Saturday , September 18 2021

Wall Street opens, driven by business results

Published on: Change:

New York (AFP)

The New York Stock Exchange opened higher on Thursday, driven by a new wave of high-performance corporate results and after the digestion of the US Federal Reserve (Fed) messages.

At 14:00 GMT, the Dow Jones was up 0.48% to 35,099.65 points, the Nasdaq was up 0.22% to 14,800.51 points and the expanded S&P 500 index was up 0.44% to 4,420.09 points.

Many waited for several days, the Fed’s press release and the statements of its president Jerome Powell on Wednesday did not really bring new elements, leaving the market unresponsive.

The institution keeps its line very closely, without committing itself to a scheme for withdrawing support measures.

The publication, for the stock market, of a growth rate for the US economy for the second quarter significantly lower than expected, at 6.5% annually against 8.5% expected, does not seem to have moved operators any further.

However, this growth remains abnormally high and has allowed US GDP to return to its pre-pandemic level, even exceeding the figure at the end of 2019.

The same goes for the announcement of an agreement in the US Senate on the massive investment plan for infrastructure, with more than a trillion dollars.

“The macroeconomic news is not really having an effect,” said Peter Cardillo of Spartan Capital. “It will be a results-oriented session” of companies.

– Robinhood –

Another micro-event of the day, the debut on the stock market of the brokerage platform Robinhood, troublemaker of finance and pioneer of a revival of the importance of small holders in shares.

The group will issue some 52.3 million shares for a unit price of $ 38, which is in line with the low range of the first announced estimate.

Robinhood is expected to raise about $ 1.89 billion in this deal, for a total valuation of about $ 32 billion.

In the table of values, the action of the “Chinese Uber”, Didi Chuxing, hovered 11.05% to $ 9.85 in the first exchanges, reinforced by information from the Wall Street Journal, according to which the group could be withdrawn from the rating.

Subject to a heavy takeover by the Chinese regulatory authorities, the group has nevertheless denied the information.

Another title in form Thursday (+ 4.91% to $ 14.54), Ford. The American automaker released better-than-expected results on Wednesday, raising its forecasts.

Following the release of its results to the market on Wednesday, Facebook also took place (-3.88% to $ 358.79), limited by the social network’s cautious statements over the coming quarters.

The social network is particularly afraid of changes in Apple’s operating system, which will no longer allow users of their application store to collect their usage data.

Semiconductor maker Qualcomm did well (+ 4.66% to $ 149.08), thanks to better-than-expected results and an encouraging speech for the second half of the year. The group says it is well positioned to influence the supply constraints that the sector has.

The cable operator Comcast (+ 2.21% to $ 59.26) also published better than expected results, driven by broadband.

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