Stock market: Toronto closes at its lowest level in 16 months

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MARKET OVERVIEW. The Toronto Stock Exchange partially recovered from early morning weakness but still closed at its lowest level in 16 months, weighed down by losses in its three largest sectors.

The New York Stock Exchange ended in a mixed order, thanks to a rebound late in the session after comments from US Federal Reserve (Fed) officials spoke of a lower-than-expected rate hike in July.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX closed 286.13 points (-1.54%) at 18,329.06 points.

In New York, the S&P500 fell 11.40 points (-0.30%) to 3,790.38 points.

the Nasdaq rose by 3.60 points (+0.03%) to 11,251.19 points.

the DOW fell 142.62 points (-0.46%) to 30,630.17 points.

the loons lost $0.0081 (-1.0521%) to $0.7624.

the oil rose $0.17 (+0.18%) to $96.47.

L’gold closed at $27.50 (-1.58%) at $1,708.00.

the Bitcoin brought in $902.85 (+4.57%) to $20,647.34.

the context

The market reacted to comments from two Federal Reserve members, Gov. Christopher Waller and St. Louis branch chairman James Bullard, who both supported a 0.75 percentage point rate hike on Thursday at the next meeting on April 26-27 pronounce July.

“They have publicly insisted in recent months on prioritizing inflation” and raising interest rates, said Christopher Vecchio of DailyFX. “The fact that both are suggesting that 0.75 is reasonable gives the market reason to reconsider the idea that a one-point rise is in the pipeline.”

On Wednesday, investors reacted poorly to the release of a much better-than-expected CPI price index, betting the Fed would instead opt for a one-point hike in July, a first in modern times.

After the public statements by the central bankers, they again favored the hypothesis of 0.75 points.

For LPL Financial’s Quincy Krosby, Wall Street was also sensitive to other statements by Christopher Waller, who estimated that the economy was not in recession and would actually continue to grow, faster and slower.

However, the analyst cautioned that nothing is decided for the July meeting as certain indicators could change central bankers’ views.

In particular, the market will follow the results of the University of Michigan Consumer Confidence Survey, which specifically asks them for their 5-year inflation forecasts.

“If those forecasts go significantly higher, it’s going to be difficult for the Fed,” she said.

Overall, investor sentiment remains subdued and most of the data released on Thursday only added to concern.

Before the opening of the banks JPMorgan Chase (JPM, $108.00, -3.49%, -3.91 points) and Morgan Stanley (MS, $74.69, -0.39%, -0.29 points) had each reported results that were below analysts’ forecasts, whether in terms of sales or net income.

The brake on the investment bank was questionable, while 2021 had been a good year for IPOs and mergers and acquisitions.

JPMorgan Chase The result was also weighed down by the increase in the provision for bad debts, which indicates a slight deterioration in economic activity, while the bank had reversed reserves at the same time last year.

The market is anticipating disappointing results from many companies, which Quincy Krosby says should lead to a “value recalibration” of stocks to the downside.

The day’s macroeconomic indicators weighed on the climate just a little more.

Weekly jobless claims rose again to 244,000, a figure above economists’ expectations.

The Producer Price Index (PPI) for June also came in ahead of forecast at 1.1% over a month, versus 0.8% expected, suggesting there is “more inflation up the pipes,” according to Oxford Economics’ Mahir Rasheed.

The rebound at the end of the session benefited from this Apple (AAPL, $148.47, +2.05%, +2.98 points) and Microsoft (MSFT, $254.08, +0.54%, +1.36 points)with most very large caps ending in the green.

The Agency Nikkei (NI225, +0.62%, +164.62 points) stated the intention to do sointel (INTC, $37.71, +1.34%, +0.50 points) increase its prices, which has benefited the entire semiconductor sector, whether Qualcomm (QCOM, $141.90, +4.62%, +6.26 points), Broadcom (AVGO, $484.64, +0.60%, +2.91 points) Where AMD (AMD, $78.60, +1.39%, +1.08 points).

The action of the American pharmaceutical company Novavax (NVAX, -18.33 points) Plunged 26.20% to $51.62 after the release of a statement from the European Medicines Agency reporting cases of severe allergic reactions to its vaccine against Covid-19.

In the wake of JPMorgan Chase and Morgan Stanley, the banks have cleared the big back Goldman Sachs (GS, $281.59, -3.05%, -8.87 points) at Bank of America (BAC, $30.13, -2.30%, -0.71 points).

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