(New York) The New York Stock Exchange ended up on Monday, driven by new indicators that support the hypothesis of a controlled landing for the American economy, which allowed the Dow Jones to record an eleventh positive session in a row.
The star index of the New York market rose 0.52%, the broader NASDAQ index gained 0.19% and the broader S&P 500 index gained 0.40%.
In session, the Dow Jones rose to its highest level in 15 months.
After a first half driven by the NASDAQ and the giant technological capitalizations, it is now the venerable index which sets the tone, thanks to a rebalancing of portfolios and a hunt for bargains.
On Monday, it was the banks, shunned by investors in recent months, who sounded the charge, behind Goldman Sachs (+1.98%) and JPMorgan Chase (+1.97%), followed by Boeing (+1.92%) and Chevron (+1.97%).
The latter unexpectedly published preliminary results on Sunday, prior to the official publication on Friday. The oil giant of San Ramon (California), anticipates a net profit higher than analysts’ projections.
The Dow’s ride “is pretty incredible”, commented Maris Ogg, of Tower Bridge Advisors, especially since “so far the earnings season has really been mixed”. “Valuations are starting to be high, so we will run out of breath” to maintain the momentum of recent weeks, warns the analyst.
For Andy Kapyrin, of Regent Atlantic, the tempo could still benefit from the return of institutional investors, many of whom were still hesitant to return to the equity market.
Ambient optimism was fueled on Monday by the publication of PMI indicators, which showed a significant rebound in manufacturing activity in the United States in July, and a slower than expected slowdown in the services sector.
For José Torres, of Interactive Brokers, the hope of a soft landing of the American economy, the normalization of the job market and inflation explain that the purchasing managers in the industry show a level of confidence more observed since April 2022.
Wall Street is now waiting on Tuesday for the results of two big rivals in so-called generative artificial intelligence, Alphabet (+ 1.30%) and Microsoft (+ 0.39%), which both ended in the green on Monday.
“This week is going to be very important for equities, because a good part of the companies of the S&P 500 publish their results”, reminded Andy Kapyrin.
On the eve of the start of the US central bank’s (Fed) monetary policy meeting, rates were tightening slightly. The yield on 10-year US government bonds stood at 3.87%, against 3.83% on Friday at the close.
On the rating, Mattel (+ 1.84%) celebrated the whirlwind start of the film “Barbie”, which brought in $ 155 million in North America for its first weekend in theaters. Worldwide, revenues have already reached $337 million, according to the specialist site Box Office Mojo.
The AMC movie theater chain, the darling of many retail investors during the pandemic, was catapulted (+ 32.95%) by the decision of a Delaware judge, who on Friday invalidated the conversion of certain securities of the group into ordinary shares, which would have diluted the value of the latter.
The pizza giant Domino’s ended up slightly (+0.12%), after publishing a net profit slightly above expectations. The group from Ann Arbor (Michigan) said it was optimistic about the benefits of its new partnership with Uber Eats.
Tesla (+3.48%) triumphed over a lowering of recommendation from UBS, for which the share price, which has more than doubled since the start of the year, no longer justifies new purchases.
Toronto Stock Exchange
The strength of the energy sector allowed the Toronto Stock Exchange to advance late Monday morning, while the major US indices also rose.
The Toronto floor’s S&P/TSX Composite Index climbed 45.31 points to 20,592.82 points.
In the currency market, the Canadian dollar was trading at 75.93 cents US, up from its average price of 75.69 cents US on Friday.
The Canadian Press