Stock market: Wall Street ends the week higher, less concerned about recession and inflation

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MARKET OVERVIEW. The New York Stock Exchange closed higher on Friday, less concerned about an economic slowdown and sensitive to the prospect of a possible slowdown in inflation, which could give stocks a boost ahead of the trading season.

A rally in commodity-related sectors on Friday helped the Toronto Stock Exchange post its best weekly performance in six weeks, the first time it has not ended the week in the red since the early days of June.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX gained 345.79 points (+1.85%) to 19,062.91 points.

In New York, the S&P500 ended up with 116.01 points (+3.06%) at 3,911.74 points.

the Nasdaq rose by 375.43 points (+3.34%) to 11,607.62 points.

the DOW rose by 823.32 points (+2.68%) to 31,500.68 points.

the loons up $0.0062 (+0.8122%) to $0.7757.

the oil closed at $3.21 (+3.08%) at $107.48.

gold fell $1.40 (-0.08%) to $1,828.40.

the Bitcoin closed $312.82 (+1.50%) at $21,188.07.

the context

“Shares rose after an indicator showed that inflation expectations were easing and also on optimistic comments from (St. Louis Fed Chair James) Bullard on the economy,” Oanda’s Edward Moya said in a statement.

The final version of the University of Michigan survey for June showed that respondents had revised their one-year inflation forecast down slightly to 5.3% from 5.4%.

Expectations in 5 to 10 years have fallen to 3.1% from 3.3% previously.

As for James Bullard, the chairman on Friday estimated it was “a bit early to discuss the probabilities of a recession in the United States.” “In fact, I think it will pass” and that we will avoid that scenario, he stated.

To those two elements, Ventura Wealth Management’s Tom Cahill added new home sales in May that far exceeded expectations. “It’s good to see a higher-than-expected number,” the analyst said, while recent US macroeconomic indicators have been mostly negative.

“Hope that inflation has peaked and the economy remains solid encourages investors to buy stocks that have fallen sharply,” Edward Moya said. “It looks like Wall Street is starting to believe that even if the economy does go into a recession, it will be short-lived.”

“Home sales support the idea that the economy won’t slow down as much,” said Tom Cahill. “Investors think maybe the Federal Reserve can have a soft landing.”

“The momentum this week, so close to earnings season, bodes well for hopes for generally positive forecasts” for the coming quarters during company releases, argued Louis Navellier of Navellier & Associates in a statement.

“If that happens, one day we could see that last week was a low point of the year,” he added for the indices.

“For me, the expectations (from analysts) are too high” for the results that are to come, judged Tom Cahill. “Over the next two quarters, analysts will start lowering it” to reflect the economy’s loss of momentum.

Publications by Nike, the household goods chain Bed Bath & Beyond or the pharmacy group Walgreens Boots Alliance are supposed to give clues next week about the coming season, which doesn’t really get going until mid-July. .

On Friday, the direction was given by the giants of Wall Street as to whether Apple (AAPL) (+2.45%), Amazon (AMZN) (+3.58%), Tesla (TSLA) (+4.52%) or Meta (FB) (+7.19%).

The session was also enlivened by a bargain hunt, from which cruise passengers in particular benefited, e.g Carnival (CCL) (+12.44%) or royal Caribbean (RCL) (+15.77%).

Despite quarterly results slightly below expectations FedEx (FDX) (+7.16% to $243.24) was sought on Friday after a better-than-expected forecast for fiscal year 2022/23 (June-May) was released.

The group is supported by tariff increases as well as the dynamics of its freight activities.

The Swedish manufacturer of high-end electric vehicles North Star (PSNY) started hesitantly on the Nasdaq (+0.15% to USD 13.00) on the first trading day after the merger with the listed vehicle Gores Guggenheim.

biotech Seegen (SGEN) (+3.06% to $179.33), which specializes in treating cancer, continued to benefit from interest from Merck’s lab, which would have accelerated its approach to an acquisition, according to The Wall Street Journal.

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