Linea Mercati Interview 4/18/23
April 18, 2023
Trio Petroleum Corp Announces Pricing of Initial Public Offering and Listing on NYSE American
April 19, 2023The New York Stock Exchange ended slightly higher on Monday after a hesitant session with weak trading, on the eve of numerous corporate earnings announcements on Tuesday.
The Dow Jones index gained 0.30% to 33,987.18 points, the technology-dominated Nasdaq rose 0.28% to 12,157.72 points and the S&P 500 rose 0.33% to 4,151.32 points.
“We were surprised by an Empire State indicator of activity in the New York region which went from negative to positive,” observed Peter Cardillo of Spartan Capital Securities.
The New York-area manufacturing activity index for April returned to growth for the first time in five months, thanks to a rise in orders.
It climbed 35 points to 10.8 points, according to the monthly Empire State survey, published by the New York branch of the American central bank (Fed) and carried out among industrialists in the region.
It will be supplemented Thursday by the publication of industrial activity in Philadelphia.
“But the rise in bond yields and the rise in the dollar also weighed on the trend because investors believe that the Fed will raise interest rates another 25 basis points in May,” added the analyst.
Yields on ten-year Treasury bills stretched to 3.59%, against 3.51% at the last closing, while those on two years, even more sensitive to the rise in rates, climbed to 4.19% against 4.09% Friday around 8:15 p.m. GMT.
Trading volume remained weak as investors took a wait-and-see stance ahead of Tuesday’s burst of corporate earnings.
“The start of the earnings season is too good to be true,” commented Edward Moya, analyst for Oanda: with the strong results of JPMorgan and Citigroup in particular last week, “the earnings season has had its best start since 2012”.
“The pessimism was so great that (analyst) estimates were revised down which led to all the announcements exceeding them,” he tempered.
On Tuesday, the banks Goldman Sachs (+0.80%) and Bank of America (+2.95%) as well as the defense group Lockheed Martin and the Johnson and Johnson laboratory are to announce their quarterly results.
On the side of the Nasdaq will also be watched Netflix (-1.75%), then Wednesday Tesla (+ 1.10%).
Several speeches by members of the Federal Reserve will also be listened to with attention by the markets two weeks before the next monetary meeting of the Fed on May 2 and 3.
On the rating, the asset manager State Street collapsed by 9.27% after announcing a decline in its profit and a reduction in its deposits.
Event on the Nasdaq, the action of Alphabet dropped 2.78% to 106.42 dollars after an interview with the boss of Google, Sundar Pichai who invited to avoid haste in the application of artificial intelligence.
The changes that AI will bring “are more profound than fire or electricity or anything that has been done in the past,” he said, adding that the behaviors of the technology “were not fully understood”.
In session, the internet giant dropped up to 50 billion dollars in capitalization also because of press reports indicating that Microsoft’s Bing search engine could be preferred to that of Google, used so far by default on Samsung phones.
