The New York Stock Exchange recovered at the end of the session on Friday to return to records during a checkered day, disrupted by disappointing results from big names in “tech”.
According to final results at the close, the Dow Jones index advanced 0.25% to 35,819.56 points. The Nasdaq, with strong technological coloring, gained 0.33% to 15.498.39 points, a new record after that of the day before, just like for the S&P 500, at 4,605.38 points (+ 0.19%).
“The market was going in all directions today,” commented Peter Cardillo of Spartan Capital Securities. “He opened lower, disappointed with the results of Amazon and Apple,” which are among the largest valuations in the stock market.
At the low of the session, the title of Amazon lost more than 3.50% and that of Apple nearly 4% before regaining ground, only dropping at the close only 1.82% to 149.80 dollars for the maker of iPhones and 2.15% to 3,372.43 dollars for the group of Jeff Bezos.
The two groups, which are battling with the difficulties of supply chains, had announced the day before disappointing results in the eyes of analysts.
As supply and delivery issues hamper businesses and drive up prices, as reported by groups like Colgate-Palmolive (-0.92%), investors have also been on the lookout for inflation.
“We have had many indicators. Consumer spending has held up well, their income has fallen but above all the PCE inflation indicator has accelerated and yet the market does not seem to care for the moment”, a underlined Mr. Cardillo.
The PCE index, a barometer of price increases for the American Central Bank (Fed), which had stabilized in August over one year, again accelerated in September, to 4.4%, the highest since January 1991.
To this must be added the employment cost index for the third quarter, which climbed 1.3%. Year on year, this represents an increase in wages, salaries and benefits of 3.7%, the largest annual increase since 2004.
– Dollar rising –
This inflation data has caused the dollar to jump against the euro, as the US Central Bank (Fed) meets next week to presumably announce the reduction in its liquidity injections, as the ECB maintains its policy more flexible monetary policy.
Bond rates nonetheless eased on 10-year Treasury bills to 1.55%.
The session was also supported by the good performance of the oil group Chevron (+ 1.21% to 114.49 dollars) which recorded better quarterly results than expected, driven by the rebound in oil and gas prices.
Tesla posted an all-time high of $ 1,114 (+ 3.43%).
Microsoft (+ 2.24% to 331.62 dollars) narrowly dethroned Apple as the number one market capitalization on Wall Street. The software giant weighed at the closing 2.489 billion dollars against 2.457 billion for the giant at the apple.
Finally “the market has overcome the initial pressure and by finishing slightly higher, the S&P 500 recorded its best month since November 2020”, the best month of the year so far, summarized analysts at Schwab.
The extended S&P 500 index, more representative of the US market, crossed the 4,600 point mark for the first time. And this month is the best October since 2015 for indices, according to analysts.
The title of the Starbucks coffee chain plunged 6.30% to 106.07 dollars after announcing disappointing sales.