Stock market: Wall Street closes as bond rates fall


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MARKET OVERVIEW. After a shaky start to the session, the New York Stock Exchange closed in the green on Thursday, boosted by a drop in bond yields after weekly US job demand was stronger than expected.

Canada’s main stock index hit a new record high, led by strength in the energy, telecommunications and base metals sectors.

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Stock market indices at close

in toronto, S&P/TSX rose by +114.67 points (+0.52%) to 22,373.83 points.

In New York, S&P 500 gained +26.45 points (+0.51%) to 5214.12 points.

THE Nasdaq gained +43.51 points (+0.27%) to 16,346.26 points.

THE DOW ended +331.43 points (+0.85%) to 39,387.82 points.

THE stud gained +$0.0024 (+0.3298%) to $0.7312.

THE oil rose +$0.59 (+0.75%) to $79.58.

L’gold up +$27.40 (+1.18%) to $2349.70.

THE bitcoin closed up +$176.68 (+0.28%) to $62,415.87.

Context

“We had a nice recovery this session. This is mainly because weekly jobless claims have increased, which has helped squeeze bond yields,” explained Peter Cardillo of Spartan Capital.

Weekly US jobless claims jumped to a nine-month high of 231,000, while analysts had expected 214,000 new claims.

Paradoxically, these figures provided some relief to the heart of the stock market, which was in a position to start falling after several disappointing company results.

The rise in jobless claims “may be a sign that labor market conditions are softening,” said Nancy Vanden Houten of Oxford Economics.

Slowing the labor market is one of the goals of the US Federal Reserve System (Fed) in the fight against overheating and inflation. This reassures the stock market, which expects at least one rate cut before the end of the year.

Bond rates fell sharply to 4.45% compared to 4.49% for the 10-year rate.

Another factor that lowered rates and restored the luster of stocks was the well-subscribed US$25 billion (US$G) issue of 30-year government bonds. “Demand for these bonds was slightly above average, easing pressure on the bond market,” commented Peter Cardillo.

In terms of value, the securities of several companies have been penalized following disappointing results or prospects.

This is the case with the accommodation booking platform Airbnb ( ABNB ), which fell 6.87% to $147.05, while forecasting second-quarter revenue below analysts’ expectations of a low of $2.68 billion.

However, the company says it is experiencing “strong demand for travel”, especially with the Olympics taking place in Paris this summer.

British group arm ( ARM ), a subsidiary of Japan’s SoftBank and a champion of microprocessor architectures, fell 2.34% to $103.59.

Its quarterly result beat expectations with revenue of 928 million US dollars (M$US), when analysts were betting on 866 million. But his projections for the year disappointed investors.

Video game platform Roblox tumbled 22.06% to $30.42 as it revised downward its activity forecasts for the year, raising doubts about general consumer enthusiasm.

However, in the first quarter, the company saw losses narrow and revenue rose to $801 million from $655 million a year ago.

Bank securities concluded in zelené as American bank (BAC, +1.51% to $38.28) or Citigroup (C, +0.91% to $63.32) while 30-year mortgage rates — the standard in the United States — fell for the first time in five weeks, which may revive credit demand.

Very volatile action Donald Trump’s media company (DJT), soared 10.41% to $54.39 after announcing it had appointed a new auditor. Its previous auditor was blacklisted by the stock exchange, the SEC, for fraud.

Spanish Giant Railway construction got off to a rocky start in New York trading, falling 17.10% to $40.

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