(New York) The New York Stock Exchange had a rebound session on Tuesday, thanks to a flood of results from good companies, just before those of Alphabet (Google) and Microsoft at the close.
Wall Street indexes broke out of a negative streak, with the Dow Jones gaining 0.62% to 33,141.38 points, the tech-heavy NASDAQ climbing 0.93% to 13,139.88 points and the broader index S
Ten-year U.S. bond yields remained calm at 4.81% around 4:30 p.m. ET, following their feverish bout at 5% early Monday for the first time in 16 years.
“Stocks were higher on resilient economic data and profits from non-tech groups which continued to impress across the board,” commented Edward Moya of Oanda.
So far three-quarters of the companies that have published their quarterly accounts “have done better than expected,” said Art Hogan of B. Riley Wealth Management.
Patrick O’Hare of Briefing noted that Coca-Cola, General Electric, Verizon, Kimberly Clark, General Motors and Halliburton in particular, had “all exceeded expectations”.
After the closing bell, Google parent Alphabet announced a 42% year-over-year jump in third-quarter profits with advertising revenues up after a difficult 2022.
The Californian group recorded double-digit growth, with 76.7 billion in turnover, 11% year-on-year.
However, the stock which closed up 1.69% lost 5.48% in after-hours electronic trading.
Investors seemed disappointed by its cloud business (remote computing), whose turnover fell short of expectations at $8.4 billion.
Microsoft did better than expected with an acceleration of its activity in the cloud. Quarterly net profit was $22.3 billion, up 27% year-on-year.
The stock soared more than 5% in post-closing trading after concluding a cautious increase of 0.37% to $330.53.
“We saw a nice bullish return today. There were many company results and most large caps did better than expected,” summarized Peter Cardillo of Spartan Capital.
“If this continues, there is a real possibility of an upward rebound thanks to corporate results, which will be a good finish towards the fourth quarter,” launched the analyst.
“At least bond rates are no longer increasing,” he said, while the recent rise in bond yields – reflecting fears that Fed rates will remain high for a long time – has handicapped stocks.
Elsewhere on the stock market, the music platform Spotify, based in Stockholm but listed in New York, created a pleasant surprise by posting a rare operating profit in the 3rd quarter.
Spotify has been occasionally profitable in certain quarters. But the platform has regularly shown losses, despite meteoric growth in the number of its subscribers and a lead over its competitors.
The group had 574 million active users at the end of the quarter, or 23 million more year-on-year (26%). The stock soared on the NASDAQ (10.36%) to $170.63, its second highest level of the year.
General Motors was battered, however, ending down 2.31% at $28.55, the lowest since the start of the year for Mary Barra’s group.
First, and despite better than expected results, the market mainly remembered the fact that GM decided not to give forecasts for the entire financial year due to the impact that the prolonged strike led by the United Auto Workers union.
UAW further extended its strike on Tuesday, calling for a work stoppage at the GM plant in Arlington (Texas), described by the union as “the largest and most lucrative” of the group.
And in the second part of the session, California announced that it would suspend the driving license of Cruise, GM’s autonomous vehicle subsidiary, after several accidents in San Francisco.
The Toronto Stock Exchange closed lower on Tuesday, dragged down by losses in the energy and battery metals sectors, while major US indices advanced.
The composite index S
On the foreign exchange market, the Canadian dollar traded at an average rate of 72.83 US cents, down from 73.03 US cents on Monday.
