(New York) After several sessions of losses, the New York Stock Exchange rebounded on Tuesday, led by the NASDAQ and supported by a volley of good American indicators.
The Dow Jones Index advanced 0.63% to 33,926.74 points, the tech-heavy NASDAQ climbed 1.65% to 13,555.67 points and the broader S
“US equities rallied after strong US economic data boosted consumer stocks as investors once again flocked to artificial intelligence trades “, summed up Edward Moya for Oanda.
Real estate, household sentiment, durable goods orders: Plenty of economic data showed Tuesday that “the US economy is not yet in a slump,” the analyst added in a note.
For Adam Sarhan of 50 Park Investment, “It’s obvious that the ‘bulls’ (those who believe in a bullish market) have been on the move today.”
“We are coming to the end of the month and the quarter”, a time when investors are starting to “groom portfolios” and buy “after the recent drop”, continued the analyst interviewed by AFP.
“It’s a sign that the market is trending up,” Mr. Sarhan added.
Durable goods orders for May continued to rise beyond expectations, for the third month in a row, thanks in particular to transport equipment. They increased by 1.7% and by 0.6% without the transport sector.
On the real estate front, home prices, up for the third month in a row, rose 0.5% month on month in April, according to the Case-Shiller index. As for sales of new homes in May, they reached their highest level for a year.
But the most important event in the eyes of stockholders was the Conference Board’s consumer confidence index for June which came in much better than expected at 109.7 points against 103.8 points expected and 102.5 points the month before. Consumption is the engine of US growth, accounting for some three-quarters of GDP.
On the odds, the favorite technology stocks have picked up the slack led by Nvidia, the specialist in microprocessors used for artificial intelligence (3.06%), Meta, the parent company of Facebook (3.08% ), Tesla (3.80%), not to mention Intel (2.28%) and Microsoft (1.82%).
Delta airline soared 6.84% after raising its full-year forecast on higher demand and lower fuel costs. This also benefited other companies such as American Airlines (5.54%) and United Airlines (5.08%).
As an example of the discretionary spending sector’s lurch, after an improved indicator of consumer sentiment emerged, cruise lines took off: Carnival gained 8.84% and Royal Caribbean 4.31%.
Pharmacy chain Walgreens, on the other hand, plunged 9.34% after lowering its earnings forecast due to lower consumer demand for COVID-19 tests and vaccines.
Bad news from the side of the American manufacturer of electric vans Lordstown Motors, which has finally declared bankruptcy while suing the Taiwanese Foxconn, which it accuses of not having kept its promises of commercial and financial partnership.
The title of the group created in 2018 collapsed by 17.18% to 2.29 dollars.
