Wall Street closes sharply higher

(New York) The New York Stock Exchange ended sharply higher on Thursday, driven by bargain hunting, investor sentiment that the US Federal Reserve (Fed) is a bit less radical than expected and some good corporate results.

Updated yesterday at 4:09pm.

The Dow Jones rose 1.61% to 32,637.19 points, the Nasdaq 2.68% to 11,740.65 points, and the broader S&P 500 index 1.99% to 4,057.84 points.

“Investors who think the market is undervalued have come forward,” Adam Sarhan of 50 Park Investments commented, along with speculative traders who bought to cover their positions.

After a series of eight consecutive weeks of declines, for the first time in almost a century (1923), the Dow appeared on Thursday able to close the week with a gain (+4.39% so far).

“This series of increases (throughout the week) is like a breather,” Adam Sarhan said. »

“What is inspiring some is that a lot of the bad news is already priced in” relative to market prices, said Patrick O’Hare of Briefing.com.

The approaching end of the month also played out, according to Adam Sarhan, several managers making last-minute adjustments to wallets (“window decorating”).

The New York market also retained the good impression made by the minutes of the latest meeting of the Federal Reserve, which was published on Wednesday.

Western Union’s Joe Manimbo explained that the scenario, which emerged this week, for a central bank to slow from September in its monetary tightening so as not to overwhelm US economic activity, was realistic.

Wall Street has also been sensitive to the good numbers released by many companies, particularly in the retail sector, which started on the wrong foot last week with Walmart and Target.

Thus, Macy’s supermarket chain (+19.31% to $22.92) fared better than analysts expected, as did decorative items brand Williams-Sonoma (+13.06%) or low-price distributor Dollar General (+13.71%), which even raised its forecast for the year.

A gusty wind suddenly blew across the entire retail sector, benefiting Nordstrom (+5.26%), which also beat expectations the day before, but also Walmart (+2.13%), Target (+4.33%) or Home Depot (+3.15%) .

Does not echo and confine China, Ukraine conflict tends to fall back on the news, “In this environment, the absence of bad news is good news,” summed up Adam Sarhan, “C is the reason the market is going up. A lot.”

The operators also welcomed the announcement of the acquisition of remote (cloud) computing company VMware (+3.17% to $124.36) by semiconductor maker Broadcom (+3.58% at $550.66), for a $61 billion project.

The operation is a ray of sunshine for a sector that has had a very difficult start to the year in the stock market.

Graphics card maker Nvidia (+5.16% to $178.51) benefited from better-than-expected results from analysts, even if its outlook disappointed.

Twitter was also sought (+6.35% to $39.52), after the announcement on Wednesday that Elon Musk had raised the share of the direct contribution he was putting on the table to buy the social network, to $33.5 billion, compared to 21 originally planned.

And so the entrepreneur relinquished the entire $12.5 billion loan secured by Tesla shares that he would have initially subscribed to, bringing a revival in the electric car maker’s title (+7.43% at $707.73).

Chinese e-commerce giant Alibaba (+14.79% to $94.48) was touted for its better-than-expected results. The group, unlike many others, has benefited from the sanitary confinement in China, which has boosted online sales.

Manchester United, listed in New York, has been penalized (-3.77% to $12.52) after reporting a quarterly loss and an increase in net debt, which occurs at the heart of a disastrous season for the English football club.

The Toronto Stock Exchange closed higher at 5e consecutive session

The Toronto Stock Exchange closed higher on Thursday for the fifth consecutive session, approaching a three-week high thanks to a broad recovery also observed in major US markets.

The S&P/TSX Composite Index on the Toronto Stock Exchange rose 148.43 points to end the day at 20,532.18.

In the currency market, the Canadian dollar was trading at an average price of 78.17 US cents, up from 77.90 US cents the day before.

Canadian Press

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