Stock market: Wall Street ends sharply on technical buying, unconvinced

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MARKET OVERVIEW. The New York Stock Exchange closed sharply higher on Tuesday as last week’s sharp decline added to the strain, but pessimism remains dominant.

Gains in the energy sector helped the Toronto Stock Exchange’s flagship index finish higher on Tuesday, as major US indices rallied on the day after a pause to erase some of last week’s sharp losses.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX rose by 73.66 points (+0.38%) to 19,257.29 points.

In New York, the S&P500 rose by 89.95 points (+2.45%) to 3,764.79 points.

the Nasdaq rose by 270.95 points (+2.51%) to 11,069.30 points.

the DOW closed up 641.47 points (+2.15%) at 30,530.25 points.

the loons rose by US$0.0039 (+0.5002%) to US$0.7743.

the oil rose $1.02 (+0.93%) to $110.58.

gold down $5.90 (-0.32%) to $1,834.70.

the Bitcoin rose $586.23 (+2.89%) to $20,867.89.

the context

“Whatever metric you were looking at, the market had fallen too far and it was time for a rebound,” said LPL Financial’s Quincy Krosby.

For the analyst, the move was accentuated by operators who had bet on indices to fall and had to buy back to cover.

The VIX index, which measures market volatility, fell slightly, reflecting slightly increased risk appetite.

The bond market also gave the impression of giving up for less secure investments, especially stocks.

The 10-year Treasury yield, which moves inversely with their prices, rose to 3.28% from 3.22% on Friday (Monday was a US holiday).

The indices were driven by the main assessments of the rating, by Apple (AAPL) (+3.28%) at Letters (GOOG) (+4.11%), over Tesla (TSLA) (+9.35%), Amazon (AMZN) (+2.32%) or Microsoft (MSFT) (+2.46%).

Only Meta (FB) stood out (-4.09% to $157.05) as the group reached an amicable settlement with the US Department of Justice. Facebook has been accused of offering advertisers the ability to choose who sees their ads, specifically based on ethnic, social and religious criteria.

“The question is, is this recovery the right one?” Quincy Krosby said in reference to a possible market reset that has bottomed out.

Judging by Tuesday’s trading volume, one of the lowest since the start of the year, the day after a bank holiday, there is a lack of conviction and few investors are re-entering the market.

“Do people really want to take risks now without knowing if the Fed is going to push us into a recession or if American companies are going to lower their forecasts?” Quincy Krosby asked.

In a speech on Tuesday, the Fed’s Richmond, Virginia branch chairman Tom Barkin defended the logic of a Federal Reserve-induced slowdown that could bring about a “return to normalcy” in the economy while believing a recession was being shunned will.

Wall Street will follow Fed Chair Jerome Powell’s hearings before the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday.

In particular, Quincy Krosby expects pressing questions from elected members of the House of Representatives about “what the consequences of this aggressive position” by the Fed amid accelerated monetary tightening “will be for the average American.”

On the side the American company Spirit Airlines (SAVE) was boosted by the competitor’s takeover bid increase (+7.94% to $22.97). Jet Blue (JBL) (-1.64%), from $31.50 to $33.50, valuing the company at around $3.64 billion. Shareholders will have to decide between a merger with another company, Frontier, or an acquisition by JetBlue during the June 30 annual meeting.

Wall Street welcomed the decision Kellogg (K) (+1.95% to $68.86) to split into three separate companies to support the growth of its herbal products business, which is seen as the most promising. The Battle Creek (Michigan) group will also form a business that will regroup grains in North America, with the third incorporating Kellogg’s remaining operations.

The specialist for electronic signature contracts DocuSign (DOCU) fell 1.65% to $59.55 after announcing the departure of its CEO Dan Springer.

Supported by a rating upgrade by Credit Suisse analysts and the rise in oil prices, ExxonMobil (XOM)parades (+6.22% to $91.48) with, in its wake, most of the stocks in the sector Chevron (CVX) (+4.19%) at Marathon Oil (MRO) (3.11%).

After a very dicey week that saw bitcoin fall below $20,000 on Saturday, the cryptocurrency sector benefited from the slight recovery in digital currencies such as Coin Base (COIN) (+12.24%), Riot Blockchain (RIOT) (+9.46%) or block (Square) (+3.44%).

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