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MARKET OVERVIEW. The New York Stock Exchange ended Wednesday on mixed marks, breathless in a bearish market about the outlook for the US economy and its companies.
The release of strong quarterly results buoyed the energy and materials sectors on Wednesday, helping the Toronto Stock Exchange recover after hitting its lowest level in three months the day before.
Consult market news (again).
Stock market indices at close of trading
In Toronto, the S&P/TSX rose by 53.42 points (+0.26%) to 20,744.23 points.
In New York, the S&P500 closed up 8.76 points (+0.21%) at 4,183.96 points.
that Nasdaq fell 1.81 points (-0.01%) to 12,488.93 points.
that DOW rose by 61.75 points (+0.19%) to 33,301.93 points.
that loons fell $0.0001 (-0.0164%) to hit $0.7798.
that oil rose $0.40 (+0.39%) to $102.10.
gold fell $17.50 (-0.92%) to $1,886.60.
that Bitcoin rose $871.25 (+2.28%) to $39,019.03.
“There was no real conviction in this attempt to recover,” Briefing.com analysts said in a note.
Wall Street is being weighed down by “weakening technical indicators, a downtrend and a reaction to mixed corporate results,” they continued. “And that’s not even mentioning concerns about future growth.”
After starting in the green, the Nasdaq gained 1.70% before faltering.
“It’s disappointing to see that we can’t pull off a decent recovery,” said Jack Ablin, head of investment strategy at Cresset Capital.
“People question the advisability of investing in stocks when the likelihood of a recession has increased significantly over the past three or four months,” the analyst explained.
The hundreds of American companies that have released their numbers since the beginning of the week paint a mixed picture, with results that are on average slightly better than expected, but often with cautious rhetoric.
Microsoft (MSFT) For example, (+4.81% to $283.22) performed better than expected in terms of sales and net income. The group suffered a slight slowdown, but was able to rely on the dynamism of the cloud (remote computing).
On the other hand, it’s disappointment for Letters (GOOG) (Google’s parent company), sanctioned for missing analysts’ estimates of its revenue and net income (-3.75% to $2,300.41).
The Mountain View (California) giant has announced slow growth in advertising revenue, particularly on YouTube, in direct competition with TikTok.
Wednesday after the stock market, Meta (FB) (ex-Facebook) also surprised, but positively, with a higher than expected net profit and above all a stronger than expected number of active Facebook users.
The stock, which was down 3.32% during the session, was up more than 15% after the close.
The credit card specialist is also above expectations Visa (V) (+6.47% to $214.11) has seen its revenue grow 25% over the year and expects continued growth, helped in particular by the acceleration in travel.
This good release brought the competitor after it MasterCard (MY) (+5.07% to $361.57).
Dark side, the aircraft manufacturer Boeing (BA) (-7.53% to $154.46) completely underperformed expectations, mired in shipping delays, rising costs and exceptional strains related to the war in Ukraine.
Another step back for Twitter (TWTR) (-2.09% to $48.64), two days after Elon Musk agreed to acquire the platform.
Spotify (SPOT) took the hit (-12.44% to $US96.67) after reporting revenue and significantly lower than forecast paid subscriber growth.
The toy maker Mattel (MAT) rose (+10.76% to $24.49) after the Wall Street Journal reported that management contacted several investment firms, including Apollo Global Management.
After falling sharply since last week, bond yields rose again on Wednesday.
The 10-year US Treasury yield was 2.82%, down from 2.72% the previous day.
The probability of four interest rate hikes of half a percentage point each at the next Federal Reserve (Fed) meetings to dampen inflation is estimated by the operators to be over 83%.
“I don’t think the Fed needs to raise rates as aggressively as they announced,” said Jack Amblin, “because the economy and demand are weakening.”