Wall Street continues in the green after already eleven positive sessions

The New York Stock Exchange was in the green on Tuesday at the start of a busy day in corporate results and on the eve of a monetary decision by the American central bank.

After eleven positive sessions, the Dow Jones index rose 0.05% around 2:20 p.m. GMT while the S&P 500 advanced 0.20%. Pending results from Microsoft and Alphabet after the close, the tech-heavy Nasdaq gained 0.55%.

The day before, the flagship index of the New York market had risen by 0.52%, the broader Nasdaq index had gained 0.19% and the broader S&P 500 index had taken 0.40%.

“The tone is on the upside following strong results from a host of blue chip companies since Monday’s close, coupled with gains in mega-cap stocks and a positive reaction from Chinese markets following the announcement of economic support measures in China,” summarized Patrick O’Hare of Briefing.com.

General Motors yielded 2.20% despite an increase in its results in the second quarter, which prompted it to once again raise its forecasts for the whole of the year. The automaker is counting on an annual net profit of between 9.3 and 10.7 billion in 2023, against an anticipation of between 8.4 and 9.9 billion previously. It was 9.9 billion in 2022.

The conglomerate General Electric (GE) jumped 4.72%. Driven by activity in aeronautics in the second quarter in a context of post-pandemic air traffic recovery, GE published quarterly results that beat expectations, leading it to revise its outlook for 2023 upwards. Its division devoted to renewable energies, whose turnover jumped 24%, saw “record” orders.

The American hygiene products group Kimberly-Clark lost 2.78% after announcing an increase in its turnover, mainly supported by rising prices.

After the close, Wall Street is awaiting the results of two big rivals in so-called generative artificial intelligence, Alphabet (-0.16%) and Microsoft (+0.64%), which both ended largely in the green on Monday.

The market is also awaiting the decision of the US Federal Reserve (Fed) scheduled for Wednesday.

“After pausing rate hikes last month, Fed Chairman Jerome Powell and his colleagues are considering raising rates by a quarter of a percentage point,” recalled Art Hogan of B. Riley Wealth Management. Overnight rates should settle in the range of 5.25% to 5.50%.

Jerome Powell has repeated in recent weeks that several increases were planned, “at least two, possibly in a row” in order to tame inflation which is on the right track.

The indices finally benefited from a robust confidence barometer for American consumers in July. As measured by the Conference Board, consumer confidence climbed to a two-year high of 117 points.

On the bond market, ten-year yields stood at 3.90% against 3.87% the day before.

Add a Comment