The New York Stock Exchange ended sharply higher on Friday, with hopes of an inflection from the US central bank (Fed) outweighing poor results from the technology sector.  ;
The Dow Jones gained 2.59%, the Nasdaq index gained 2.87% and the broader S&P 500 index gained 2.46%.
The session, like the week, was “a standoff”, with “on the one hand, the disappointing results of the giant Tech caps and, on the other, the signs of an economy which is softening and growing hopes of a Fed deceleration,” said Angelo Kourkafas of Edward Jones.
Alphabet on Tuesday, then Meta on Wednesday, and finally Amazon on Thursday all surprised Wall Street unfavourably, “but the market didn't go down much, and even ended up recovering,” 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 had seen net inflows of money into equity investment funds this week, indicating a renewed appetite among investors for this market.
Another strong marker, according to Karl Haeling, the S&P 500 crossed, on the rise, an important technical threshold (the average over the last 50 sessions) and has not come down.
The Momentum was such on Friday that even the technology sector ended in the green, Amazon being the only bad student (-6.80% to 103.41 dollars).
The American distribution giant recorded a 9% drop in net profit in the third quarter and forecasts anemic growth for its standards, between 2% and 8% year on year in the fourth quarter, a crucial period of the financial year, because it includes the end of year celebrations.
Apple (+7.56% to 155.74 dollars) has toned down the rather gloomy picture painted by the four other Tech giants this week. It posted higher revenue and profit on Thursday than analysts had predicted, even as iPhone sales missed the mark.
Unlike its competitors, the apple group also preserved its margins and showed cautious optimism for the current quarter.
For Angelo Kourkafas, the macroeconomic indicators of the week confirmed that the economy was in a cooling phase, especially those relating to October, the most recent period, such as the PMI indices which revealed that activity was contracting in the United States.
Therefore, it seems “reasonable” to think that “the end of the monetary tightening cycle is in sight”, according to the analyst, which delights brokers.
Although having rebounded on Friday, the Bond yields fell this week, signaling a shift in investor expectations, after 12 consecutive weeks of increases, a streak not seen in nearly 40 years.
On the side, no trace of Twitter, whose listing was suspended on Friday after the formalization of the takeover by Elon Musk. The New York Stock Exchange has indicated that it expects to delist after all shares are redeemed at a price of $54.20 per share, slightly better than the last price ($53.70).
Tesla, headed by Elon Musk, rose 1.52% to $228.52.
ExxonMobil (+ 2.93% to 110.70 dollars), which had already reached its historic record in session the day before, remained at the forefront after the publication of a quarterly net profit well above analysts' expectations, even if its turnover came out below forecasts.
The group took advantage of high oil and gas prices, and produced its largest volume of refined products for 14 years.
Its competitor Chevron (+1.17% to 179.98 dollars) did even better, smashing market estimates, with net profit almost doubled over one year. The group of San Ramon (California) notably multiplied by six its profits in international refining.
Buoyed by general enthusiasm, Intel (+10.66% to 29.07 dollars) soared despite falling third-quarter revenue and lowering its full-year guidance.
Colgate-Palmolive advanced (+1.93% to 74.64 dollars), after announcing results broadly in line with expectations, but marked by a compression of its margins and an increase in its costs. The hygiene and maintenance products group has also slightly lowered its forecast for the full year.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128