Stock market: Wall Street offers a rebound, driven by technology

Stock market: Wall Street offers a rebound, driven by technology

(Photo: Getty Images)

MARKET REVIEWS. The New York Stock Exchange rallied on Tuesday, buoyed by technology stocks and bargain-hunting investors after seven weeks of losses for the Nasdaq.

To (re)consult market news

Stock indices at closing

In Toronto, the S&P/TSX it rose 284.60 points (+1.41%) to 20,491.01 points.

In New York, the S&P500 it advanced 80.84 points (+2.02%) to 4,088.85 points.

the nasdaq it advanced 321.73 points (+2.76%) to 11,984.52 points.

the DOW closed with a rise of 431.17 points (+1.34%) to 32,654.59 points.

the loon ended US$0.0016 (+0.2036%) at US$0.7800.

the Petroleum closed down US$2.25 (-1.97%) at US$111.95.

Prayed it rose $0.20 (+0.01%) to $1,814.20.

the bitcoin earned $450.05 (+1.52%) at $30,073.19.

The context

The return of risk appetite was “helped by positive news out of China” with more favorable statements from authorities regarding tech groups and their market prices, Wells Fargo analysts said.

The favorable data from the euro zone also had an influence, with a slight upward revision of economic growth, which stood at +0.3% in the first quarter compared to +0.2% in the first estimate, these analysts also point out .

Investors also reacted positively to the US retail sales figure, which rose as expected by 0.9% in April, suggesting that demand remains strong despite inflation.

But for Gregori Volokhine of Meeschaert Financial Services, “the interpretation of retail sales”, which only reflects a part of the more service-oriented US consumption, “was positive because we closed our eyes to inflation”.

Le gestionnaire de portefeuille a plutôt prété attention aux propos de directors de Walmart, le number one américain of the distribution, who discerned «une bifurcation dans sa clientèle, avec les petits revenus que se tournent vers les produits de première nécessité sans marque pour faire economies”.

“We see that low incomes are really beginning to suffer from inflation”, which does not bode well for consumption, added the specialist who waited several stock market rebound sessions before believing it.

The discount supermarket giant also suffered this Tuesday the action Walmart (WMT) shedding 11.38% to $131.35 after earnings fell 25% and a lower forecast for the rest of the year.

Short-term (2-year) bond yields rose to 2.70% from 2.56% on the back of further tough talk on inflation from Federal Reserve (Fed) Chairman Jerome Powell. 10-year-olds also narrowed to a lesser extent, approaching the 3% mark again at 2.98%.

The institution will drastically tighten its monetary conditions until there is “clear” evidence that inflation is slowing, Jerome said. Powell during a conversation with the Wall Street Journal.

If inflation doesn’t slow fast enough, “then we’ll have to consider acting more aggressively,” he said.

Another indicator that reassured investors, the pace of industrial production in the United States accelerated in April, in all categories, but in particular with a strong increase in automobile production for the second consecutive month.

The increase in total output was 1.1% from March, according to data released by the Fed on Tuesday.

It was much more than expected, as analysts expected a slowdown from the 0.9% increase in March and anticipated only +0.5%.

Almost every sector in the S&P finished higher, notably information technology (+2.91%), materials (+2.86%) and banks (+2.69%).

On the coast, Twitter (TWTR)at a loss for several sessions, while the social network is at the center of negotiations with Elon Musk, the capo of Tesla (TSLA)in the race for its acquisition, it finished in the green (+2.49% to US$38.32).

Shares of the electric carmaker gained 5.14% to $761.61.

the DIY channel house deposit (+1.68% to US$300.95) announced an increase in its sales forecast (+3%) for the full year.

the titles of Citigroup (C) were highly sought after (+7.56% to $51.05) after Berkshire Hathaway, owned by billionaire Warren Buffett, acquired a substantial stake in the bank.

The fund disclosed that it had purchased some 55 million shares of Citigroup worth nearly $3 billion.

the airline United Airlines (UAL) it soared 7.88% to $46.97. UAL will be able to fly its 52 Boeing 777 again, after a green light from the air regulatory authorities (FAA).

The company also said it forecast a 25% increase in travel demand compared to 2019, before the pandemic.

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