Stock market: Wall Street ends on hopes for a less radical Fed

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MARKET OVERVIEW. The New York Stock Exchange closed higher on Monday as some investors expected an easing of monetary policy from the US Federal Reserve (Fed) after the release of several macroeconomic indicators that were deemed disappointing.

On the Toronto Stock Exchange, the energy sector declined while materials fell as Canadian miners were also impacted by falling commodity prices.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX rose by 0.79 points (+0.00%) to 20,180.60 points.

In New York, the S&P500 rose by 16.99 points (+0.40%) to 4,297.14 points.

the Nasdaq rose by 80.87 points (+0.62%) to 13,128.05 points.

the DOW ended up with 151.39 points (+0.45%) at 33,912.44 points.

the loons closed at $0.0081 (-1.0383%) at $0.7748.

the oil ended down $3.92 (-4.26%) at $88.17.

L’gold fell $21.00 (-1.16%) to $1,794.50.

the Bitcoin lost $266.98 (-1.10%) to $24,058.42.

the context

First, Wall Street opened lower after a string of poor macro numbers.

In China, industrial production and retail sales slowed in June, while investment slowed in July.

Added to this was the decline in the manufacturing activity index for the New York region, which fell sharply to -31.3 in August, while economists were expecting a 5-point increase.

But as the CPI price index recorded weaker-than-expected last Wednesday, investors found hope in these ominous pictures of the global economy.

“The Fed will exit earlier [de remonter son taux directeur] when inflation slows, and is more likely to ease when the global economy settles down,” said Chris Low of FHN Financial.

The hypothesis that a Fed will raise its policy rate by no more than one point in total over the last three meetings of the year wins under the CME Stock Exchange model, while sticking with two consecutive hikes of 0.75 percentage points each.

“It looks like the market is believing in a scenario that we don’t know about yet,” commented Nick Reece of Merk Investments. “Over the past week he has shown incredible resilience and a desire to keep moving up.”

The ratio of investors who think the rise will continue to those who believe it will fall has hit its highest level since mid-January.

“What has worked since June, which is to revert to the riskiest companies, especially tech, will not work for long,” Regent Atlantic’s Andy Kapyrin nonetheless warned. “They are no longer being discounted and there are still a lot of risks on the horizon.”

Essentially defensive stocks, i.e. stocks that are less economically vulnerable, shone Coke (KO, $64.50, +1.26%), MC Donalds (MCD, $265.44, +1.24%) or cable network operators Komcast (CMCSA, $40.57, +1.42%).

After enjoying scalded investor favor early in the session, the bond market gave back much of its gains. The US 10-year Treasury yield, which moves inversely with bond prices, edged down to 2.79% from 2.83% on Friday.

The meeting was livened up by the announcement of a nearly $1 billion equity investment by investment firm Third Point in the capital of , according to a source familiar with the matter Disney (DIS, +2.21% to $124.26).

If the fund validates the group’s current strategy, it will make several proposals, including a split with sports media group ESPN.

Morgan Stanley acquired approximately 400,000 shares Revlon (REV), which rose 30.64% to $8.57 on Monday. Since filing for bankruptcy in mid-June, the cosmetics group has been one of the favorites of vans.

Abused the lab last week modern resumed on Monday (MRNA, +3.27% to $176.78)supported by UK Medicines Agency’s approval of its new Covid vaccine against the Omicron variant.

The final passage of the climate and health plan in the US Congress on Friday has brought some companies to benefit from investments in renewable energy and other household endowment bonuses.

Announced as the big winner of this text among electric vehicle manufacturers, You are here gained height as a result (TSLA, +3.10% to $927.96).

Oil stocks were penalized on Monday, weighed down by the prospect of lower demand related to the economic situation and falling black gold prices ExxonMobil (XOM, $92.32, -1.79%) Where rafters (CVX, $156.81, -1.90%).

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