(New York, Toronto) The New York Stock Exchange ended modestly in the red on Wednesday after the US central bank predicted interest rates would remain close to zero and ahead of the release of quarterly results from Apple and Facebook.
According to the final results, the Dow Jones, which was particularly affected by Boeing and Microsoft, fell 0.48% to 32,820.38 points. The Nasdaq fell 0.28% to 14,051.03 points and the S&P 500 lost 0.08% to 4,183.18 points.
“In general, nothing has changed,” Peter Cardillo of Spartan Capital Securities commented at the Fed’s monetary policy meeting. The central bank “remains committed to continuing to buy assets” such as Treasury bills, to support activity and cut long-term interest rates.
Jerome Powell, Chairman of the Federal Reserve, also insisted that if inflation were to accelerate just above the 2% target due to the recovery, it would be due to “temporary factors” and that should not lead to the Fed’s interest rate move.
“I still think that in the coming weeks, the debate about inflation will start to destabilize the bond market,” said Peter Cardello.
On Wednesday, the 10-year Treasury yield, which rises when there is a fear of inflation, fell to around 1.60% (-0.86%).
After the shutdown, Facebook announced nearly doubling its net earnings at 1he is A quarter of a dollar to 9.5 billion dollars. The stock, which closed up 1.16% to $ 307.10 at the close, rose 4.64% in post-close electronic trading.
Computer giant Apple is scheduled to announce its results.
Market players were also preparing to follow with interest, in the evening, Joe Biden’s speech to Congress.
The US president should present an ambitious $ 1.8 trillion plan for education and help the families he intends to finance by canceling tax cuts for the wealthy and raising taxes on capital income for wealthier Americans.
“Je pense que ces dépenses vont plutôt être bien accueillies par le marché des actions, mais pas forcément par celui des obligations”, a estimé M. Cardillo qui juge que les augmentations d’impôts sur gains financiers envisagées sont déjà prises ente market. He added, “I do not think that this exits the market or spoils the morale of the investors.”
Among the actions taken today, the “Boeing” headline influenced the decline of the Dow. The aircraft manufacturer, which has suffered from reduced air traffic since the start of the pandemic, recorded a net loss of $ 537 million in the first quarter. The movement is down 2.89% to $ 235.46.
However, the aircraft manufacturer has relied on returning 737 MAX shipments and vaccination against COVID-19 for a rebound.
Toronto is on the rise
The main index of the Toronto Stock Exchange hit a record high on Wednesday, buoyed by renewed optimism about the speed of the economic recovery, which also pushed the Canadian dollar to its highest level in more than three years.
“The energy sector was among the best performers, driven by higher crude oil prices, while the Canadian technology sector reported disproportionate gains after issuing better-than-expected results to Shopify Observed Candice Bangsund, Portfolio Manager at Fiera Capital.
The S & P / TSX Composite in Toronto rose 181.86 points to end the session at 19,356.95, after advancing earlier in the day to 19,403.54 points, the highest in its history.
The IT, health and energy sectors all rose by more than 3%.
Shopify stock jumped 11.1% to $ 1,589.47 after the Ottawa e-commerce company reported better-than-expected results for the first quarter. In particular, its revenue increased 110% in one year to 988.6 million.
The healthcare sector was buoyed by a 9% increase in Organigram Holdings’ inventory of cannabis production, and an 8.8% increase in Aphria’s inventory.
The major energy sector advanced with the rise in crude oil prices. It has accumulated gains of around 5% since Monday, buoyed by signs of an economic recovery. This growth comes despite the decision by members of the Organization of the Petroleum Exporting Countries (OPEC) to gradually increase their production, starting in May.
«Les prix du pétrole ont avancé à un sommet d’un mois après que le consortium de l’OPEP a exprimé une certaine confiance vis-a-vis des perspectives pour la demande mondiale alors que la vaccination accination accinationélere», a écrit Mme Bangsund dans e-mail.
In the currency market, the Canadian dollar traded at an average price of 80.93 US cents, up from its average price of 80.63 US cents the previous day.