(New York) The New York Stock Exchange ended higher on Thursday, buoyed by another positive inflation surprise and several upgrades to company forecasts, to the point of signing multi-month highs.
The Dow Jones gained 0.14%, the NASDAQ index gained 1.58% and the broader S
“It’s clearly a wave” of buying, commented Interactive Brokers’ Steve Sosnick of recent sessions.
The New York market reacted well to the US producer price index PPI, which came out below expectations in June, at 0.1% against 0.2% expected by economists.
Year on year, wholesale prices rose just 0.1%, their slowest pace since August 2020.
“The market is really encouraged by these two indices, the CPI [for consumer prices],” Wednesday, “and the PPI, which were both lower than expected,” Steve Sosnick explained.
For the past two years, investors have been worried about inflation and monetary tightening (raising interest rates) by the American central bank (Fed) to curb it. “But if it’s back down to 3% (for consumer prices), the Fed isn’t going to have to fight much more,” the analyst hopes.
Just like the day before, bond rates fell sharply. The yield on the 10-year US government bond was 3.76%, compared to 3.85% the day before closing.
Wall Street also hailed the first round of corporate reporting, which marked the official start of earnings season.
The soda and snacks giant PepsiCo (2.38%) reported results well above expectations and raised its annual forecast. The group from Purchase (State of New York) was driven by price increases which enabled it to compensate for stagnating or even falling volumes in several regions.
As for Delta Air Lines (-0.50%), the airline significantly beat forecasts and revised its annual forecast upwards. “Demand for air travel remains strong,” Chief Executive Ed Bastian said.
Satisfied with a better than expected macroeconomic climate, operators will now focus their attention on the health of companies, which will determine the trajectory of the indices in the short term, according to Steve Sosnick.
The bar is high for corporate earnings, warns Patrick O’Hare of Briefing.com, as “a lot of good news has already been priced in” by the market. A bad bank publication, for example, could cause a stir, he said.
Quarterly data from several banking giants is due Friday.
After a stabilization phase, the giant capitalizations of Wall Street, all from the technology sector, started again, whether Alphabet, the parent company of Google (4.36%), Amazon (2.68%) or Nvidia (4.73%).
Electric truck maker Nikola soared (60.87%) after booking an order for 50 vehicles from hydrogen producer BayoTech.
The cryptocurrency sector took off after a court ruling partially favorable to the issuers of the digital currency XRP, which was being sued by the US market regulator, the SEC.
The Coinbase cryptocurrency trading platform notably gained 24.49% in Thursday’s session alone.
The Perrigo laboratory advanced (0.48%) after the green light from the American Medicines Agency, the FDA, for the marketing in the United States of the first contraceptive pill without a prescription, called Opill.
Oil giant ExxonMobil fell (-1.83%) after revealing the acquisition of CO2 capture specialist Denbury (-1.26%), valued at $4.9 billion.
The Toronto Stock Exchange closed Thursday’s session with a gain of more than 200 points, supported by strength in the information technology, metals, financials and utilities sectors, while major U.S. indices also advanced.
The composite index S
In New York, the Dow Jones Industrial Average climbed 47.71 points to 34,395.14 points, while the broader S
In the currency market, the Canadian dollar traded at an average rate of 76.17 cents US, up from its average rate of 75.83 cents US on Wednesday.
On the New York Commodity Exchange, crude oil rose US$1.14 to US$76.89 a barrel, while natural gas returned US9 cents to US$2.55 a million. of BTUs.
The price of gold advanced US$2.10 to US$1,963.80 per ounce and copper rose US9 cents to US$3.94 per pound.
