On the New York Stock Exchange, September 6, 2022 (GETTY IMAGES NORTH AMERICA/AFP/Archives/Michael M. Santiago)
The New York Stock Exchange opened higher on Friday, buoyed by the momentum of the previous two sessions, which ended in the green, in a market that has digested the prospect of ever-accelerating monetary tightening.
Around 2:00 p.m. GMT, the Dow Jones gained 0.66%, the Nasdaq index took 1.42% and the broader S&P 500 index, 0.95%.
“The continuation of the momentum” that drove the indexes higher on Wednesday and Thursday “is a significant strength this morning,” Patrick O’Hare of Briefing.com observed in a note.
For the analyst, the market’s ability to resist the selling trend of recent weeks is fueling the feeling that Wall Street has now integrated the pursuit of a proactive monetary policy over the coming months.
“After such a pullback (the S&P 500 had lost almost 10% since mid-August), it is perfectly normal and healthy to see the market rebound,” argued Adam Sarhan, of 50 Park Investments, for whom the movement is essentially technical.
The manager nevertheless notes that volumes have been limited since the beginning of the inflection on Wednesday, and that institutional investors are slow to re-engage.
At the opening, the S&P 500 index rose above an important technical threshold, namely the average of the last 50 trading days. “But what really interests me,” tempered Adam Sarhan, “is to see if the indices can close above this threshold.”
Beyond that, other thresholds would appear in New York, mainly the average of the last 200 sessions and the summer peak of August 16. “As long as we are below, by definition, the trend remains downward,” insists Adam Sarhan. “We still have a lot of work to do.”
Sign of a certain range of investors, a little bolder than in recent weeks, the VIX index, which measures market volatility, fell Friday to its lowest level in two weeks.
Risk appetite benefited cryptocurrencies, after a sluggish month of August, as well as sector stocks, including Coinbase (+6.73%) and Riot Blockchain (+7.78%).
Another illustration of a somewhat more serene market, bond rates stabilized after several roller coaster days. The yield on 10-year US government bonds stood at 3.30%, against 3.31% the day before.
No major indicator is expected before the publication on Tuesday of the CPI price index for August, which will provide information on the trajectory of inflation in the United States, which economists see decelerating.
On the side, the Tapestry holding company, which notably controls the ready-to-wear brands Kate Spade and Coach, was in verve (+ 1.74% to 35.18 dollars) after having unveiled three-year objectives, which provide for a turnover of 8 billion dollars in 2025, which would represent an increase of nearly 20%.
Another action at the party, that of the supermarket chain Kroger (+ 1.41% to 49.04 dollars), which published Friday a turnover and a profit higher than expectations, but also raised its objectives for the whole exercise. The group was able to count on the development of its online activity.
The specialist in electronic signature documents and contracts DocuSign was also sought after (+8.89% to 63.10 dollars), with results that exceeded expectations.
The rebound in the prices of black gold and several metals after weeks of depression benefited oil stocks such as EOG Resources (+2.83%) or Marathon Oil (+1.91%), as well as the a mining Freeport-McMoRan (+3.32%) or the steelmaker US Steel (2.22%).
The space tourism company Virgin Galactic suffered (-4.78% to 5.98 dollars) from a lowering of the recommendation of the management company Bernstein, which is concerned about postponements of commissioning deadlines and a possible lack of cash.
The Regeneron laboratory was still advancing (+6.07% to 751.84 dollars), after a gain of nearly 19% on Thursday, stimulated by the publication of encouraging clinical results for its treatment against eye diseases, Eylea.
© 2022 AFP
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