Stock market: Wall Street closes higher, bargain hunting and confidence in the US economy

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MARKET OVERVIEW. The New York Stock Exchange closed higher on Thursday, buoyed by bargain hunting and a sense that the US economy, although slowing, is still in good shape.

A broad rally led by the technology and materials sectors helped the Toronto Stock Exchange close higher on Thursday as investors continued to interpret Bank of Canada comments and searched for signs that interest rates are starting to slow the economy and curb inflation.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX closed up 318.09 points (+1.54%) at 21,031.81 points.

In New York, the S&P500 rose by 75.59 points (+1.84%) to 4,176.82 points.

the Nasdaq ended up with 322.44 points (+2.69%) at 12,316.90 points.

the DOW rose by 435.05 points (+1.33%) to 33,248.28 points.

the loons rose by US$0.0053 (+0.6753%) to US$0.7954.

the oil rose $2.16 (+1.87%) to $117.42.

gold rose $23.80 (+1.29%) to $1,872.50.

the Bitcoin rose $714.06 (+2.42%) to $30,275.27.

the context

According to LPL Financial’s Quincy Krosby, Thursday’s recovery was fueled by bargain buying after back-to-back price declines. “It’s still attractive,” she explained.

Technology and growth stocks have particularly benefited from this move, Tesla (TSLA) (+4.68%) at Letters (GOOG) (+3.16%), over Amazon (AMZN) (+3.15%).

Meta (FB) (ex-Facebook) performed even better (+5.42% to $198.86) after Wednesday after announcing the retirement of number two Sheryl Sandberg, a key figure in transforming the network into a juggernaut. an exit had taken place.

According to Quincy Krosby, the general tone was positive for the technology as well, due to some good results released this week, mainly the customer relations specialist Salesforce (CRM) (+7.00% to $188.40), which raised its full-year earnings forecast.

Also lowering the forecasts of Microsoft (MSFT) (+0.79% to $274.58), yet one of the most reliable tech companies in terms of earnings, wasn’t enough to anger the New York market.

The sharp appreciation of the dollar is hurting the group’s overseas sales, prompting the Redmond, Washington giant to downgrade both its sales and earnings forecasts for the fourth quarter of its phased exercise (April to June).

Also for Oanda’s Edward Moya, some have been encouraged to take a stand ahead of the Labor Department’s release of the American employment report on Friday.

“Traders expect the labor market to slow, which could ease inflation fears a bit,” the analyst said.

On Thursday, the ADP report said 128,000 jobs were added in the private sector in May, less than half what economists were expecting (295,000).

In addition, the April figures were revised down from 247,000 to 202,000 new jobs.

“The ADP report has been wrong for two years,” said Maris Ogg of Tower Bridge Advisors nonetheless. “I don’t think you need to pay much attention to that.”

Last ray of sunshine on Wall Street was the announcement by the Organization of the Petroleum Exporting Countries (OPEC) and its OPEC+ allies that they would agree to a higher-than-expected increase in their production in July.

“This is significant,” commented Third Bridge’s Peter McNally, as “this is the first deviation from planned increases in two years.”

The only ones not to benefit from this acceleration were, unsurprisingly, oil stocks, which are among the few to have outperformed floating year-to-date.

Conoco Phillips (COP) (-0.68%), Occidental Petroleum (OXY) (-1.59%) or Marathon Oil (MRO) (-0.57%) all ended in the red.

The specialist for remote computing (cloud) Hewlett Packard Enterprise (HPE) was penalized (-5.20% to $14.96) after releasing results that were slightly below expectations.

The company, which emerged from the Hewlett-Packard spin-off in 2015, has also revised its profit forecast for fiscal 2022 downwards.

Wall Street, on the other hand, welcomed the results of the multi-brand clothing group better than expected HPV (HPV) (1.91% to $72.47), driven by the momentum of the Calvin Klein brand, particularly in North America.

The banner of the “meme stock” movement (stocks whose price was driven by petty owners), Game Stop (GME)gained ground (+10.38% to $134.00) despite a loss that nearly tripled in a year, in tandem with an increase in sales.

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