Stock market: Wall Street overcomes bad news and ends up in disarray


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MARKET OVERVIEW. The New York Stock Exchange ended mixed on Friday, broadly overcoming a range of headwinds from a poor macroeconomic indicator to dovish comments from members of the Fed, keeping alive hopes that inflation will ease.

Canada’s main stock index fell slightly on Friday after closing at a record high the previous day as markets reacted to a much stronger-than-expected jobs report. US stock markets were mixed.

To (again) consult market news

Stock market indices at close

in toronto, S&P/TSX fell by -66.90 points (-0.30%) to 22,308.93 points.

In New York, S&P 500 rose by +8.60 points (+0.16%) to 5,222.68 points.

THE Nasdaq down -0.01 points -0.06% to 17.17 points.

THE DOW rose by +125.08 points (+0.32%) to 39,512.84 points.

THE stud rose +$0.0004 (+0.0571%) to $0.7315.

THE oil closed $-1.06 (-1.34%) at $78.20.

L’gold ended +$26.60 (+1.14%) to $2,366.90.

THE bitcoin down -$2,253.54 (-3.59%) to $60,489.99.

Context

The consumer confidence index, measured by the University of Michigan’s monthly survey, fell to 67.4 points, the lowest in six months.

“This decline (-13% in one month) reinforces the hypothesis of a significant slowdown in growth this year” in the United States, commented Ian Shepherdson of Pantheon Macroeconomics.

According to the survey’s authors, US households “are expressing concern that inflation, unemployment and interest rates could be headed in the wrong direction in the coming year.”

“It’s not a surprise,” said CFRA’s Sam Stovall, “but the market is not happy about it,” said CFRA’s Sam Stovall.

Investors were also concerned about a slide in inflation expectations, with those polled seeing an average increase in prices of 3.5% annually over the twelve months, compared with 3.2% in April.

Inflation expectations are a crucial parameter for the US central bank (Fed), which does not want it to move away from its long-term inflation target of 2%, as this would lead to an inflationary spiral.

The session was also marred by statements from Fed Governor Michelle Bowman, who explained that at this stage she does not expect to cut the institution’s key rate this year.

“It’s too early to think about a rate cut,” added Boston Fed President Susan Collins.

In the process, bond rates rose. The yield on 10-year US Treasuries rose to 4.50%, compared with 4.45% the day before at the close.

However, despite these headwinds, the New York Stock Exchange refused to give in.

“The market continues to look to the future and wants to believe that the company’s results will continue to improve,” described Sam Stovall to justify Wall Street’s resistance. “And I believe they are betting on lower inflation next week.”

Operators are already expecting Wednesday’s publication of the CPI consumer price index.

Popular, lab Novavax (NVAX) saw its capitalization almost double (NVAX, +98.66%)catapulted by a deal that sees France’s Sanofi market its Covid-19 vaccine.

The Gaithersburg (Maryland) company could receive up to $1.2 billion from Sanofi as part of this partnership.

This is a significant advance for the lab, which in March 2023 announced “significant uncertainty” over its cash flow, penalized by a slowdown in sales of Covid vaccines.

Tesla (TSLA) he retreated (TSLA, -2.04%) after its boss Elon Musk indicated that the manufacturer would invest “well over 500 million US dollars” in the development of its compressor network.

Start-up Oklo (OKLO)which specializes in nuclear energy and is chaired by OpenAI (ChatGPT) chief Sam Altman, suddenly fell on its first day of trading on Wall Street on Friday (OKLO, -53.65%).

Since the merger announcement with listed company AltC in July, the company’s share price has surged, gaining more than 72%, fueled by speculation.

Chinese electric car manufacturer Zeekr (ZK)controlled by the Geely automotive group – the majority shareholder of Volvo Cars – took the opposite trajectory (ZK, +34.57%) for his Wall Street debut.

Taiwanese semiconductor giant TSMC (TSMCF)listed in Taiwan, but also in New York, advanced (TSMCF, +4.53%) after reporting a 60% year-on-year jump in turnover in April on the back of strong appetite for artificial intelligence.

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