(New York) The New York Stock Exchange was barely in the green on Thursday after several disappointing sessions, with investors turning to technology results.
The technology-dominated NASDAQ, which had dropped more than 1% the day before, kept its head above water (+0.00%) while the Dow Jones advanced 0.54% and the broader S&P index 500 by 0.19% around 10:15 a.m. Eastern Time.
On Wednesday, despite an upward start, the NASDAQ returned 1.15% to 15,683.37 points. The S&P 500 lost 0.58% to 5,022.21 points and the Dow Jones lost 0.12% to 37,753.31 points.
“The stock market is finding it increasingly difficult to maintain intraday gains as participants are more in de-risking mode after five consecutive positive months,” said Patrick O’Hare of Briefing.com.
The analyst believes that “valuations have been stretched to a point that has clashed with rising interest rates.”
Among the indicators of the day, weekly applications for unemployment benefits, which stagnated at 212,000, continue to “testify to a solid labor market which suggests good growth dynamics for the economy”.
Not necessarily what the stock market is looking for at the moment as it faces high interest rates on the bond market.
These were up slightly to 4.62% compared to 4.58% the day before, for ten-year Treasury bonds.
Activity in the Philadelphia industrial region jumped in April to 15.5 points when analysts expected it to stagnate.
Another element depicting a relatively dynamic economy, the American central bank (Fed) published its Beige Book on Wednesday.
This report, which comes two weeks before the next Fed monetary meeting, “brought largely good news,” said Art Hogan of B. Riley Wealth Management.
In March, American activity “increased slightly and entrepreneurs declared themselves cautiously optimistic,” added the analyst.
Several Fed members were scheduled to speak Thursday.
On the value side, investors will be watching for Netflix’s quarterly results (-0.39%) after the close.
The streaming leader will be followed next week by Tesla, which was under pressure losing 3.53% but also by Meta (+2.18%), Microsoft (-0.72%) and Alphabet (+0.04% ).
Brokers were reacting to the publication of the results of Taiwanese semiconductor giant TSMC, listed in Taiwan but also on the New York Stock Exchange, which published a quarterly profit up 9% year-on-year to $6.97 billion.
The stock of the AI chip maker, whose clients include Apple and Nvidia, nevertheless fell 4.45% at 9:50 a.m. (Eastern time).
Nvidia shares remained positive (+0.57%).
Online sales site eBay gained 2.59% after favorable comments from analysts while shares of Etsy, the craft site, fell 1.23%.
The action of Donald Trump’s media company, TMTG, listed on the market under the symbol DJT, lost 3.74% as the trial of the former president continues in New York, on a case of hidden payments during the 2016 campaign.
The stock of Snap, the parent company of the social network Snapchat popular with adolescents, soared 6.23% while the American House of Representatives will once again examine on Saturday a bill which provides for the ban on TikTok.
reference: www.lapresse.ca