MARKET REVIEW. The New York Stock Exchange ended in scattered order on Friday, the market finally showing hesitation after having initially reacted well to the US employment figures, on the eve of a holiday weekend (Labor Day).
The Toronto Stock Exchange jumped more than 1% on Friday, buoyed by widespread strength following the release of a gross domestic product (GDP) report, which gave the market hope that the Bank of Canada has completed its cycle of interest rate hikes.
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Stock market indices at closing
In Toronto, the S&P/TSX gained 252.74 points (+1.25%) to 20,545.36 points.
In New York, the S&P 500 took 8.11 points (+0.18%) to 4515.77 points.
The Nasdaq lost 3.15 points (-0.02%) to 14,031.81 points.
The DOW rose by 115.80 points (+0.33%) to 34,837.71 points.
The loon fell from US$0.0047 (-0.6392%) to US$0.7352.
The oil rose by US$2.38 (+2.85%) to US$86.01.
L’or earned US$0.70 (+0.04%) to US$1,966.60.
The bitcoin fell by US$17.41 (-0.05%) to US$35,020.68.
This upward surprise was tempered by the downward revision, of 110,000 jobs in total, of the June and July figures.
In addition, the unemployment rate rose to 3.8%, against 3.5% previously, its highest level for a year and a half, largely due to the arrival on the labor market of new workers. The participation rate thus rose to its highest since February 2020, i.e. before the coronavirus pandemic.
“The jobs report is consistent with our projections that the labor market will continue to slow and the (US) economy will go through a moderate recession around the end of the year,” commented Nancy Vanden Houten. , from Oxford Economics.
Initially, operators revised upwards the probability that the American central bank (Fed) would leave its rates unchanged until the end of the year, a hypothesis which pleased the market.
But over the course of the session, the enthusiasm has moderated, especially after the publication of the monthly ISM index of activity in the manufacturing sector.
For Tom Cahill, of Ventura Wealth Management, more than the basic index, which rose to 47.6 points in August against 46.4 in July, but continues to indicate a contraction in activity, investors noted the jump in the indicator of prices paid by the sector.
It came out well above that of July, but also the forecasts of economists, which may cause concern about the trajectory of inflation.
In the aftermath, bond rates, which had eased at the start of the session, rose. The yield on 10-year US government bonds thus stood at 4.17%, against 4.10% the day before closing.
As for the flagship indices of the equity market, they ran out of steam, the Nasdaq, which remained on five positive sessions in a row, even closing in the red, after taking profits on a few star stocks, such as Nvidia (NVDA, -1.71%) or Tesla (TSLA, -5,06%).
“If you’re a trader, you’ve just had a pretty good week and a three-day weekend comes up, you take some profits,” Tom Cahill deciphered.
On the eve of these three public holidays, “volumes were low,” said Maris Ogg, of Tower Bridge Advisors. Also, “some didn’t want to stay exposed” before this streak and sold out, she said.
The reputation of September, the worst month of the year on average for equities, did not help, added the analyst, on this first day of the month.
On the side, the computer manufacturer Dell (DELL) made sparks (DELL, +21,25%), after the publication of better than expected quarterly results. The Round Rock (Texas) group also reported annual forecasts higher than those of the market and insisted on its ambitions in artificial intelligence (AI).
The semiconductor specialist Broadcom (AVGO) and suffered (AVGO, -5.46%), despite results exceeding expectations. Investors were offended by the group’s forecast, seen as cautious in an AI-driven industry.
Son concurrent Intel (INTC) has, on the other hand, pulled out of the game (INTC, +4,18%)still driven by encouraging statements on Thursday from its CEO, Pat Gelsinger, that the group’s market share is up.
The laboratory Amgen (AMGN, +0,14%) rose slightly, after the announcement of an agreement with the US competition authority, the FTC, which paves the way for the acquisition of the pharmaceutical company Horizon Therapeutics (HZNP, +2,27%)announced in December, for 28 billion US dollars (B$US).
Disney (DIS) was sanctioned (DIS, -2,44%) after several of its channels were cut from the networks of cable operator Charter Communications (which has nearly 15 million cable TV subscribers), due to a lack of a broadcast tariff agreement.
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