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MARKET REVIEW. The strength of utility and telecommunications stocks allowed the main Canadian stock index to advance late in the morning, while American stock markets also rose.
The New York Stock Exchange opened in the green on Monday, continuing last week’s momentum that was driven by a rebound in technology.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX advanced +37.52 points (+0.17%) to 22,006.76 points.
In New York, the S&P 500 posted an increase of +12.21 points (+0.24%) to 5112.17 points.
THE Nasdaq gained +42.40 points (+0.27%) to 15,970.30 points.
THE DOW increased by +73.41 points (+0.19%) to 38,313.07 points.
THE loon collected +US$0.0009 (+0.1238%) to US$0.7325.
THE oil fell -US$0.86 (-1.03%) to US$82.99.
L’gold gained +US$1.90 (+0.08%) to US$2,349.10.
THE bitcoin fell by -US$539.89 (-0.85%) to US$62,982.64.
Context
“Last week was a good week for the stock market. In fact, this was the best week for the S&P 500 and Nasdaq since November,” noted Patrick O’Hare of Briefing.com.
The S&P 500 posted a weekly gain of 2.7% ending at 5,099.96 points on Friday. The Nasdaq climbed 4.2% to 15,927.90 points and the Dow Jones rose 0.7% over the week to 38,239.66 points.
The driving force behind this progress was the favorable reception given to the results of Tesla, Alphabet and Microsoft in particular.
This week will be dominated by the macro-economy with the monetary meeting of the Federal Reserve (Fed) which will publish a press release on Wednesday. The market does not expect a rate cut given the persistence of inflation last month (+2.7% over twelve months, according to the PCE index).
This press release “will be dissected to discern changes in language when, according to futures products, there is a 97% probability that the Fed will keep rates at this level,” commented Art Hogan of B. Riley Wealth management.
“Chairman Jerome Powell’s press conference will be closely monitored for any clues indicating when the Fed will begin its cycle of rate cuts,” the analyst further indicated.
Investors will also watch for official employment figures on Friday.
On the bond market, ten-year rates gave up a little ground to 4.64% instead of 4.66%.
The week will also be busy with company results, particularly in the tech sector with Amazon (AMZN, +0.05%) expected Tuesday and Apple (AAPL, +3.86%) scheduled for Thursday after the markets close.
You’re here (TSLA) soared 10.55% to 185 US dollars ($US) to its highest level in two months, after the electric car manufacturer’s boss Elon Musk achieved success in China by obtaining a regulatory green light from the Chinese authorities regarding the security of vehicle data.
During a whirlwind visit to Beijing, Elon Musk notably met Prime Minister Li Qiang, with the ambition of consolidating the popularity of his cars in the country, which must compete with fierce local competition.
The action Meta (Facebook, Instagram) continued to decline (META, -1.93%) on the downward slope since the announcement of its results on Thursday.
Even though the first quarter accounts exceeded expectations with a 27% jump in turnover, investors were cooled by the volume of investments announced in AI, i.e. up to 40 billion US dollars.
Among other results, the pizza seller Domino’s (DPZ, +3.43%) was appreciated after the announcement of sales up 22% for the first three months of the year, boosted by deliveries to the American market.
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