(New York and Toronto) The New York Stock Exchange ended slightly in the green on Monday, catching its breath after posting its best week of the year.
The Dow Jones index gained 0.10% to 34,095.86 points, the technology-dominated NASDAQ advanced 0.30% to 13,518.78 points and the broader S index
Weakness in energy stocks pushed the Toronto Stock Exchange benchmark index lower.
The composite index S
On the currency market, the Canadian dollar traded at an average rate of 73.12 US cents, up from 73.08 US cents on Friday.
On the New York Mercantile Exchange, the price of crude oil rose 31 US cents to US$80.82 per barrel, while that of natural gas contracted 25 US cents to US$3.26 per million BTUs.
The price of gold fell US$10.60 to US$1,988.60 per ounce and copper rose nearly US$4 cents to US$3.72 per pound.
“Last week was the best week of the year for the stock market. It is completely normal and healthy to see the market taking a break to digest last week’s sharp rise,” Adam Sarhan of 50 Park Investments told AFP.
“We have a situation where the market is slowing down to consolidate the latest movements and wait for a new catalyst to continue the momentum. This could be the words of a Fed official, Jerome Powell (the central bank chairman) or company results,” the analyst added.
This week, while the agenda is sparse in terms of indicators, several members of the American Federal Reserve are due to speak, including its President Jerome Powell on Thursday, during a debate at the IMF.
A final series of company results is also expected including those of entertainment specialists Disney (-1.20% at closing), Wynn Resorts (2.57%), MGM Resorts (0.33%), Warner Bros Discovery (-2.72%) as well as Uber (0.84%), Lyft (-1.22%) or Roblox (-2.97%).
For JPMorgan analysts, “the fall in bond yields and the accommodative decisions of central banks are interpreted by the markets as a positive element in the short term”.
But, the analysts add in a note, “we think stocks will soon rethink the profit/risk ratio in an environment where the Fed will keep rates high for longer, where earnings expectations are too optimistic and where margins are in danger “.
Yields on 10-year Treasury notes stood at 4.65%, up from 4.57% on Wednesday and 5% two weeks ago.
This week, the US Treasury will launch new debt issues, including 40 billion ten-year notes on Wednesday and 24 billion thirty-year notes on Thursday.
“That’s a lot of debt to digest,” Patrick O’Hare commented.
In terms of indicators, it’s a quiet week with only the first estimate of consumer confidence for November, published by the University of Michigan on Wednesday.
On the stock market, automakers fell more than 2% like Ford and General Motors while Stellantis lost 2.76%.
Regional banks have fared poorly as credit conditions tighten and loan demand slows across sectors, according to the Fed’s latest monthly survey of bank lending officials. Comerica dropped 2.52%, Zions Bancorportation -1.67%, and Western Alliance -2.71%.
Microprocessor maker Nvidia gained 1.66% to $457, with its quarterly results not due until November 21.
The title of the very volatile Bumble application, which reserves the first step for women, lost 4.39% after the announced departure of its CEO Whitney Wolfe Herd. She is replaced in this position by Lidiane Jones, who comes from the professional collaborative application Slack, where she was general manager.