Stock market: Wall Street ends up buying cheap after a black session

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MARKET OVERVIEW. The New York Stock Exchange closed higher, benefiting from bargain buying after a dark day on Tuesday in a session boosted by a new inflation indicator that showed a slight drop in prices in the United States.

Gains in the energy sector helped the TSX end the session higher.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX rose by 80.74 points (+0.41%) to 19,726.14 points.

In New York, the S&P500 rose by 13.32 points (+0.34%) to 3,946.01 points.

the Nasdaq collected 86.10 points (+0.74%) at 11,719.68 points.

the DOW collected 30.12 points (+0.10%) at 31,135.09 points.

the loons closed $0.0001 (+0.0175%) at $0.7594.

the oil rose $1.66 (+1.90%) to $88.97.

L’gold closed at $10.80 (-0.63%) at $1,706.60.

the Bitcoin down $372.48 (-1.83%) to $19,975.42.

the context

Wall Street took almost the entire session to make a decision, still moving in scattered order with a few minutes left before exiting openly in the green.

“We’ve evolved on tight margins, about balanced, because we were in the digestion phase,” summarized Jay Hatfield, manager of the ICAP ETF fund. “This is a classic day after a big slip.”

The New York market had one of its worst days of the year on Tuesday, with the Nasdaq dropping the fourth-highest total score in its history, higher than expected, after the release of the CPI price index.

“History teaches us that such one-day defaults turn out to be buying opportunities,” said George Smith of LPL Financial.

In fact, investors bought up some of the hardest-hit stocks on Tuesday, including You are here (TSLA, +3.59% to $302.61), Amazon (AMZN, +1.36% to $128.55), Netflix (NFLX, +2.75% to $224.12) and Apple (AAPL, +0.96% to $155.31).

Unsustainable on Tuesday, bond yields have stabilized. The 10-year US Treasury yield was unchanged at 3.40%.

The VIX index, which measures market volatility, fell slightly, another sign of calm.

However, the risk appetite that had swept Wall Street before Tuesday’s shutdown has not fully returned and some of the previous day’s injuries are still being attacked. Meta (META, -1.08% to $151.47)which has fallen to a new low since the start of the coronavirus pandemic in March 2020.

The payment specialist blockInvested heavily in the blockchain, the technology that cryptocurrencies are built on has been shunned (SQ, -1.47% to $68.56)how Riot Blockchain (RIOT, -0.92% to $7.56).

Investors welcomed the release of the PPI index for producer prices, or wholesale prices, which fell as expected by 0.1% over a month in August, although the index excluding food and energy rose by 0.4%, more than expected (0.3 % ).

“This data will not change the Fed’s decision next week,” Pantheon Macroeconomics’ Ian Shepherdson said in a statement.

Traders still see a 0.75 percentage point hike in the Fed’s interest rate at this meeting, but increasingly believe in the scenario of a 1.75 or even 2 percentage point hike by the end of the year from 1.50 points so far.

Two days before a crucial date, a bad wind has blown over the railway companies, which could lead to a massive strike by some of the rolling staff. CSX (CSX, -1.05% to $31.23), Canadian Citizen (CNR, -0.50% to CAD$157.89) and Union Pacific (UNP, -3.69% to $217.95) so withdrew.

Freezing cargo in the United States could seriously hamper the activities of a great many sectors, particularly mining Freeport-McMoRan (FCX, -3.29% to $30.03) or the steelworker US Steel (X, -8.63% to $20.43).

On his side, Starbucks was searched (SBUX, +5.53% to $92.70) after raising its growth forecasts for 2023-2025 on Tuesday. The coffee chain now expects annual sales growth of 7% to 9% on a comparable basis, up from 4% to 5% previously.

The decision of the cable network operator Komcast The doubling of the turnover earmarked for share buybacks to $20 billion was welcomed by the New York market (CMCSA, +3.02% to $34.47).

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