Dow +0.08%, S&P 500 +0.13%, Nasdaq -0.10%, Russell +0.19%, -0.74%, Eurostoxx +1.19%, SMI +1.64%.
For once, Wall Street left the spotlight to old Europe yesterday, standing still while the Eurostoxx50 and others offered an increase of more than 1%, driven by tech, financials and health. The Eurostoxx50 index (SX5E) at the same time allows itself to go back above the 5,000 point mark as well as to break its 50-day moving average, a very nice day for it than yesterday. This is the third consecutive session of increase for the indices of the old continent, also driven by solid corporate results, notably those of UBS (+7.59%) and Unicredit (+3.59%). The good performance of heavyweights such as Novo Nordisk (+3.72%) also helps, the hope that the Fed will still start its cycle of rate cuts again this year as well.
Downtown Manhattan, we’re pretty bored, the volatility is decreasing again, was it possible? The technical configuration of the indices remains good, the magnificent 7 are in rather good shape, with the exception of Nvidia and Tesla. We listen to the words of Neel Kashkari, the head of the Minneapolis Fed, who thinks that the Federal Reserve could leave its rates unchanged this year. Mr. Kashkari is considered a centrist at the Fed, his words therefore have a certain weight and the yield on the US 10-year, which was trading at 4.42%, rose this morning to 4.47%. Its main support is at 4.39%, which is where its 50-day moving average is currently moving. The dollar suddenly regains timid colors, the EUR/USD pair returns to 1.0743, gold falls to 2,312 dollars per ounce and oil languishes at 77.58 dollars per barrel of WTI Light Crude.
We take a look at internal market indicators and we see that over the last three trading sessions, advancing stocks on the NYSE have far outpaced declining stocks. For only the 32nd time since 1931, the NYSE’s advance-decline ratio exceeded the 3-to-1 threshold for three consecutive trading sessions. Adding a 200-day moving average filter to account for precedents that occurred while the S&P500 Index (SPX) was above its long-term moving average, such as today, cases fall at 14, which highlights the rarity of the event. Stock market history shows that when such a configuration arose, the SPX was up 100% of the time 3 and 6 months later. Important clarification, we are talking about history here, not predictions about the future of the index.
The criminal trial of Donald Trump, accused of mishandling classified documents, is postponed indefinitely. Separately, the judge overseeing Donald Trump’s New York bribery case rejects his request for a mistrial after his lawyer complained about the salacious details of Stormy Daniels’ testimony.
On today’s macroeconomic menu, wholesaler stocks (4:00 p.m.) and oil stocks (4:30 p.m.).
Anheuser-Busch InBev publishes rather in line with forecasts in the first quarter. Arista gained 6% ex-session after its first quarter. BMW reports a decline in automotive margin in the first quarter due to continued high costs. Lyft gained 6% off-day after its first quarter. Reddit soars 17% outside the session after its results. Toyota reports 78% increase in operating profit in fiscal fourth quarter. AstraZeneca is withdrawing its COVID-19 vaccine from the global market, according to the Telegraph. Moody’s upgraded Novo Nordisk’s A1 credit outlook from stable to positive. Suzano is preparing a $15 billion bid for International Paper, according to multiple sources. Apple launches new tablets and a new chip. Microsoft, Nvidia, Softbank invest in Wayve Technologies’ Series C round for $1.05 billion.
This night and this morning in Asia, the indices are trading in scattered order. Tokyo fell 1.63% at the bell, Hong Kong lost 0.73%, Shanghai lost 0.61%, Seoul rose 0.39% and the Nifty50 gained 0.05%. The future SPX deals around balance and Europe opens slightly higher.
This weekend should be calm, many speakers will be working on the Ascension Bridge.
Return of market news Monday May 13.
