(New York) The New York Stock Exchange opened higher on Thursday, posting a positive reaction to the daily indicator flurry and Meta results, as the Dow Jones stormed to its all-time high for consecutive gains .
By 9:55 a.m. EST, the flagship Wall Street index gained 0.24%, the NASDAQ index gained 1.53% and the broader S index
If closed in the green, the Dow Jones would match its best winning streak, with 14 positive sessions in a row, established in May 1897.
The New York market welcomed the macroeconomic data of the day, first and foremost growth in the second quarter.
Gross domestic product (GDP) grew by 2.4% year on year from April to June, significantly more than the 2% predicted by economists.
The report, released by the US Department of Commerce, also showed that the pace of price increases was lower than expected in the second quarter, according to the PCE index, at 3.8% against 4.0% expected.
“Stronger growth and lower inflation (PCE) preserve the potential for a soft landing” of the American economy, reacted Art Hogan of B. Riley Wealth Management.
The impression was reinforced by the acceleration of durable goods orders, well beyond expectations, as well as a decline in weekly jobless claims.
“The Fed (US central bank) is winning the battle,” says Adam Sarhan of 50 Park Investments. This table allowed Wall Street to cash in without flinching, on Wednesday, the 11th increase in the institution’s key rate since last year.
The stars are aligned for the Dow Jones, “which underperformed the NASDAQ and the S
“There is a movement of investors towards what has not worked in 2023” so far, namely the Dow Jones or the Russell 2000 index, which includes Wall Street small caps, continues the analyst.
Energy, banks, health, these sectors shunned in the first quarter are now favored by operators.
The historical series of the Dow Jones is all the more remarkable that on these 13 sessions, the venerable index took only slightly more than 5% in total.
“Moderation and consistency is a winning combination on Wall Street,” says Adam Sarhan. “Nobody wants to see 10% increases” per session.
The NASDAQ was led by Meta (Facebook, Instagram, WhatsApp), which soared (8.04%) after publishing, Wednesday after the close, results above expectations. The Menlo Park group notably recorded an 11% increase in its turnover thanks, in part, to better advertising targeting, facilitated by artificial intelligence.
After the results of Google’s parent company, Alphabet (2.88%), on Tuesday, Meta accounts signal a rebound in the online advertising market, which had decelerated since last year.
McDonald’s was sought after (1.71%) after reporting revenue up 11.7% like-for-like, which was boosted by price increases, with all regions of the group posting growth at two digits.
Honeywell (-4.07%) suffered from quarterly revenue slightly below expectations, weighed down by its real estate services business, although the conglomerate beat forecasts for its profit and raised its annual forecast.
The cable operator Comcast was praised (7.04%) for its results exceeding market projections, partly explained by the worldwide success of the feature film “Super Mario, the movie”, produced by the Universal studio, one of its subsidiaries.
Disappointment on the other hand for the Bristol-Myers Squibb laboratory (-2.14%), with a turnover lower than analysts’ forecasts, and a downward revision of its annual forecasts, due to a sharper slowdown than expected sales of the Revlimid treatment for bone marrow cancer.
