(New York) The New York Stock Exchange ended higher on Monday, pulled by investors’ appetite for neglected values, in a wait-and-see market ahead of a crucial inflation indicator on Wednesday and the start of the earnings season on Thursday.
The Dow Jones gained 0.62%, the NASDAQ index gained 0.18% and the broader S&P 500 index rose 0.24%.
“There is indecision” on Wall Street, noted Angelo Kourkafas, of Edward Jones. “The market is in a waiting position before the inflation figures (CPI index expected on Wednesday) and the start of the results season”, Thursday.
For once, the giant capitalizations of the NASDAQ were subject to profit taking, while investors shifted to so-called defensive stocks, i.e. theoretically less sensitive to the economic situation. .
Caterpillar (+1.50%), the DIY brand Home Depot (+2.51%) or the industrial conglomerate Honeywell (+2.20%) were thus in the spotlight, while Amazon (-2 .04%), Alphabet (-2.72%) or Microsoft (-1.60%) folded the wing.
Another indicator of portfolio adjustments, the Russell 2000 index, made up of small caps, did better on Monday than the three major indices of the New York market (+1.44%).
Meta (+1.23%) was the only tech ogre to survive, after its new social network, Threads, a competitor to Twitter, passed the 100 million user mark, less than five days after its launch. . Never has an application reached this threshold so quickly.
For Angelo Kourkafas, the good direction of the market on Monday is also due to the producer price index in China, which came out down 5.4% over one year in June, its lowest level since December 2015.
“Historically, producer prices in China are a leading indicator of American prices”, because the United States is, by far, the largest importer of Chinese products, recalls the analyst. “So it’s one more figure that goes in the direction of disinflation. »
This indicator favored a clear easing of bond yields. The yield on 2-year US government bonds fell to 4.86% from 4.94% on Friday’s close.
On the rating, several banks fell after the intervention of the vice-president of the American central bank (Fed), Michael Barr, who notably proposed to impose on medium-sized establishments to strengthen their capital.
The measure would notably concern KeyCorp (-0.83%) or PNC (-0.20%). On the other hand, the capital requirements would remain unchanged for the smallest brands, such as Comerica (+1.54%), Western Alliance (+1.65%) or Zions (+2.00%).
The Novavax laboratory jumped (+ 29.46%) after indicating that the Canadian government would pay it some 350 million dollars in compensation for doses of coronavirus vaccine which it ultimately never took delivery of.
Activist investor Carl Icahn’s company, Icahn Enterprises, rallied (+20.20%). The Wall Street Journal reported that the octogenarian had agreed to decorrelate personal loans from his company, which offers a breath of fresh air to Icahn Enterprises.
The group had been accused, in early May, of inflating the value of some of its assets by the investment fund Hindenburg Research, which had caused a drop of nearly 40% in the share price.
The airline Spirit gained altitude (+2.07%), while its possible buyer, jetBlue, abandoned its alliance with American Airlines to increase its chances of receiving the green light from regulators for this takeover.
Mattel was sought after (+2.49%), in the run-up to the theatrical release on July 21 of the film “Barbie”, on which the toymaker has bet big and which is already making a lot of noise.