Stock market: Wall Street surged thanks to technology

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MARKET REVIEW. North American stock markets closed higher on Wednesday after a day of strong quarterly results and easing investor concerns about US-China relations.

The New York Stock Exchange is operated by the Nasdaq.

To (re)read market news

Stock market indices at the close

in Toronto S&P/TSX rose by 40.61 points (+0.21%) to 19,545.94 points.

In New York S&P500 scored 63.98 points (+1.56%) with 4155.17 points.

in Nasdaq rose by 319.40 points (+2.59%) to 12,668.16 points.

in DOW scored 416.33 points (+1.29%) to 32,812.50 points.

in loon rose $0.0023 (+0.2959%) to $0.7788.

in oil fell $3.50 (-3.71%) to $90.92.

L’gold ended down $6.70 (-0.38%) to $1,764.40.

in bitcoin increased by $349.87 (+1.52%) to $23,336.18.

Context

Schwab analysts said the stock “rebounded on stronger-than-expected earnings and economic data.”

Same comment for Cresset Capital’s Jack Ablin, who believes that many companies performed “better than expected”.

In addition, he said, recent comments by US central bankers “show that they are trying to raise rates early to control inflation.”

“But this is based on the idea that overnight rates are likely to peak in January-February and be lower for the rest of the year,” an AFP analyst said, giving investors confidence. Especially since James Bullard, the president of the St. Louis Fed, assured Tuesday night that if the Fed had to “raise” rates, the US economy should be able to maneuver a “soft landing.” that is, without a major recession.

Optimistic indicator

On the economic front, growth in US service-sector activity accelerated in July for the first time in four months, according to the ISM professional federation’s barometer.

The index rose to 56.7%, up 1.4 percentage points from June. This improvement was unexpected and pleased the market.

Investors also felt relieved after Speaker of the US House of Representatives Nancy Pelosi left Taiwan.

According to Taipei, this visit provoked violent protests from Beijing, which considers the island a province and introduced 27 military aircraft into Taiwan’s air defense zone.

All sectors of the S&P closed higher, except for energy, as oil prices fell more than 3% after the OPEC+ meeting and the unexpected rise in U.S. crude inventories.

But the sectors of information technology (+2.69%), discretionary spending (+2.52%), which showed renewed confidence in the economy, and communications services (+2.48%) were in the lead.

Electronic payment firm PayPal (PYPL, +9.25% to $97.92) was marked after an increase in earnings forecasts for the year and, most notably, the announcement of a $15 billion (B$) share buyback program. The group will also cut staff.

COVID-19 Vaccine Manufacturer Moderna (MRNA), also listed on Nasdaq, posted better-than-expected second-quarter results and also announced a $3 billion share buyback. Its title ended with a 15.97% jump to $186.49.

Large Nasdaq caps also brought smiles. Apple (AAPL, +3.82% to $166.13), Meta (META, +5.37%, $168.80) Where Amazon (AMZN, +4%, $139.52).

Chain pharmacies and pharmacy CVS wanted (CVS, $101.38, +6.30%) after raising its 2022 revenue forecast showing that demand for over-the-counter COVID-19 tests helped prevent a drop in vaccine demand.

Microprocessor manufacturer AMD (AMD, $98.09) on the other hand, fell 1.21% after downgrading the forecast for the next quarter due to weaker demand for PCs.

In the bond market, the yield on 10-year bonds fell slightly to 2.70% instead of 2.74%. These two years have remained stable at 3.06%.

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