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MARKET ANALYSIS. The New York Stocks ended an undecided session higher on Tuesday, with investors left waiting for an inflation gauge on Thursday.
Toronto stocks rallied slightly as its various sectors finished the session in mixed order.
To (re)consult market news
Stock market indices at close
In Toronto, the S&P/TSX rose 41.79 points (+0.21%) to 19,898.86 points.
In New York, the S&P500 rose 27.16 points (+0.70%) to 3,919.25 points.
the Nasdaq rose 106.98 points (+1.01%) to 10,742.63 points.
the DOW extension collected 186.45 points (+0.56%) at 33,704.10 points.
the crazy fell from US$0.0019 (-0.2481%) to US$0.7450.
the the oil increased by US$0.04 (+0.05%) to US$74.67.
L’gold it came in at $3.90 (+0.21%) at $1,881.70.
the bitcoins earned US$278.81 (+1.62%) to US$17,469.08.
Shares closed higher “in a subdued trading session as worries about higher interest rates persist and investors look to inflation data expected later this year,” Schwab analysts commented.
The consumer price index (CPI) for December in the US will be released on Thursday. Analysts expect prices to stagnate during the month and slow over a year to 6.5% from 7.1% in November over a twelve month period, which would bode well for equities.
“Investors are standing by,” said Art Hogan of B. Riley Wealth Management.
They listened to a speech by the head of the Fed on Tuesday in Stockholm (Sweden) on central bank independence, in which Jerome Powell once again acknowledged that “restoring price stability […] it may require measures that are not popular in the short term” by raising interest rates “to slow the economy”.
“It’s not like he brought anything new, but he reiterated what he said in last week’s Fed meeting minutes,” Art Hogan explained. The Fed “wants to take key rates to 5%, or even just above and leave them there for a while,” but “the market fears they will stay at this level for too long” and depress the economy, according to the analyst.
After inflation on Thursday, corporate earnings season will kick off on Friday with banks’ earnings “of a mixed nature,” Art Hogan promises.
But overall, he said, 70% of S&P 500 companies will report better-than-expected results in the fourth quarter. On the other hand, “I suspect we will have more negative forecasts for 2023,” she warned.
On the odds, the action of the cryptocurrency exchange platform Coin basis was welcomed (COIN, +12.96% to $43.23), as the company will cut costs by shedding 950 employees, or just over 20% of its workforce.
The company cites the decline in virtual currencies and the impact of routing “unscrupulous players,” pointing to setbacks from its rival FTX.
Coinbase, which has 4,700 employees worldwide, had already cut 18% of its workforce last June, experiencing other shocks to the cryptocurrency market at the time.
The title of the Home Goods channel Bath to bed and beyondon the verge of bankruptcy, jumped (BBBY, +27.78% to US$2.07) after announcing a plan to cut expenses during the presentation of its quarterly losses, including an unknown number of job cuts.
The chain saw its sales fall 33% and posted a net loss of $393 million versus $276 million a year earlier.
The media and television group Warner Bros. Discovery (WBD) benefited from an agreement signed with SkyShowtime on European program rights. The stock gained 8.18% to $12.56.
The action of the electric vehicle manufacturer Riviano (RIVN) it fell 1.02% to 16.45 US dollars. Several of its top executives have left the company, according to press reports, while the group has missed its 25,000-vehicle production goals by 2022 by about 700 units.
Bond yields on 10-year rates increased slightly to 3.62%, after falling to a three-week low the previous day.