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MARKET REVIEW. The New York Stock Exchange ended up on Monday, bathed in a lighter atmosphere, marked by a return of appetite for risk, which benefited volatile stocks.
Broad strength on the Toronto Stock Exchange, fueled by the base metals, financials and information technology sectors, allowed it to close higher.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX increase of 108.11 points (+0.54%) to 20,182.76 points.
In New York, the S&P 500 gained 29.97 points (+0.67%) to 4,487.46 points.
THE Nasdaq rose by 156.37 points (+1.14%) to 13,917.89 points.
THE DOW increase of 87.13 points (+0.25%) to 34,663.72 points.
THE oil lost US$0.22 (-0.25%) to US$87.29.
L’gold rises by US$2.80 (+0.14%) to US$1,945.50.
THE bitcoin lost US$740.37 (-2.87%) to US$25,081.51.
The context
The session was put on the right track by a note from Morgan Stanley on Tesla (TSLA).
The bank’s analysts estimate that the Dojo supercomputer, developed by the manufacturer to improve its autonomous driving software, could add more than $500 billion to the company’s value, and have raised their price target by 60% .
Tesla CEO Elon Musk announced in June that the firm planned to invest $1 billion in the project by next year.
The manufacturer’s shares, whose value has already doubled since the start of the year, rose 10.09% to US$273.58 on Monday.
The increase in recommendation “certainly” helped the indices, according to Jack Ablin of Cresset Capital, who also noted the rebound of the Shanghai Stock Exchange, which had been suffering for several days.
For the analyst, operators “have taken a fresh look at China”, after weeks of worrying about a sluggish economy, far from the expected recovery coming out of the pandemic. The market “feels that (the Chinese government) is trying to stimulate growth and investment.”
More generally, “it was a day favorable to risk and investors went to tap into the most speculative corners of the market”, according to Jack Ablin, partly also motivated by the prospect of a few good deals.
Several giant technological capitalizations, such as Amazon (AMZN, +3.52% to US$143.10) or Meta (META, +3.25% to US$307.56), rode the wave, as did much more volatile values, such as BlackBerry (BB, +14.47% to US$5.22) or Rivian (RIVN, +1.34% to US$23.41).
The New York market also welcomed Qualcomm (QCOM, +3.90% to US$110.28), driven by a new three-year supply contract to Apple for its new modems intended to optimize the performance of the 5G network, which will be integrated into iPhones.
RTX (formerly Raytheon) was one of a few stocks to finish significantly in the red (RTX, -7.88% at US$76.90) after reporting an exceptional charge of $3 billion in the third quarter related to defect in an engine component from its subsidiary Pratt & Whitney, which will require the inspection of 600 to 700 additional units by 2026.
Disney (DIS, +1.15% to US$82.52) was sought after the announcement of a broadcast agreement with the cable operator Charter Communications, which claims nearly 15 million cable subscribers in the United States. United. The entertainment giant had suspended the broadcast of its group’s channels, in particular ESPN (sport), for ten days.
Pfizer (PFE, -0.91% to US$33.94) and Moderna (MRNA, -1.71% to US$105.80) did not take advantage of the green light from American health authorities to place on the market an updated version of anti-COVID vaccines, which better protects against the most virulent variants in circulation.
The bond market saw little activity after a turbulent week. The yield on ten-year US government bonds increased slightly to 4.29%, compared to 4.26% at Friday’s close.
