Stock market: indices raise their heads at the very end of the session

(Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange ended in extremis on a positive note Thursday after two days of losses, thanks to the hopes raised by a resumption of negotiations on a fiscal stimulus plan in the United States.

The clues

In Toronto, the S&P/TSX ends the day with a gain of 19 points, or 0.12%, to 16,909 points.

In New York, the S&P 500 climbed 14 points, or 0.39%, to 3,581 points.

The index saw the Dow Jones rose 44 points, or 0.15%, to 29,483 points.

The Nasdaq, strongly influenced by techno, appreciated 103 points, or 0.87%, to 11,904 points.

The context

At about an hour from the close, the Dow Jones, which had been trading in negative territory throughout the session, picked up steam when it was learned that the US Congress had resumed negotiations to try to find a compromise on a new plan. economic aid.

This resumption of talks comes as the surge in COVID-19 cases is accompanied by new restrictions including school closures in New York.

“It would be an important event, even if it is already a little integrated in the course, if we start to talk about stimulus again”, underlined Karl Haeling of LBBW, noting however that the market had “not jumped” to this information.

According to him, “it seems that the market needs to calm down a bit after the buying frenzy that started just before the election”. Wall Street broke records earlier this week, optimistic about the coming of vaccines.

New aid is considered vital by most economists, in the midst of a fuzzy transition period between Donald Trump and Democrat Joe Biden. The White House has now given Congress free rein.

The president of the Central Bank (Fed) of Dallas Rob Kaplan also warned that with the resurgence of the virus, the economic outlook was “down”, even referring to “negative growth, over one quarter or even two”.

Mixed economic indicators had started Wall Street in the red. Unemployment registrations began to rise sharply last week.

Some 742,000 people registered as unemployed between 8 and 14 November against 711,000 the week before.

Moreover, in the highly industrial region of Philadelphia, manufacturing activity slowed down even if it remains positive.

The Nasdaq and the tech industry have taken the lead. Tesla finished up 2.60%, nearing $ 500 for the title at the close and hitting an all-time high during the session. Electric vehicles have been on the rise with the announcement by British Prime Minister Boris Johnson of a ban on gasoline and diesel cars in the UK as early as 2030.

The American chain of department stores Macy’s had a roller-coaster day, ending up 2.11%, after reporting a smaller than expected quarterly loss.

Despite the rise in equities, Treasury bonds, a safe haven, continued to be in demand, dragging their yield down. The rate on 10-year US Treasuries fell 3.38% to 0.8407% from 0.8701% the day before.

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