(New York) The New York Stock Exchange closed its twelfth consecutive session in the green on Tuesday, in the heart of the earnings season, while the market has already priced in a very likely Fed rate hike on Wednesday.
The Dow Jones Index climbed 0.08% to 35,438.07 points. Just ahead of Microsoft and Alphabet’s earnings release, the NASDAQ climbed 0.61% to 14,144.56 points. The extended index S
The Toronto Stock Exchange closed lower. The composite index S
In the currency market, the Canadian dollar traded at an average rate of 75.85 US cents, down from 75.92 US cents on Monday.
On the New York Commodities Exchange, crude oil rose 89 cents US to US$79.63 per barrel, while natural gas rose 6 cents US to US$2.75 per million. of BTUs.
The price of gold rose US$1.50 to US$1963.70 per ounce and that of copper rose US6 cents to US$3.92 per pound.
“That’s another good session!” Obviously, it’s all about company results,” commented Peter Cardillo of Spartan Capital.
“The market continues on its upward slope, we are approaching the record number of consecutive positive sessions which is 13”, he underlined.
Conglomerate General Electric (GE) jumped 6.27% to $117.16.
Driven by activity in aeronautics in the second quarter in a context of post-pandemic air traffic recovery, GE published quarterly results that beat expectations and revised its outlook for 2023 upwards.
The chemical and diversified group 3m, which produces medical equipment as well as adhesive rolls, abrasive products and post-its, saw its stock climb by 5.34%.
Excluding the exceptional charge of the $10.3 billion fine related to eternal pollutants, the group’s quarterly results were better than expected, even if turnover fell. 3m also raised its annual earnings per share projections.
Raytheon (RTX) accused him of a severe dive, the action dropping 10.22% to 87.10 dollars, one of the largest falls since the attacks of 2001.
The defense and aeronautics group will recall the Pratt and Whitney engines of certain Airbus A320Neo because of a risk of premature wear of a metal part.
This problem forces Pratt, an RTX subsidiary, to check hundreds of engines manufactured between 2015 and 2021 in the next nine to twelve months.
“Stocks in the Artificial Intelligence (AI) universe have been sought after,” pending Microsoft and Alphabet, said Steve Sosnick of Interactive Brokers.
Meta, which reports its results on Wednesday, climbed 0.98%, graphics card maker Nvidia 2.39%.
“A lot of enthusiasm has flowed into these actions pending the big earnings announcements,” he added.
Microsoft, which rose 1.70% on Tuesday, lost as much in post-close electronic trading. The software giant reported better-than-expected results, but a slowdown in its flagship “cloud” (remote computing) sector. Alphabet (Google) jumped 6% to $130 after the shutdown and news of revenue and profit beating expectations.
The express carrier UPS has reached a salary increase agreement with the drivers, avoiding the risk of a strike at the first American parcel delivery company.
The stock, however, fell 1.94% to $184.69. “They’re avoiding a potentially damaging strike, but their costs will go up,” commented Steve Sosnick.
In terms of macro news, the Conference Board’s consumer confidence index was robust in July in the United States, reaching a two-year high of 117 points.
On Wednesday, all eyes will be on the US Central Bank (Fed).
“The market is already pricing in a 25 basis point rate hike and a very ‘hawkish’ statement,” meaning tough, according to Peter Cardillo.
“He will reiterate that the fight against inflation is not over,” the analyst added. This new increase would bring interest rates to between 5.25% and 5.55%.
On the bond market, the ten-year rate remained almost stable at 3.88%.
At the end of the session, the securities of the regional banks Banc of California and PacWest were suspended while press reports mentioned a takeover of Pacwest by Banc of California, confirmed in a press release after the market closed.
Regional lender PacWest, which was heavily watched and heckled after the banking crisis that saw the bankruptcy of Silicon Valley Bank, fell 27% to $7.69 before being suspended from trading.
