(New York) The New York Stock Exchange ended higher on Thursday, spurred by the continued decline in bond rates, which carried the giant capitalizations of the technology sector, capable, on their own, of leading the market.
The Dow Jones gained 0.01%, the NASDAQ index gained 0.76% and the broader S&P 500 index gained 0.36%.
The session had started in the red, misguided by the 228,000 new jobless claims last week in the United States, significantly more than the 200,000 expected by economists.
In addition, the US government revised the figures for the previous period sharply upwards, from 198,000 to 246,000.
“This shows that the labor market is weakening,” commented Edward Moya of Oanda in a note. “The data related to all these announced layoffs are starting to show. »
On the eve of a holiday (Good Friday) without a session on Wall Street, trading was moderate, according to Jack Ablin of Cresset Capital, in an atmosphere already not conducive to risk taking.
Initially descending, the tide nevertheless ended up rising, to the point of pushing, in extremis, the three star indices into the green.
This turnaround “owes a lot to the easing of bond rates,” explained Jack Ablin. “That’s what helped tech stocks.”
The yield on 10-year US government bonds stood at 3.29%, against 3.31% the day before closing. Earlier, it had fallen to 3.24%, the lowest in seven months.
Technology stocks are particularly sensitive to changes in interest rates, which influence the financing of their often rapid growth.
The bond market move boosted Microsoft (+2.55%), Alphabet (+3.76%) and Meta (+2.18%), which together weigh nearly 20% of the NASDAQ index .
Also drafted, the semiconductor manufacturer Micron (+ 2.91%), suffering in recent days after reporting, last week, forecasts deemed cautious, and suffered from the opening of an investigation by the Chinese authorities. on its activities.
Elsewhere on the stock exchange, Airbnb was heckled (-4.90%) after the publication of a survey by the professional letter The Bear Cave, which shows that many companies managing properties posted on the platform are trying to circumvent it. and go live with users.
The Novavax laboratory soared (+ 11.46%) after the presentation, within the framework of the World Vaccine Congress, in Washington, of its new vaccine against the coronavirus and of results deemed encouraging from clinical trials of its vaccine combination. against COVID-19 and the flu.
The reference of Levi Strauss jeans lost buttons (-16.03%) despite a turnover and a quarterly net profit above expectations, investors retaining the cautious forecasts of the San Francisco group.
The semi-wholesale Costco brand faltered (-2.24%) after reporting a marked drop in sales in March, a leading indicator of a possible slowdown in consumption.
The spirits giant Constellation Brands, which notably controls the Corona and Modelo beer brands, was sought (+ 1.45%). Despite declining sales, the group improved its margins in wine and spirits (excluding beers), which enabled it to post a net profit above expectations.
The titles of the AMC cinema chain jumped (+ 20.99%) after the refusal of a Delaware judge to speed up the procedure which should make it possible to convert preference shares, distinct from the rest of the titles, into ordinary shares, and thus increase the number of the latter.
The New York Stock Exchange will be closed on Friday, which portends renewed volatility on Monday, as the market could not react before the publication on Friday of the US employment report for March.
Toronto Stock Exchange’s flagship index closes higher
North American stock markets ended the shortened trading week by closing higher on Thursday.
The Toronto floor’s S&P/TSX Composite Index gained 37.14 points to 20,196.69 points.
This week has seen a “dynamic rotation” away from growth stocks toward more defensive holdings, observed Mike Archibald, vice president and portfolio manager at AGF Investments.
Thursday started the same way, he said, but the trend reversed a bit as the day progressed. The NASDAQ, fueled by some of the big names in tech, outperformed its US peers, gaining 0.76% on steady advances throughout the day.
“It’s been a tough week for many market leaders compared to what’s been going on since the start of the year,” he said.
U.S. jobs data, due Friday, is expected to show slower payroll growth, Archibald said. It would be the latest in a string of economic data releases showing the economy is weakening.
“I think what we’ve seen this week, just in terms of economic data, is that things have unfolded […] a little faster than many expected, myself included,” he said.
Meanwhile, Canadian jobs data released Thursday was still strong, but the Bank of Canada is expected to continue its rate pause when it announces its decision next week, Archibald said. .
Next week will also be marked by new inflation data from the United States, as well as a handful of other key economic figures, he continued, while Friday will mark the start of the second quarter results in the United States. United States, starting with some large-cap financial institutions.
“The macro economy has really taken over here with the banking crisis, and obviously with weak economic data, but I think the financial results are going to continue to be very, very important,” Archibald said.
In the currency market, the Canadian dollar traded at an average rate of 74.19 cents US, down from 74.31 cents US on Wednesday.
On the New York Commodity Exchange, crude oil rose 9 cents US to US$80.70 a barrel, while natural gas plunged 14 cents US to US$2.01 a million. of BTUs.
The price of gold returned US$9.20 to US$2026.40 an ounce and that of copper rose 3 cents US to US$4.02 a pound.
The Canadian Press