Stock Market: Wall Street Ends, Wins on Bad Technicals

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MARKET OVERVIEW. The New York Stock Exchange ended significantly higher on Friday, with hopes of a Fed rate hike outweighing poor results in the technology sector.

The Toronto Stock Exchange also closed higher for a sixth straight session, despite declines in the base metals, telecoms and batteries sectors.

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Stock market indices at close

in toronto, S&P/TSX rose by 119.08 points (+0.62%) to 19,471.19 points.

In New York, S&P 500 advanced by 93.76 points (+2.46%) to 3,901.06 points.

The Nasdaq scored 309.78 points (+2.87%) to 11,102.45 points.

The DOW gained 828.52 points (+2.59%) to 32,861.80 points.

The stud retreated from $0.0019 (-0.2603%) to $0.7353.

The oil retreated from $0.76 (-0.85%) to $88.32.

L’or down $17.40 (-1.04%) to $1,648.20.

The bitcoin gained $226.88 (+1.11%) to $20,650.48.

Context

The session, like the week, was a “showdown” with “disappointing results from giant tech caps on the one hand and signs of a softening economy and growing hopes of a Fed slowdown on the other,” he said. Angelo Kourkafas from Edward Jones.

Alphabet on Tuesday, then Meta on Wednesday and finally Amazon on Thursday all surprised Wall Street unfavorably, “but the market didn’t fall too much and even eventually recovered,” said LBBW’s Karl Haeling.

“Most of the damage was confined to the technology sector and did not spread to the rest of the market,” he continued.

The analyst also noted that the financial system saw a net inflow of money into equity mutual funds this week, reflecting investors’ renewed appetite for the market.

Another strong indicator, according to Karl Haeling, the S&P 500 index crossed an important technical boundary on the rise (the average over the last 50 sessions) and did not fall.

The momentum was such Friday that even the technology sector finished in the green, Amazon acting alone as a bad student (AMZN, -6.80% to $103.41).

The US distribution giant posted a 9% drop in net profit in the third quarter and is forecasting anemic growth by its standards of between 2% and 8% year-on-year in the fourth quarter, a key period of the financial year as it includes end-of-year celebrations.

Apple (AAPL, +7.56% to US$155.74) tempered the rather bleak picture painted by the other four tech giants this week. It reported higher-than-expected revenue and profit on Thursday, 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.

For Angel Kourkafas, macroeconomic indicators of the week confirmed that the economy is in a cooling phase, especially those related to October, the latest period, such as the PMI indices, which revealed that activity in the United States is falling. -United.

Therefore, it seems “reasonable” to think that “the end of the currency tightening cycle is in sight,” according to the analyst, which makes brokers happy.

Although bond yields rebounded on Friday, they fell this week, indicating a change in investor expectations, after 12 consecutive weeks of increases, a sequence not seen in nearly 40 years.

No sign of Twitter on the site, whose listing was suspended on Friday after Elon Musk formalized the takeover. The New York Stock Exchange said it expects to delist after all shares are repurchased at $54.20 a share, slightly better than the last price of $53.70.

Tesla (TSLA)headed by Elon Musk, rose 1.52% to $228.52.

ExxonMobil (XOM, +2.93% to $110.70)which hit an all-time high in the session a day earlier, remained in the lead after posting quarterly net profit well above analysts’ expectations, even as its turnover came in below estimates.

The group took advantage of high oil and gas prices to produce the largest volume of refined products in 14 years.

Concurrent son Chevron (CVX, +1.17% to $179.98) performed even better, beating market estimates, with net profit nearly doubling year-over-year. The San Ramon Group (California) significantly multiplied its profits in international refining by six.

Carried by universal enthusiasm, Intel (INTC, +10.66% to $29.07) rose despite a decline in turnover in the third quarter and a reduction in the forecast for this year.

Colgate-Palmolive Advanced (CL, +1.93% to US$74.64), after reporting results roughly in line with expectations but marred by narrowing its margins and rising costs. In addition, the hygiene and maintenance products group has revised its forecasts for the full year slightly downwards.

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