Stock market: Wall Street is clinging to recovery, closing for 4th straight session

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MARKET OVERVIEW. The New York Stock Exchange closed higher on Thursday, posting a fourth session in the green for the Nasdaq and S&P 500.

North American stock markets rose on Thursday, driven by a broad rally led by the energy sector as crude oil prices rebounded from two weak days.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX rose by 333.51 points (+1.78%) to 19,063.17 points.

In New York, the S&P500 rose by 57.54 points (+1.50%) to 3,902.62 points.

the Nasdaq ended up with 259.49 points (+2.28%) at 11,621.35 points.

the DOW closed up 346.87 points (+1.12%) at 31,384.55 points.

the loons up $0.0040 (+0.5252%) to $0.7712.

the oil closed $3.63 (+3.68%) at $102.16.

L’gold closed $2.00 (+0.12%) at $1,738.50.

the Bitcoin rose $1,265.78 (+6.22%) to $21,631.15.

the context

“Markets continued to show some resilience amid global recession fears,” as the S&P 500 posted its fourth consecutive session of gains, the first since March, analysts at Schwab commented.

“But the excitement remains with the arrival of the results season next week,” they added.

The fragility of the recovery in investor sentiment was reflected in bond yields, where the 10-year yield curve slipped again – albeit only slightly – below the 2-year yield in what is often taken as a bad sign for economic growth.

The 10-year Treasury bill yield was 3%, versus 3.02% for shorter-dated bonds.

“It’s the first time we’ve had four positive days in a row and it feels good,” Tower Bridge Advisors’ Maris Ogg told AFP.

“But I don’t think the worst is behind us. It’s a breather before earnings season is upon us,” added the portfolio manager.

The market has continued its momentum since the Fed released minutes on Wednesday, which showed the central bank was more determined than ever to contain high inflation, reassuring investors.

One of the Federal Reserve Governors, Christopher Waller, reiterated on Thursday that he was in favor of a further three-quarters-of-a-point increase in interest rates at the next meeting in late July.

On the economic data front, weekly jobless claims rose to the highest since January last week at 235k, slightly more than expected.

While the layoffs remain anecdotal in a still tight labor market, some noted that the downward pressure on prices from wage demands was beginning to ease.

A very tight labor market favors wage increases and thus inflation.

“A surge in layoffs, particularly in sectors like technology, crypto, artificial intelligence and autonomous driving, suggests a reduced ability to demand higher salaries,” noted National Securities’ Art Hogan.

Official US jobs numbers for June are due Friday.

“Let’s be realistic,” warned Maris Ogg. “In the next three to six months everything will depend on inflation. Because if it fades the Fed will be less aggressive, but if it stays in place the central bank will keep tightening its screws and for now it’s the unknown,” she added, fearing that if prices rose by 8, 6% would fall to 6% by the end of the year, “that’s not enough” to calm the market.

In terms of ratios, the energy sector (+3.51%), helped by a rebound in crude oil prices, drove the market, as did the Nasdaq technology sector (+2.48%).

Semiconductor stocks, which have been battered by recession prospects and supply concerns in recent weeks, have regained strength on positive forecasts from Samsung Electronics.

The South Korean giant Samsung (005930, KRW 58,200, +3.19%, +1800 points) — the world’s largest smartphone maker — forecasts a 11.4% year-on-year increase in operating profit for the second quarter and expects revenue to rise 21% between April and June.

Micron Technology (MU, $58.85, +1.48 points) increased by 2.58%, AMD (AMD, $79.30, +3.95 points) of 5.24% and Nvidia (NVDA, $158.58, +7.28 points) of 4.81%.

In another register, the fleeting action of video game distribution GameStop (GME, +17.77 points) jumped 15.14% to $135.12 after announcing a division by four of its title.

GameStop is up to date to multiply its titles to be even more accessible to small investors after Amazon (AMZN, $116.33, +1.75%, +2.00 points), Tesla (TSLA, $733.63, +5.53%, +38.43 points) and Spotify (SPOT, $105.83, +2.88%, +2.96 points).

The title of the cinema AMC (AMC, +15.19%, +1.91 points)another virus-prone stock, was also up more than 15% to $14.48.

The household goods chain bed bath and beyond Had a great day (BBBY, +21.70% to $5.44, +0.97 points) after a descent into hell in recent sessions, thanks to the initiative of his interim manager, Sue Cove, who has bought shares in the company, showing her confidence in the future of these deals.

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