that the Fed will indeed raise rates by a quarter of a percentage point on the 25th and July 26. This should bring overnight rates to a range of 5.25% to 5.50%.
In the bond market, yields on ten-year Treasury bills eased a little to 3.80% from 3.83%.
Elsewhere on the coast, Ford (FORD, +1.08%) fell almost 6% after announcing a steep price cut on supply of its F-150 Lightning electric pickup as Tesla said it had finished production of its own electric pickup.
General Motors (GM) dropped 3.12% and the electrical manufacturer Rivian (RIVN, -3.34%).
The entertainment giant Disney suffered (DIS, -3.45%) from the actors’ strike which left his red carpet deserted on Sunday for the presentation of his new film “The Haunted Manor”.
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