(New York) The New York Stock Exchange, focused on corporate results, signed on Wednesday, with eight consecutive sessions in the green, its longest streak of positive days in almost four years.
Pending accounts from Tesla and Netflix after the close, the Dow Jones Index gained 0.31% to 35,061.21 points, the tech-heavy NASDAQ gleaned 0.03% to 14,358.02 points and the S
“Stocks are rising as hopes of a soft landing for the US economy grow and regional banks show signs of stabilizing,” said Edward Moya of Oanda.
Wall Street hadn’t had eight positive sessions in a row since September 2019.
Investment bank Goldman Sachs started the day with disappointing quarterly results. Its net profit was down 62% in the second quarter, affected by the lack of M&A transactions as well as lower activity in asset management.
Its earnings per share amounted to 3.08 dollars for the quarter, against 7.73 dollars a year earlier. Analysts had expected $3.10.
After a bout of weakness at the start of the session, the stock finally climbed 0.97%.
“The trajectory turned when CEO David Solomon showed optimism in the business ahead,” Moya noted.
Regional banks like Ally Financial (5.40%) and Western Alliance (7.78%) beat expectations in maintaining deposits, providing heartfelt comfort to the banking sector reeling from the March crisis among regional institutions.
Earnings season is off to a good start so far, with 82% of S
But for Maris Ogg of Tower Bridge Advisors, “you won’t get a real picture of the situation until you get to the middle of the earnings season”, because, according to her, “companies with good numbers announce first, those with bad numbers come after”.
The analyst remains convinced, however, that “the worst is behind us for the stock market which probably bottomed out in October”.
Just after the closing, Tesla announced better than expected results.
Earnings per share were 91 cents vs. 82 cents expected, or $2.7 billion for the second quarter (20%) on revenue of $24.92 billion.
The share, which ended in a slight decline of 0.71%, recovered very slightly (0.21%) in post-closing electronic trading. Elon Musk’s group has not changed its vehicle delivery forecast for the year.
Netflix, also eagerly awaited, revealed after the closing, more new subscribers than expected (5.89 million) from April to June thanks in particular to its policy of restricting the sharing of passwords between users.
The net profit is also better than projected even if the turnover is not. The title up slightly at closing (0.59%) dropped more than 5% in electronic trading afterwards.
United Airlines soared 2.65% after the close where the stock ended flat. Its second quarter results were well ahead of expectations and its revenue, to $14.2 billion, jumped more than 17% on a boom in travel demand.
Microsoft, which hit a new high on Tuesday at $359.49, or a market capitalization of $2.7 trillion — second only to Apple — fell 1.23%.
The software giant has announced that it is extending the deadline for the acquisition of video game publisher Activision Blizzard to October 18. This additional time is supposed to allow them to overcome the last regulatory obstacles, in particular in the United Kingdom. Activision stock fell 0.58%.
Broad-based strength in the Toronto Stock Exchange, particularly that of its battery metals sector, helped the trading floor’s benchmark index close higher on Wednesday, while major U.S. indexes followed suit.
Toronto Composite Index S
In New York, the Dow Jones industrial average gained 109.28 points to 35,061.21 points, while the broader S index
In the currency market, the Canadian dollar traded at an average rate of 75.93 US cents, up from 75.82 US cents on Tuesday.
On the New York Commodity Exchange, crude oil prices fell 37 cents to US$75.29 a barrel, while natural gas fell 3 cents to US$2.60 per million BTU.
The price of gold remained unchanged at US$1980.80 per ounce and that of copper depreciated 2 cents US to US$3.81 per pound.
