Operators of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange ended higher on Tuesday, confirming its rebound thanks to a series of good company results as well as an indicator showing a deceleration of the American economy.
The Dow Jones rose 0.69%, the Nasdaq index gained 1.59% and the broader S&P 500 index rose 1.20%.
After last week’s correction, the indices were ready to regain altitude, estimates Kurt Spieler of FNBO.
“Company publications also brought a positive note, which relieved the market,” he continued.
Among the many results of the day, the defense sector particularly shone.
Lockheed Martin (-0.27%) exceeded expectations in the first quarter, in particular thanks to its missile division as well as sales of its F-35 fighters.
RTX also performed better than expected (-0.18%), supported by strong demand for its Patriot GEM-T anti-missile systems, the effectiveness of which was recently demonstrated during Iran’s air offensive against Israel.
Same story with GE Aerospace (+8.28%), which is now sailing alone after GE separately listed its energy (GE Vernova) and health (GE HealthCare) activities on the stock market.
The group saw its orders take off by 34% in its defense and propulsion division, and its turnover increased by 18% over one year.
For Kurt Spieler, if the American economy avoids a stall, the scenario of a rise in power of securities not belonging to the technology sector, likely to support the New York market, is credible.
That said, “technology stocks can pass muster, but they must not go through a major correction,” he warns, because they weigh too heavily on Wall Street.
Investors will have a clearer vision of the health of these tech ogres this week, with the results of Meta on Wednesday, and those of Microsoft and Alphabet on Thursday.
On Tuesday, the New York Stock Exchange also welcomed the decline in the S&P Global PMI composite index (all sectors), which stood at 50.9 in April compared to 52.0 expected by economists.
This deceleration is likely to encourage the American central bank (Fed) to lower its rates soon, especially since the price paid index, still in the PMI survey, has also fallen significantly.
On the bond market, the yield on 10-year US government bonds fell to 4.93%, compared to 4.97% the day before at closing.
Elsewhere on the stock market, the car manufacturer General Motors was also in demand (+4.37%), after reporting market share gains in the United States and raising its forecasts for the year as a whole.
Spotify soared (+11.41%), after returning to profit in the first quarter and revealing forecasts considered ambitious by analysts.
The results of the UPS messaging group were welcomed (+2.41%), the slowdown in activity being offset by cost savings, which enabled it to generate a net profit higher than projections.
The title of the Kimberly-Clark hygiene products group also advanced (+5.51%), after raising its annual forecasts.
Among the poor performers in Tuesday’s promotion, the airline JetBlue (-18.77%), engaged in a rationalization program and which has revised downwards its revenue forecasts for the current financial year.
PepsiCo also suffered (-2.97%), weakened by the decline in its volumes in the United States, under the effect of price increases.
The two American steelmakers Nucor (-8.87%) and Cleveland-Cliffs (-11.03%) were sanctioned after missing analysts’ forecasts and reporting a softening in demand for steel.
© 2024 AFP
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