NEW YORK (Dow Jones) — Bulls regained control of Wall Street on Tuesday after a rough patch for stock markets. The order intake announced before the market in May was significantly better than expected. The index of consumer confidence and the number of new home sales also exceeded economists’ forecasts. Another positive note is that inflation in Canada has come down significantly. Comments from Chinese Premier Li Qiang, who said the world’s second-biggest economy remains on track to reach its annual growth target of around 5 percent, are fueling more risk-taking. Beijing will take measures to increase domestic demand and open up markets.
The Dow Jones index rose 0.5 percent to 33,867 points around midday (New York local time), the S&P 500 and the Nasdaq Composite gained 0.7 and 1.0 percent. The 10-year yield is up 3.8 basis points.
The S&P 500 has fallen in five of the past six sessions on continued concerns about an economic slowdown and profit-taking by fund managers. Participants point to the approaching half-year end which is prompting portfolio rebalancing, particularly given the year-to-date strength of the big tech stocks. As a result, there was profit-taking, especially on the Nasdaq after a strong run. Shares of Nvidia, for example, are down 5.5 percent in the past five days after advancing 178 percent so far this year. On Tuesday they advance by 1 percent.
Bonds and dollars fall
In view of the rising share prices, government bonds are not in demand, even if the Canadian inflation data have awakened the imagination that interest rates will soon turn around in the USA as well.
The dollar is not in demand as a safe haven. The euro is moving up slightly from the 1.09 level and is trending around $1.0960.
On the other hand, economic worries weigh somewhat on the oil price. In addition, despite the sanctions, Russian oil is being sold to the markets via resale, according to one participant. On the other hand, it is said that the new OPEC agreement between Saudi Arabia and Iran is being overestimated. It was completely normal for the consulates to have reopened, and both sides wanted the situation in Yemen to calm down because of the high costs. “But the differences in Iraq policy seem insurmountable,” he says, referring to the different interests. However, the price is said to be in its recent range.
Walgreens under pressure by the numbers
Before the start of the stock market, Walgreens Boots Alliance reported figures and lowered the forecast after failed expectations. The share price fell by 8.7 percent.
Arena Group Holdings gain nearly 16 percent. Triggered by a Wall Street Journal report that media outlet Group Black is in talks to acquire a controlling interest in Arena, publisher of more than 50 publications including Sports Illustrated.
Illumina plans to further reduce headcount as part of a broader effort to reduce operating costs. The manufacturer of gene sequencing equipment and services also wants to reduce its real estate portfolio. The course falls by 4.7 percent.
Delta Air Lines improves 4 percent. Due to the consistently high demand, the airline has increased its annual targets.
Robinhood stock is up 1.6 percent. The Wall Street Journal reported that the financial services firm was laying off about 7 percent more of its full-time employees, about 150.
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INDEX last +/-% absolute +/-% YTD
DJIA 33,867.47 +0.5% 152.76 +2.2%
S&P 500 4,358.56 +0.7% 29.74 +13.5%
Nasdaq Comp. 13,470.51 +1.0% 134.74 +28.7%
Nasdaq-100 14,843.02 +1.0% 154.00 +35.7%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.76 +1.5 4.74 33.7
5 years 4.03 +6.3 3.97 3.2
7 years 3.90 +5.1 3.85 -6.6
10 years 3.76 +3.8 3.72 -12.0
30 years 3.83 +1.7 3.82 -13.7
FOREX last +/- % Tue 8:18 Mon 18:40 % YTD
EUR/USD 1.0958 +0.5% 1.0925 1.0900 +2.4%
EUR/JPY 157.79 +0.8% 156.88 156.49 +12.4%
EUR/CHF 0.9800 +0.3% 0.9779 0.9760 -1.0%
EUR/GBP 0.8594 +0.2% 0.8576 0.8574 -2.9%
USD/JPY 143.99 +0.4% 143.61 143.57 +9.8%
GBP/USD 1.2750 +0.3% 1.2739 1.2713 +5.4%
USD/CNH (Offshore) 7.2205 -0.3% 7.2148 7.2446 +4.2%
Bitcoin
BTC/USD 30,552.62 +1.3% 30,295.45 30,245.68 +84.1%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 68.41 69.37 -1.4% -0.96 -13.8%
Brent/ICE 73.13 74.18 -1.4% -1.05 -12.7%
GAS VT Settlem. +/- EUR
Dutch TTF 34.97 31.98 +9.4% +3.00 -59.7%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,914.01 1,923.31 -0.5% -9.30 +4.9%
Silver (Spot) 22.87 22.83 +0.2% +0.05 -4.6%
Platinum (Spot) 924.00 929.00 -0.5% -5.00 -13.5%
Copper Future 3.78 3.78 -0.2% -0.01 -1.0%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
June 27, 2023 12:06 ET (16:06 GMT)