(New York) The New York Stock Exchange opened higher on Monday, well oriented by a favorable note for Tesla, against a backdrop of bargain hunting, at the start of a week rich in American indicators, which will provide information on health of the consumer and the rate of inflation.
Around 10 a.m. ET, the Dow Jones was up 0.22%, the NASDAQ was up 0.62% and the broader S index was up 0.62%.
“We had a rating upgrade on Tesla which gave the market some momentum,” explained Art Hogan of B. Riley Wealth Management.
Morgan Stanley analysts estimate that the Dojo supercomputer, developed by the automaker to improve its self-driving software, could add more than $500 billion to the company’s value, and have raised their price target by 60% .
Tesla CEO (6.77%), Elon Musk, announced in June that the firm planned to invest $1 billion in the project by next year.
“At the end of a difficult week, it didn’t take much to start on the rise,” commented Art Hogan.
This spark benefited technology stocks, which had consolidated last week. Amazon (1.79%), Meta (2.66%) and Netflix (1.29%) were on the rise.
Still in the technological department, Qualcomm was at the forefront (3.12%), driven by a new contract to supply Apple, for three years, with its new modems intended to optimize the performance of the 5G network, which will be integrated into iPhones. .
Apple was stalling (-0.04%), on the eve of the presentation of the iPhone 15, which will be one of the highlights of the week, according to Art Hogan, with the publication of the software publisher’s quarterly results and remote computing specialist (cloud) Oracle (-0.74%), Monday.
Even on the rise, the New York market continued to evolve within tight margins, still waiting for a new burst of indicators later this week. The rebound was already running out of steam shortly after the opening.
On the menu, the CPI price index for August, Wednesday, retail sales in the United States, Thursday, and the latest edition of the consumer sentiment survey published by the University of Michigan.
The CPI index “will have more consequences than we think for the November meeting” of the American central bank (Fed), the status quo being almost established for the September meeting next week, estimated Art Hogan.
“By November, any indicator is likely to move the market”, which is still wondering about a possible new rate increase at this deadline.
RTX (formerly Raytheon) made a hard landing (-5.99%) after reporting an exceptional $3 billion charge in the third quarter related to the failure of an engine component at its subsidiary Pratt
Boeing (-1.00%) did not benefit from the announcement of the public company Vietnam Airlines which formalized an order for aircraft with a total value estimated at $7.8 billion.
Another major event expected this week is the first listing of British microprocessor designer Arm on Thursday. It will be the biggest IPO in almost two years on Wall Street and the first steps of American electric vehicle maker Rivian.
The latest valuation of Arm, whose chips are integrated into 99% of smartphones worldwide, was estimated between 48 and 52 billion dollars.
The IPO market is really coming alive with, to follow, the shopping delivery platform Instacart, whose parent company, Mapblebear, reported on Monday a maximum valuation of $7.8 billion, very far from the $39 billion estimated during its last fundraising in early 2021.