(New York) The New York Stock Exchange on Wednesday concluded a small rise, which allowed the Dow Jones and, narrowly, the S&P 500 to set new records in a weak market at the end of the year.
According to final results at the close, the Dow Jones index, up six sessions in a row, has gathered 0.25% to 36,488.63 points, a new high. The S&P 500, within two points, stands at another record, the third in a week, at 4,793.06 points (+ 0.14%).
The technology-dominated NASDAQ, which hovered around equilibrium, dropped 0.10% to 15,766.22 points.
“Equities had a mixed session with the Dow Jones managing to post a sixth straight day of gains as the S&P 500 is on its way to its best quarter of the year,” commented Wells Fargo analysts.
While the rise in equity indices was modest, in the bond market, yields on 10-year treasury bills rose sharply to 1.55% from 1.48%.
For Patrick O’Hare, of Briefing.com, the market “had a positive drift, but it was little traded”, while trading volumes were low all this week between Christmas and New Years.
“There was hardly any news that animated the market,” added the analyst.
“Investors continued to gauge the threat of the Omicron variant when there is a record number of daily cases, while health authorities (CDC) halved the time of isolation of those infected,” said analysts by Schwab.
The seven-day average of new daily COVID-19 cases in the United States stood at 265,427 on Tuesday, a record high, according to data from Johns Hopkins University, surpassing a previous all-time high in January.
Among the few indicators of the day, the goods trade deficit for November climbed to a record US 97.8 billion (+ 17.5%) on a surge in imports, reflecting strong US demand.
On the real estate side, the promises of home sales in the United States for last month disappointed analysts, however, falling 2.2% from the previous month. Potential buyers, still numerous, face high prices and a shortage of houses and apartments for sale.
Tesla stock was feverish, ending 0.21% down to US $ 1,086.19, as group boss Elon Musk converted his last batch of 1.5 million call options Tesla shares while selling some 900,000 shares for about $ 1 billion, to cover the taxes associated with those transactions.
Victoria’s Secret, the lingerie maker, soared 12.19% to US $ 54.50 after announcing to buy back a volume of its own shares and confirming its guidance for the last quarter.
The distribution sector continued its momentum with Macy’s (+ 3.57%) or the electronics chain Best Buy (+ 1.35%).
US laboratory Biogen climbed 9.26% to US $ 258.31, following press reports suggesting an agreement by South Korean Samsung to take over the manufacturer of the controversial new drug against Alzheimer’s.
The TSX on the rise
The famous year-end effect dubbed the “Santa Claus rally” was in full swing on Wednesday as the main Canadian stock index closed higher after the first day of trading since the holiday break.
The S & P / TSX Composite Index was up 114.97 points to end its price at 21,344.65.
Historically, the stock markets tend to end the year higher in the last week of December and the effect even stretches into the first days of January. It is this phenomenon that has been dubbed the “Santa Claus rally”.
Canada’s main stock index may also have benefited from some catching-up phase on Wednesday, as US markets posted gains earlier this week as Canadian markets were closed for the Christmas break, the strategist suggested. .
In addition, Colin Cieszynski believes investors could be encouraged by the announcement of US health officials who now recommend a five-day isolation period rather than ten for Americans with COVID-19 but asymptomatic.
Ontario health officials have postponed a press conference scheduled for Tuesday to review their isolation guidelines. In Quebec, the authorities have already relaxed the isolation instructions for asymptomatic healthcare workers.
“This was generally seen as positive by the markets,” says Cieszynski. The market, I believe, feels that [les gouvernements] will not return to the large confinements we have seen in the past, but will try to manage everything while keeping the economy open. “
The Canadian dollar was 78.10 US cents compared to 78.05 US cents on December 24.
The gold price for February fell US $ 5.10 to hit US $ 1,805.80 an ounce while the March copper price fell two cents to hit US $ 4.41. the pound.
After the Santa Claus rally is over, Colin Cieszynski urges investors to watch big business reports in the fourth quarter. These results should give a good idea of what the economy will look like in 2022.
The Canadian Press