(Photo: 123RF)
STOCK MARKET REVIEW. The strength of financial stocks enabled the Toronto Stock Exchange to rise Wednesday morning, while U.S. stock markets also recorded a slight increase.
The New York Stock Exchange opened higher on Wednesday after conciliatory comments on monetary policy from a U.S. central bank governor (Fed).
To (re) see market news
Stock market indices at noon
In Toronto, the S&P / TSX was up + 39.41 points (+ 0.20%) at 20,076.18 points.
In New York, the S&P500 collected + 7.44 points (+ 0.16%) at 4562.33 points.
The Nasdaq gained + 15.04 points (+ 0.11%) at 14,296.80 points.
The DOW collected + 45.80 points (+ 0.13%) at 35,462.78 points.
The loonie lost -0.0014 US $ (-0.1876%) to 0.7355 US $.
Oil gained +0.84 USD (+1.10%) at 77.25 USD.
The gold gained +2.80 USD (+0.14%) at 2063.00 USD.
The bitcoin fell by -56.68 USD (-0.15%) at 37,781.94 USD.
In Toronto, the S&P / TSX was down -9.19 points (-0.05%) at 19,566.40 points.
In New York, the S&P 500 advanced +7.34 points (+0.17%) to 4,385.72 points.
The Nasdaq rose by +121.08 points (+0.90%) to 13,639.86 points.
The DOW increased by +51.25 points (+0.15%) to 34,203.85 points.
The loonie dropped -0.0014 US $ (-0.1929%) to 0.7252 US $.
The oil was down -0.64 US $ (-0.83%) at 76.73 US $.
Gold was down -3.00 US $ (-0.15%) at 1,970.50 US $.
Bitcoin rose by +621.88 US $ (+1.79%) at 35,419.36 US $.
The context
Relaxation of bond yields and support for stocks “were fueled by Fed governor Christopher Waller, who said interest rates could be lowered if inflation continues to decline over the coming months,” explained Patrick O’Hare, analyst at Briefing.com.
On Tuesday, during a conference in Washington, Christopher Waller said he was “encouraged by the first signs of moderation in economic activity in the fourth quarter.”
October economic data “are consistent with the type of moderation in demand and easing of price pressure that will help bring inflation back to 2%,” added the Fed governor, who was optimistic about the slowdown in inflation in the United States. His remarks opened the door to a future cut in rates, which the most impatient investors see for next spring.
The U.S. government also released, before the opening of the New York market, a revision of economic growth in the United States in the third quarter. It was revised upwards to 5.2% at an annualized pace, compared to 4.9% previously estimated.
“These figures do not convey any economic pressure,” judged Patrick O’Hare.
“They show that indeed the U.S. economy was booming in the third quarter despite higher interest rates […]. But fourth quarter activity should not be as robust,” he added.
In terms of stocks, General Motors (GM) soared more than 10% after the automaker announced a massive share buyback plan.
GM will increase dividends and launch a massive $10 billion stock buyback plan, despite a $1.1 billion loss related to an unprecedented strike.
Shoe retailer FL saw its share jump 18.50%, as the chain exceeded expectations for its third-quarter results. It plans to achieve better sales for the year than previously expected.
The title of oil products distributor Phillips 66 was sought (PSX, +3.36%). The investment group Elliott Investment Management has taken a stake worth $1 billion in this energy company.
Data storage company NetApp (NTAP) soared more than 14% after raising its sales and profit forecasts for the entire year.
IT services group Hewlett-Packard Enterprise (HPE) saw its stock rise by almost 8%, while its fourth-quarter results, although lower than last year’s, turned out to be better than expected.
Tesla’s (TSLA) stock remained one of the most active at the start of trading, rising 1.4%.
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