New York Stock Exchange operators (AFP/TIMOTHY A. CLARY)
The New York Stock Exchange regained confidence on Tuesday after a volatile start to the week and ended up, digesting a new burst of corporate results and pending the publication of US inflation.
According to final results at the close, the Dow Jones index gained 1.06% to 35,462.78 points. The tech-heavy Nasdaq rose 1.28% to 14,194.46 points. The S&P 500 rose 0.84% to 4,521.54 points.
Other than rising bond yields, there was “not much of a catalyst” to explain the rally in equities after the bumpy start to the week, according to LBBW’s Karl Haeling.
“But investors are starting to think the US economy is strong enough to withstand monetary tightening from the Fed,” he added, recalling the strong US employment figures released on Friday.
Bond yields rose sharply, with those on two-year notes climbing to 1.34% from 1.29% the previous day, and those on 10-year notes coming close to crossing the 2% mark, at 1.95 %, for the first time in more than two years.
“It’s the reaction to the change in the general tone of central banks, especially after the pivot seen by the European Central Bank last week,” added Mr. Haeling.
Investors are also positioning themselves before the publication on Thursday of inflation in January in the United States (CPI index) which promises, according to analysts, to be the largest increase in consumer prices for 40 years.
Analysts polled by Bloomberg expect annual inflation to rise to 7.3% in January from 7% in December.
Eight of the eleven S&P sectors ended in the green, led by materials (+1.44%), banks (+1.40%) and consumer products (+1.36%).
At the rating, investors reacted negatively to the results of Pfizer (-2.84% to 51.70 dollars).
Despite a turnover up 95% in 2021 and a net profit more than doubled thanks to the sales of the anti-Covid-19 vaccine developed with BioNTech, the American pharmaceutical group disappointed analysts on its forecasts for 2022.
Pfizer expects a total turnover of between 98 and 102 billion dollars for this year, while analysts bet on average on 106 billion.
The title of the American graphics card maker Nvidia advanced 1.54% to 251.08 dollars, after the cancellation of its plan to take over the British manufacturer of Arm microprocessors, belonging to the Japanese Softbank. Its market cap has now surpassed Facebook’s at $627 billion.
The Japanese technology investment giant confirmed on Tuesday that it was ending the Arm sale due to “significant regulatory hurdles” to the tens of billions of dollars deal.
Softbank plans to relist Arm instead by the end of March 2023.
Meta (Facebook) continued to evolve in negative territory (-2.10% to 220.18 dollars), while one of its early investors, Peter Thiel, co-founder of PayPal, largest shareholder of Palantir and support displayed by Donald Trump, announced he was leaving Meta’s board of directors.
The title of Mark Zuckerberg’s group has lost 33% since the start of the year.
A radical change in management and drastic cuts in the workforce at the manufacturer of intelligent exercise bikes Peloton were welcomed on the stock market.
The title climbed 25.28% to 37.27 dollars, while the co-founder and leader of the group John Foley will be replaced on Wednesday by Barry McCarthy, former chief financial officer of Spotify and Netflix.
To reduce its costs, Peloton will cut 2,800 jobs worldwide, or around 20% of the group’s administrative positions.
Among the major beneficiaries of confinement at the start of the pandemic, the New York group has markedly stalled for several months, faced with a marked slowdown in demand with the lifting of health restrictions.
Peloton suffered a net loss of $439.4 million from October to December, the period corresponding to the 2nd quarter of its staggered fiscal year. For a year, the title has sunk by 75%.
© 2022 AFP
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