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MARKET REVIEW. The Toronto Stock Exchange advanced more than 200 points late Thursday morning, supported by the strength of stocks in the base metals sector and the rise in the price of crude oil, while the major American indices also advanced.
The New York Stock Exchange opened higher on Thursday, rather satisfied with the flurry of indicators published before the opening, which demonstrated the firmness of consumption in the United States, but also persistent inflation.
To (re)consult market news
Stock market indices at noon
In Toronto, the S&P/TSX takes 218.61 points (+1.09%) to 20,497.55 points.
In New York, the S&P 500 rises 31.22 points (+0.7%) to 4498.66 points.
THE Nasdaq advances 85.82 points (+0.62%) to 13,899.41 points.
THE DOW takes 255.99 points (+0.74%) to 34,831.52 points.
THE loon East in equilibrium at US$0.74.
THE oil increase of US$1.35 (+1.53%) to US$89.87.
L’gold lost US$3.40 (-0.18%) to US$1929.10.
THE bitcoin rises from US$585.93 (+2.23%) to US$26,790.67.
Context
Retail sales in the United States in August climbed 0.6% over one month, much more than the 0.1% that economists predicted, a jump mainly attributable to the surge in oil prices.
Excluding energy, automobiles, construction and food, consumption, retail sales increased by 0.1%, compared to an anticipated contraction of 0.1%.
Even if the pace has slowed compared to July (+0.7%) and June (+0.5%), “the spending trend in the third quarter remains positive and we expect that consumption will support growth” on these three months, commented Rubeela Farooqi of High Frequency Economics in a note.
On the jobs side, new unemployment claims only increased slightly last week, to 220,000, compared to 225,000 anticipated. “There is no sign that companies are laying off workers in numbers in response to monetary tightening,” said Rubeela Farooqi.
The downside came from the producer price index PPI, or wholesale prices, up 0.7% over one month, more than the 0.4% expected by economists.
However, the index excluding energy and food only reached 0.2%, like the previous month and in line with forecasts.
For Matthew Martin of Oxford Economics, members of the monetary policy committee of the American central bank (Fed) “should not draw conclusions from a single month’s data” and choose the status quo of key rates during their next meeting on September 19 and 20.
“The market is getting used to the idea that the Fed is not going to raise rates on September 20, but also that it is very close to concluding its tightening cycle,” according to Quincy Krosby of LPL Financial, which justifies the positive direction of the indices, Thursday, in the first exchanges.
Wall Street had its eyes fixed on the title of the semiconductor designer Arm (ARM) for its first day of trading. The actual listing of the title was not expected until later, the time for operators to build an order book and define a price.
On Wednesday evening, the British group set the initial price of its shares at $51, the upper limit of the previously announced range, between $47 and $51, which values the group a little above $52 billion. and 54.5 billion including shares allocated to employees and managers.
This IPO is a major test for the IPO market, which has been in hibernation for almost two years.
On the bond market, rates rose slightly, after having initially relaxed. The yield on two-year US government bonds stood at 5.00%, compared to 4.96% at Wednesday’s close.
Is popular, HP (HPE) fell (-3.15%) after the publication of a stock market document indicating that Berkshire Hathaway, the holding company led by Warren Buffett, sold some 5.5 million shares of the computer manufacturer, of which it nevertheless still retains 115 million shares.
Starbucks dropped 0.62%, the day after the announcement, after the stock market, of the departure of emblematic manager Howard Schultz, who will leave the board of directors. The 70-year-old entrepreneur had already been replaced as general manager by Laxman Narasimhan in March.
A few hours before a possible strike by employees who are members of the large union UAW (United Auto Workers), General Motors (GM-1.60%) and Ford (F,-1.27%) suffered the blow.
After American Airlines (AAL) And Spirit Airlines (SAVE) Wednesday, Delta (DAL-0.44%) in turn issued a profit warning on Thursday due to the increase in the price of kerosene.
