The New York Stock Exchange opened higher on Friday, resisting the false note from Amazon, whose results disappointed, and showing a strength that pleases investors.
Around 14:30 GMT, the Dow Jones gained 1.60%, the Nasdaq index appreciated 1.02%, and the broader S&P 500 index gained 1.14%.
The New York market, and the Nasdaq, in particular, painlessly digested the hiccups of Amazon, which released its results Thursday after the stock market.
The American retail giant posted a 9% drop in net profit in the third quarter and expects anemic growth by its standards of between 2% and 8% yoy for the fourth quarter, a crucial period of the year. year because it includes holidays.
Amazon took the water on Friday (-9.92% to $ 99.95), like Meta, the day before, and Alphabet, two days ago, all weighed down by results and projections below the high-sounding figures they were used to. these flagships of Wall Street technology.
But most of the other major Nasdaq caps held steady, such as Microsoft (2.40%), Nvidia (+ 1.78%) or even Meta (+ 1.88%).
“The moves this week are really encouraging as we have seen a lot of negative data, bad surprises and the market has still remained bullish,” commented Maris Ogg, of Tower Bridge Associates.
“It shows that people have considered the prospects” of a slowing economy, he said. “So unless the forecasts really deteriorate, the worst could be behind us” on Wall Street.
The Dow Jones was therefore heading towards a sixth consecutive session of gains.
“There is still a lot of risk appetite,” said Jack Ablin of Cresset Capital.
Apple (+ 6.87% to $ 154.74) mitigated the rather bleak picture painted by the other four tech giants this week. Thursday posted higher-than-expected revenue and profits, even as iPhone sales missed the mark.
Unlike its competitors, the apple group also maintained its margins and showed cautious optimism for the current quarter.
Traders reacted relatively little to the release of the PCE price index, closely followed by the Fed.
Inflation hit 6.2% in September over a year in the United States, in line with economists’ forecasts.
For Oren Klachkin, of Oxford Economics, the indicator only confirmed that “inflation was too high for the Fed and we believe the milestones are set for a key rate hike of 0.75 percentage points. In November, followed suit. from half a point in December. “
“Investors are trying to convince themselves that we have found a floor” for equity markets, on which to bounce, sentiment supported, in part, “on the belief that the Fed (US central bank) may end in the second quarter” 2023 with its monetary tightening cycle.
Therefore, if traders still see the Fed’s key rate approaching or even exceeding 5% by spring, they are now counting on one or even two rate cuts by the end of 2023, a minority scenario there is still a week.
After several weeks of sudden movements, bond rates have again moved within relatively tight margins. The yield on 10-year US government bonds stood at 3.98%, up from 3.91% the day before.
On the side, no trace of Twitter, whose listing was suspended on Friday after the formalization of the acquisition by Elon Musk and a probable imminent exit from the side.
ExxonMobil (+ 1.65% to $ 109.32), which had already hit an all-time high in yesterday’s session, remained at the forefront after posting a quarterly net profit well above analysts’ expectations, even if its turnover was below forecasts.
The group took advantage of high oil and gas prices and produced the largest volume of refined products in 14 years.
Its competitor Chevron (+ 0.56% at $ 178.89) did even better, beating market estimates, with net income nearly doubling in one year. The San Ramon (California) group has significantly multiplied its profits in international refining by six.
Colgate-Palmolive advanced (+ 1.28% to 74.17 dollars) after reporting results substantially in line with expectations, but characterized by a compression of margins and an increase in costs. The group of products for hygiene and maintenance also slightly lowered the forecasts for the whole year.