(New York) The New York Stock Exchange was trading in the green on Monday after ending last week on an excellent note, the S&P 500, the most representative of the market, having reached a historic record.
Around 10:10 a.m. ET, the Dow Jones was up 0.53%, the tech-heavy NASDAQ was up 0.68% and the broader S&P 500 was up 0.47%.
Spurred by soaring shares of semiconductor makers and other big tech names, the S&P 500 broke a two-year-old record on Friday, ending at 4,839.81 points.
The broader index gained 1.2% over the week. The Dow Jones, which also surpassed its last peak dating from December, posted a weekly gain of 0.7% on Friday and the NASDAQ of 2.3%.
“Investors were reassured by the University of Michigan consumer confidence survey which improved, reaching its highest level since the summer of 2021,” noted Art Hogan of B. Riley Wealth Management.
The week will be busy in corporate results with United Airlines after the close on Monday. Then on Tuesday, Johnson & Johnson, General Electric, Procter and Gamble, Lockeed Martin and Netflix among others surge. Tesla is expected on Wednesday.
On the macroeconomic front, the Department of Commerce will unveil its first estimate of US GDP growth in the fourth quarter on Thursday.
Analysts forecast growth of 2% year-on-year, according to Briefing.com.
Finally, new elements on inflation will appear on Friday with the PCE price index for December.
Bond rates were down at 4.08% for ten-year bonds compared to 4.12% on Friday around 10 a.m. (Eastern time).
On the monetary policy side, “members of the Federal Reserve (Fed) are now subject to their usual period of silence” before the monetary decision of January 31, recalled Will Compernolle, of FHN Financial.
The analyst adds that “the latest appearances by Fed members have focused on steering markets away from expectations of a rate cut over the next two meetings.”
“The convergence between these market expectations and the Fed’s action is generally a gradual process,” he continued, estimating that investors would however soon bet on a rate cut in May, rather than in March.
On the value front, Boeing held steady (+0.08%) despite requests from the regulator, the FAA, to inspect new Boeing aircraft, the 737-900.erafter the incidents observed on the sealed doors of the Boeing 737 MAX 9 with a very similar design.
This announcement follows the incident that occurred on January 5 during an Alaska Airlines flight during which a door came loose from the cabin of a Boeing 737 MAX 9.
The Macy’s store chain soared 4.25% to $18.39 after rejecting a $5.8 billion buyout offer from a group of investors.
The department store brand, which is experiencing financial difficulties, confirmed in a statement Sunday evening that it “received an unsolicited and non-binding proposal from Arkhouse Management and Brigade Capital Management to acquire all outstanding shares of the company for $21 per share in cash, on 1er December 2023.”
The American agricultural commodities giant Archer Daniels Midland (ADM) collapsed by more than 18%. The trading company has suspended its financial director, placing him on administrative secondment, pending an investigation into the accounting methods used in the group’s Nutrition branch.
The American low-cost airlines Spirit (+18%) and JetBlue (+1.90%) were sought after filing an appeal on Friday before a federal appeals court against the blocking of their proposed merger, decided earlier by a Boston judge.