(Photo: 123RF)
–
MARKET REVIEW. Wall Street ended in red on Thursday, digesting the quarterly results of several big names in the New York market and mixed indicators on the economic front.
The clues
In Toronto, the S&P/TSX fell 38 points, or 0.24%, to 16,024 points.
The S&P 500 fell 10 points, or 0.34%, to 3,215 points.
The Dow Jones let go 135 points, or 0.50%, to 26,734 points.
The Nasdaq lost 149 points, or 1.40%, to 10,534 points.
The Canadian dollar depreciated 0.40% to US $ 0.7367.
The oil dropped US $ 0.47, or 1.14%, to US $ 40.73.
L’or fell US $ 17.10, or 0.94%, to US $ 1796.70.
The context
Bank of America (-2.72%) and Morgan Stanley (+ 2.51%) concluded Thursday before the opening of the stock market the second quarter earnings season for the major American banks.
If the first saw its profits weighted by the money put aside to face the unpaid potential of its customers, the second, on the other hand, generated record revenues and profits thanks to its intense activity on the financial markets and in banking. investment.
The pharmaceutical and hygiene products group Johnson & Johnson (+ 0.67%), launched in the race for the vaccine against Covid-19, for its part saw its results drop in the second quarter because of the pandemic, but revised its objectives slightly higher.
Market players are now looking to other sectors, whose big names must report on their quarterly health check, starting with technology stocks.
According to Art Hogan of National Securities, “it is unlikely that the tech will achieve extraordinary performances in the second quarter because expectations were disproportionate” after the very good stock market performance of the sector during the Covid-19 pandemic.
As if to confirm this intuition, the action of Netflix tumbled more than 10% in electronic exchanges after the close, while the streaming giant posted less good profits than expected between April and June.
Twitter survey
Statistics on the health of the US economy released on Thursday were mixed.
The number of new weekly unemployed workers in the United States remained almost stable with 1.3 million people who registered between July 5 and 11. And according to published data with a week’s lag, the total number of benefit recipients was also down slightly: 17.3 million Americans were receiving unemployment benefits during the week ended July 4.
Retail sales in the United States rose 7.5% in the United States in June, advancing for the second month in a row after three months of decline due to containment measures.
On the bond market, the 10-year rate on the American debt fell to 0.6190% around 4.45pm, against 0.6299% on Wednesday evening.
Among the other values of the day, Twitter lost 1.09%. The social network continues to investigate a massive hacking, which targeted Wednesday the accounts of many personalities, including those of Joe Biden, Bill Gates, Elon Musk, and Barack Obama, bringing back to the fore the question of the cybersecurity.
American Airlines, which warned on Wednesday that it could fire up to 25,000 workers in October, fell 7.37%.
The American airline however announced Thursday that it had entered into a strategic partnership with JetBlue (-4.50%), allowing the two companies to offer more flights to their customers from New York and Boston, an alliance that should help them bounce back after the pandemic.
Aluminum and bauxite producer Alcoa, which confirmed on Wednesday evening that it had reduced its losses in the second quarter thanks in particular to savings and an increase in its production, jumped 6.30%.
The restaurant chain Domino’s Pizza gained 1.38% after reporting results boosted by an increase in pizza consumption during the pandemic in the United States.
–
