Wall Street on the rise, driven by banking and energy

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Wall Street on the rise, driven by banking and energy

The New York Stock Exchange opened in dispersed order Monday, a public holiday in the United States, driven by the values ​​of the banking and energy sectors and despite renewed nervousness linked to inflation.

Around 2:00 p.m. GMT, the Dow Jones gained 0.48% to 34,912.69 points. The Nasdaq index, influenced by technology stocks, took 0.43% to 14,642.59 points and the extended S&P 500 index, 0.43% also to 4,410.12 points.

Monday is a public holiday in the United States, called Columbus Day but also more recently Indigenous People’s Day, the day of indigenous populations to pay tribute to the Amerindians.

Therefore, “we expect volumes to be low,” said Peter Cardillo of Spartan Capital Securities.

Because of this lack of operators, the indices “could go back and forth between gains and losses during the session,” warned the analyst.

At the start of the session, investors were scrutinizing oil prices, which continues to grow irresistibly. The barrel of US WTI thus touched a high for almost seven years Monday, at $81.58.

This movement benefited energy sector stocks such as ExxonMobil (+ 0.70% to $62.62), Halliburton (+ 3.23% to $24.71) or Phillips 66 (+ 1.72% to $83.54).

In general, markets take a dim view of inflation while, at the same time, growth is slowing.

A sign that the bond market is gradually integrating the idea of ​​persistent inflation and a possible rise in medium-term rates, the yield on 10-year US government bonds reached a peak on Friday since early June.

US 2- and 5-year government bond rates have even hung on their highest level since the start of the coronavirus pandemic. The bond market was closed on Monday.

This rate hike is favorable for banks because it allows them to rebuild their margins, under pressure with the floor rate policy of the American Central Bank (Fed) since the start of the coronavirus pandemic.

Monday, Bank of America (+ 0.81% to $44.70), Goldman Sachs (+ 0.87% to $396.21) and Citigroup (+ 1.26% to $73.26) started the session on a good note.

Wall Street will be able to better gauge the extent of this inflationary surge this week with the publication, Wednesday, of the consumer price index for the month of September.

The New York Stock Exchange will also be informed by the quarterly results of companies, whose season starts in earnest Wednesday, with JPMorgan Chase, Delta Air Lines and BlackRock.

Meanwhile, Southwest fell on Monday (-2.21% to $52.73) after the cancellation, this weekend, of more than 1,800 flights in the United States. This wave of cuts was triggered by heavy rains in Florida on Friday, which disrupted the organization of the company, which was more affected than its competitors.

The Dutch Bros coffee chain, which went public in mid-September, soared (+ 9.26% to $46.60) after several analysts began their monitoring of the title by recommending the action to buy. Founded in 1992 in Oregon, Dutch Bros., specializing in drive-in coffee, is now worth more than $2.3 billion on the stock market.

The investment company KKR reacted well (+ 1.68% to $66.61) to the announcement of the handover of two of the three co-founders, Henry Kravis and George Roberts (Jerome Kohlberg had died in 2015), who hand over general management to Joe Bae and Scott Nuttall. Even if MM. Kravis and Roberts will retain the executive chairmanship of the group they founded in 1976, it is the end of an era for KKR, which was long associated with the dark side of private equity.