2023-07-28 20:04:19
The New York Stock Exchange ended up on Friday, spurred by new signs of deceleration in inflation and corporate results deemed generally satisfactory.
The Dow Jones gained 0.50%, the Nasdaq index gained 1.90% and the broader S&P 500 index advanced 0.99%.
Inflation slowed further in June in the United States, to 3.0% over one year in June, according to the PCE index, favored by the American central bank (Fed).
Excluding food and energy, inflation still reached 4.1%, but it came out well below the 4.6% recorded in May, but also slightly below the 4.2% expected by economists.
After the release of these numbers, “we don’t see any additional Fed rate hikes by the end of the year, but central bankers won’t hesitate to turn the screw around again if the coming data surprised on the upside,” said Oren Klachkin of Oxford Economics in a note.
Taking note, bond rates eased. The yield on 10-year US government bonds fell to 3.95%, against 3.99% the day before closing.
“All week, the information we have received suggests an ideal scenario for the economy”, that of a gradual downgrade, without braking, summarized Angelo Kourkafas, of Edward Jones.
“Inflation is slowing, consumers are still spending, and corporate results have been decent,” he said, “the combination of which is good for the market.”
The consumer confidence index jumped to 71.6 points in July, from 64.4 points the previous month, according to the University of Michigan survey, released on Friday.
After having taken a break in recent weeks, the big fish of the Nasdaq once again took control on Friday, in particular Meta (+4.42%), Tesla (+4.42%) or Microsoft (+2.31%) .
Among the values of the new economy, the New York place also celebrated the specialist in data analysis Palantir (+ 10.28%), one of the jewels of artificial intelligence, after a favorable note from the Wedbush Securities analysts.
As for the Dow Jones, it was pushed in the back by the hygiene and cleaning products giant Procter & Gamble (+2.83%), whose results shattered expectations in the fourth quarter of its staggered financial year, completed at the end of June, mainly thanks to further price increases.
The Cincinnati (Ohio) company even expects, for its 2024 financial year (started in July), higher growth (from 3 to 4%) than that of the previous one (2%).
Another driver of the flagship index of Wall Street, Intel (+6.60%), whose return to profits after two quarters in the red surprised analysts, who were expecting another loss in the second quarter. The Santa Clara (California) group benefited from a slight firming up in demand for computers and servers for data storage centers.
The Dow Jones, on the other hand, could not count on the oil companies Exxon Mobil (-1.80%) and Chevron (-0.49%) which suffered from sharply declining results in the second quarter, after an exceptional 2022 vintage. , marked by the Russian invasion of Ukraine and the surge in black gold prices.
Although it exceeded expectations for its net profit, Chevron was hardly better off than its rival ExxonMobil, whose result came out below expectations.
Automaker Ford fell (-3.39%) despite better-than-expected second quarter results, supported by its prices, and an increase in annual forecasts, some investors worried about losses generated by the entity dedicated to electric vehicles.
The Chinese electric vehicle manufacturer XPeng, listed on Wall Street, was still wanted (+ 15.68%) after the announcement on Wednesday of a partnership with Volkswagen.
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