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MARKET REVIEW. The New York Stock Exchange ended lower on Monday, marking time after two flamboyant days on Thursday and Friday, due to a lack of conviction in a market unable to find lasting momentum.
Canada’s main stock index lost nearly 190 points, weighed down by losses in information technology, utilities and energy.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX fell 189.70 points (-0.94%) to 19,921.81 points.
In New York, the S&P500 retreated 35.68 points (-0.89%) to 3,957.25 points.
the Nasdaq fell 127.11 points (-1.12%) to 11,196.22 points.
the DOW fell by 211.16 points (-0.63%) to 33,536.70 points.
the loon fell US$0.0035 (-0.4613%) to US$0.7513.
the oil fell US$3.75 (-4.22%) to US$85.21.
L‘gold closed up US$5.30 (+0.30%) at US$1,774.70.
the bitcoin raked in US$25.60 (+0.16%) to US$16,408.28.
The context
Wall Street failed to chain a third positive session after the heat stroke of Thursday and Friday, which had notably seen the Nasdaq gain more than 9% in two days.
“As there has been little news this weekend, it is normal for the market to struggle to find direction,” commented Andy Kapyrin of Regent Atlantic.
During the session, Dow Jones and S&P 500 spent some time in the green, after the speech of the vice-president of the American central bank (Fed), Lael Brainard, who explained that she envisaged a deceleration in monetary tightening “soon “.
But the thinning did not last and the three major indices of the New York market all ended quite clearly in decline.
After the end-of-week surge, the Nasdaq stalled, halted in part by the rise in bond rates. The yield on 10-year US government bonds stood at 3.86%, down from 3.81% on Friday.
As for the giant tech capitalizations, they have, for the most part, lowered the flag, like Microsoft (MSFT, -2.25% to US$241.55), Amazon (AMZN, -2.28% to US$98.49) and You’re here (TSLA, -2.56% to US$190.95).
Conversely, among the few stocks to float above were defensive stocks, that is to say stocks that are theoretically less sensitive to changes in the economic situation, such as the laboratory Merck (MRK, +2.44% to US$100.35) or the conglomerate Johnson & Johnson (JNJ, +1.57% to US$171.91).
“What I take away from last week is that investors want to buy stocks, but they need a good reason to do so,” says Andy Kapyrin. In this case, it was a lower-than-expected inflation figure released on Thursday that set Wall Street on fire.
For Nick Reece, of Merk Investments, these upheavals bear witness to a bear market rallythat is to say a short-lived uptrend that is part of a longer downward cycle.
Peter Boockvar, of Bleakley Financial Group, recalled that in October 2008, at the heart of the financial crisis, Wall Street had recorded several increases of more than 10% in a single session, before plunging again a few weeks later.
“I don’t think the movement” observed Thursday and Friday “is credible,” said Nick Reece. “The preferred path remains that of the decline.”
On the stock exchange, the implosion of the world’s second largest cryptocurrency trading platform, FTX, placed in bankruptcy filing, penalized the entire sector, from the platform Coinbase (COIN, -7.56% to US$53.22) to virtual currency “mining” companies Riot Blockchain (RIOT, -3.75% to US$5.14) and Marathon Digital Holdings (MARA, -2.56% to US$9.52).
“Other than a handful of stocks that are directly engaged in this space, like Coinbase, I don’t think there’s any contagion between the crypto universe and traditional investing, including stocks,” Andy said. Kapyrin.
The cinema chain CMA has progressed (AMC, +1.94% to US$7.34)the day after an encouraging weekend for cinema activity, marked by the 180 million dollars picked up at the North American box office by Black Panther: Wakanda Foreverthe second part of the Marvel and Disney saga.
The American Lab Opiant Pharmaceutical (OPNT, +113.83% to US$20.10) was propelled by the announcement of its takeover by the British Indivior, for around 145 million dollars.
A small player in health, Opiant made a name for himself with his drug Narcan, capable of blocking the effect of opiates in the body and thus saving a victim of an overdose.
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