(New York) The New York Stock Exchange ended its best month of the year on a positive note on Friday, helped by results that beat pessimistic expectations and by the notion that the Fed will not be too sluggish to control the economy and inflation to break.
Updated yesterday at 5:38pm.
According to the final results, the Dow Jones index ended the session up 0.97% at 32,845.13 points, up almost 7% over the month.
The NASDAQ rose 1.88% to 12,390.69 points, a jump of more than 12% in July.
The broader S&P 500 index rose 1.42% to 4130.29 points on Friday and is up more than 9% for the month, its best monthly performance since November 2020.
“This progress is thanks to the positive results of some large corporations, including Apple and Amazon,” summarize the analysts at Schwab. “However, both Intel and Procter and Gamble failed to meet expectations and issued frustrating forecasts that limited Dow Jones’ gains,” they added.
Releases from tech megacaps, Amazon and Apple, had indeed calmed down after the market close on Thursday, with better-than-expected sales, although their net results were less brilliant.
Amazon’s stock rose 10.36% to $134.95 while second-quarter sales rose 7%, even as the online retail giant posted a related $2 billion loss on exceptional items.
NASDAQ heavyweight Apple (+3.28%) also saw robust demand for its iPhones, but earnings fell in the second quarter.
In contrast, Dow Jones stock Intel plunged 8.56% after falling into the red in the second quarter and lowering its revenue guidance for 2022, citing a slowdown in global activity.
Streaming access company Roku plummeted (-23.07%) as management admitted it did not anticipate “the severity of the downturn in the advertising market.”
Finally, consumer staples group Procter & Gamble (P&G) fell 6.11% after announcing disappointing annual financial targets.
P&G, which makes Gillette razors and Pampers diapers, among other things, cited the negative impact of exchange rates, higher commodity prices and rising transportation costs as factors weighing on its growth.
The Toronto Stock Exchange gained more than 200 points and also closed higher.
The Toronto Floor’s S&P/TSX Composite Index rose 236.21 points to 19,692.92 points on Friday.
Ten of the 11 sectors on the Toronto Stock Exchange rose on Friday, with energy, industrials and materials rising 2.9%, 1.7% and 2.4%, respectively. The consumer staples sector was the only sector down 0.74%.
For the full month of July, the S&P/TSX was up 4.41%, while the S&P 500 was up more than 9%.
On the foreign exchange market, the Canadian dollar traded at an average rate of 77.98 US cents, compared to 77.91 US cents the previous day.
Profits from hydrocarbons
US hydrocarbon giants ExxonMobil and Chevron have made huge gains this year as oil prices have soared.
In the second quarter alone, ExxonMobil made $17.9 billion and Chevron made $11.6 billion. On Wall Street, stock Exxon gained 4.74% and stock Chevron +8.90%.
At macroeconomic level, after the surprise of a 0.9% fall in US GDP in the second quarter, published on Thursday, the Fed’s favorite inflation index for the month of June confirmed a clear acceleration in price increases, which may have peaked.
The PCE index, which is based on consumer spending and the central bank’s preferred barometer for measuring inflation, has risen 6.8% since June 2021 and 1% since May, led by energy and food.
Edward Yardeni of analyst firm Yardeni Research said: “Investors appear to be betting on a mild recession and moderate inflation, which could end the Federal Reserve’s (Fed) tightening cycle sooner.
As expected, the Fed raised interest rates by 75 basis points on Thursday and indicated that if it wanted to tighten the screw further, it was prepared to cut it if necessary.
US consumer confidence recovered somewhat in July but remained very close to the all-time low hit in June, restoring investor hearts.
10-year bond yields fell slightly to 2.64%, their lowest level in four months.
With the Canadian Press