(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange ended lower on Tuesday, as the market was reassured by the stabilization of the banking system, but lacked conviction and indicators capable of guiding the trend.
Strength in the energy sector helped the Toronto Stock Exchange’s flagship index close higher on Tuesday, while major US indices ended the session down slightly.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX gained 32.79 points (+0.17%) to 19,657.53 points.
In New York, the S&P 500 closed down 6.26 points (-0.16%) at 3,971.27 points.
The Nasdaq fell 52.76 points (-0.45%) to 11,716.08 points.
The DOW fell 37.83 points (-0.12%) to 32,394.25 points.
The loon ended up US$0.0034 (+0.4707%) at US$0.7355.
The oil ended up US$0.77 (+1.06%) at US$73.58.
L’or rose US$21.50 (+1.10%) to US$1,975.30.
The bitcoin advanced US$123.21 (+0.45%) to US$27,259.83.
The context
The session had started in disorganized order, but the indices quickly all went into the red.
“There seems to be no momentum to buy or sell outright,” commented Steve Sosnick of Interactive Brokers.
“It’s a good thing that there is no more news” after two very turbulent weeks on the bank front, “but in the absence of development” or of any major macroeconomic indicator, “there there are not many important elements on which to rely, ”continues the analyst.
In this context, explains Steve Sosnick, the market can be guided by technical data, but the indices are currently located halfway between two major thresholds (the average of the last 50 trading days and that of the last 200 sessions), without find support on one or the other.
In the end, Wall Street was therefore forced to operate within tight margins.
These low spreads are also due to the caution of investors, still marked by the financial earthquake of recent weeks.
“The problem with a financial crisis is that no one is going to come and tell you it’s over,” says Steve Sosnick. Wall Street struggles to find direction “because there are still a lot of unknowns.”
Even the American regional banks, superstars of the rating since the beginning of March, had a relatively calm day, like First Citizens (FCNCA) (+ 2.29%), in the spotlight on Monday after the announcement of its resumption of Silicon Valley Bank (SIVB)or Californian First Republic (FRC) (-2.32%), often seen as a possible weak link.
Sought after in recent weeks, technology stocks have again been the subject, like on Monday, of profit taking, mainly Alphabet (GOOGL) (-1,65%) et When (WHEN) (-1,06%).
Under very strong pressure from the banking crisis, bond rates continued to rise. The yield on 10-year US government bonds stood at 3.56%, against 3.52% on Monday at the close.
On the side, the clothing group PVH (PVH) soared (+20.02%) after publishing a net profit significantly above expectations for the last quarter of 2022, thanks in particular to the good performance of the Calvin Klein brand.
The specialist in installment payment on the internet Affirm (AFRM) (-7.34%) had a hard time with the arrival on this market of the giant Apple, which launched its Apple Pay Later service on Tuesday.
The pharmaceutical giant Walgreens (WBA) grew (+2.67%) thanks to higher-than-expected quarterly revenue, although its net profit came in below expectations, due to higher costs.
The vehicle reservation platform with driver (VTC) Lift (LIFT) unscrewed (-7.60%) after the announcement of the arrival of a new general manager, David Risher, formerly of Amazon and Microsoft. He will succeed co-founder Logan Green, who will become chairman of the board.
After clearly benefiting from the setbacks of TikTok, threatened with a ban in the United States, Snap (SNAP) (-5.79%), parent company of the social network Snapchat, and Pinterest (-4.38%) suffered profit taking.
Investors have welcomed the prospect of a spin-off from the Chinese e-commerce giant Alibaba (BAB) (+14.26%), listed in New York, which will be divided into six separate entities, five of which could be listed separately.
The food company McCormick (MKC)which controls the Ducros brand in particular, jumped (+ 9.61%) after reporting results slightly above market projections and confirming its objectives for its entire staggered 2023 financial year (from December to November).