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MARKET ANALYSIS. The New York Stock Exchange closed its first session of 2023 in the red, continuing the gloomy trend of the end of the previous year, weighed down in particular on Tuesday by the decline in Tesla and Apple shares..
The Toronto Stock Exchange closed the first session of the year up 0.3% as losses in the energy sector were offset by gains in several other sectors.
To (re)consult market news
Stock indexes at close
In Toronto, the S&P/TSX gained 58.85 points (+0.30%) to 19,443.77 points.
In New York, the S&P500 it fell 15.36 points (-0.40%) to 3,824.14 points.
the Nasdaq it fell 79.50 points (-0.76%) to 10,386.98 points.
the DOW extension it fell 10.88 points (-0.03%) to 33,136.37 points.
the crazy fell from USD 0.0054 (-0.7315%) to USD 0.7315.
the the oil it closed down US$3.14 (-3.91%) at US$77.12.
L’gold increased by US$18.90 (+1.03%) to US$1,845.10.
the bitcoins fell by US$65.10 (-0.39%) to US$16,670.96.
Wall Street had briefly started the session higher after a long New Year’s weekend, looking set to recover from the worst year since 2008 for the stock market.
But equities failed to maintain this positive momentum, “since the restrictive policy” of the US central bank (Fed) “and fears of recession remained at the heart of investors’ concerns,” said Edward Moya, analyst at ‘Oanda.
Bargain hunting, motivated at the start of the session by the low share price, has failed and “it is too early to start betting on a change in the Fed’s attitude this year”, continued the analyst. “It will make the environment difficult for equities” at the start of the year, she added.
Bond rates, which had ended 2022 at 3.87% for 10-year US Treasuries, fell sharply to 3.76% as of 4:30pm.
The sombre mood of the traders focused on the action Tesla (TSLA)which dropped sharply again to reach a new low since August 2020.
Shares of the electric vehicle maker, which already fell 65% last year, lost another 12.24% to close at $108.10.
The action was harshly punished as the Elon Musk-led group announced disappointing deliveries for the full year last year on Monday.
The brand delivered 1.31 million EVs in 2022, a record and a 40% year-on-year increase, but falls short of its own forecasts and Wall Street expectations.
“The fourth-quarter figures missed the mark due to continued logistics issues, demand concerns and increased competition from other manufacturers,” Schwab analysts said.
In the last quarter alone, deliveries stood at 405,000 vehicles (+18%), while analysts expected 418,000.
A JPMorgan analyst further downgraded his earnings projections for the latest quarter and full year 2023, further depressing the stock.
Apple (AAPL) it also made a bad impression, beating the Nasdaq, while the apple company’s shares fell by 3.74% to 125.07 US dollars.
Suddenly, the valuation of this tech mega-cap, which had exceeded $3 trillion in early 2022, has dropped below $2 trillion for the first time since last May. The stock meanwhile is at its lowest since June 2021.
Apple seems to be facing delays in the delivery of its iPhone 14 Pro made in China.
Investors are also concerned about rising interest rates, which could weigh on the producer’s cost of investment.
Most S&P sectors closed in the red, led by energy (-3.62%) which followed sharp declines in crude oil prices, on concerns over energy demand around the world as the spread of COVID-19 puts China’s economic reopening at risk.
Saved up, the communications sector is on the rise, notably a jump of 3.66% to US$124.74 from Half and half)the parent company of Facebook.
Wednesday, the conglomerate General Electric (GE) will ratify the demerger of its GE HealthCare healthcare arm and IPO.
Investors will also be eyeing the minutes of the latest Fed monetary meeting.