(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange ended in mixed order on Wednesday, with the Dow Jones benefiting from a rotation towards neglected values, in a wait-and-see market, due to lack of major news.
Shares of tech heavyweight Shopify fell nearly 19%, weighing on Canada’s main stock index.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX fell -31.46 points (-0.14%) to 22,259.16 points.
In New York, the S&P 500 lost -0.03 points (-0.00%) to 5,187.67 points.
THE Nasdaq dropped -29.80 points (-0.18%) to 16,302.76 points.
THE DOW rose by +172.13 points (+0.44%) to 39,056.39 points.
THE loon closed up +US$0.0002 (+0.0299%) to US$0.7289.
THE oil collected +US$0.84 (+1.07%) to US$79.22.
L’gold fell -US$8.10 (-0.35%) to US$2,316.10.
THE bitcoin fell by -US$1,583.34 (-2.51%) to US$61,460.38.
The context
In the absence of major indicators on the menu, “there is not much economic news to get your teeth into,” observes Jack Ablin of Cresset Capital. “It’s a quiet week, but the market remains on an upward trend.”
A sign of the low volatility on Wall Street, the VIX index, which measures operators’ anxiety, fell to its lowest level in six weeks.
The New York market was counting on company results to regain momentum, but the quarterly accounts have so far sparked mixed reactions.
“Companies managed to exceed expectations, but their forecasts for the entire financial year have not changed much,” emphasizes Jack Ablin. “Profits are not growing much.”
The bond market contributed to the general lack of enthusiasm, with renewed tension in rates. The yield on 10-year US government bonds stood at 4.49%, compared to 4.45% the day before at the close.
The Dow Jones benefited from cheap purchases to end up in the green, while the Nasdaq was weighed down by You’re here (TSLA, -1.74% to US$174.72), Alphabet (GOOG, -1.05% to US$171.16) or PayPal (PYPL, -3.20% to US$63.81).
Manhandled for weeks, Boeing was one of the elected officials (BA, +2.06% to US$180.35), as IBM (IBM, +0.90% to US$169.90) or Honeywell (HON, +0.61% to US$198.05).
“The somewhat neglected names are starting to stand out, as investors position themselves while waiting for rate cuts and hunt for good deals,” according to Mr. Ablin.
Beyond the Dow Jones, Kyndryl (KD, +27.83% to US$26.55), which brings together the former consulting and maintenance activities of IBM and HP (HPQ, +3.63% to US$29.44) also made a catch-up.
Among the bad students of the day, Uber (UBER, -5.72% at US$66.40), which published a loss greater than projected by the market, due, essentially, to depreciation of participations, unrelated to the group’s activity .
The turnover forecast for the current quarter also appeared moderate compared to that of analysts.
You’re here also fell (TSLA, -1.74% to US$174.72), after the announcement on Tuesday of an 18% drop in its sales in China in April compared to the same period of the last year.
Wall Street trampled the online trading platform Shopify (SHOP, -18.59% to US$62.73), whose results were nevertheless higher than the expectations of the FactSet consensus, but which published a loss and announced that it expected a deterioration in its margins for the quarter in course.
Another target of investors, the hotel reservation platform Tripadvisor (TRIP) plunged 28.73% to US$18.16. The group reported a greater loss than investors expected and indicated that the committee responsible for identifying a possible buyer had failed.
After its first publication since its IPO at the end of March, the social network Reddit (RDDT, +4.05% to US$51.40), the turnover having surprised favorably, even if the losses widened and reached more than double the income.
Taking the opposite view from its rival Uber, Lyft did well (LYFT, +7.11% to US$17.78), after exceeding expectations and announcing more ambitious forecasts than expected, driven by strong demand.
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