Some good news, no bad news, Wall Street closes sharply higher

New York (AFP) – The New York Stock Exchange ended sharply higher on Thursday, driven by bargain hunting, investor sentiment that the US Federal Reserve (Fed) is a bit less radical than expected and some good corporate results.

The Dow Jones rose 1.61% to 32,637.19 points, the Nasdaq index 2.68% to 11,740.65 points, and the broader S&P 500 index 1.99% to 4,057.84 points.

“Investors who think the market is undervalued have come forward,” Adam Sarhan of 50 Park Investments commented, along with speculative traders who bought to cover their positions.

After a series of eight consecutive weeks of declines, for the first time in nearly a century (1923), the Dow appeared to be able to close the week higher (+4.39% so far) on Thursday.

“This series of increases (throughout the week) is like a breather,” Adam Sarhan said.

“What is inspiring some is that a lot of the bad news is already priced in” relative to market prices, said Patrick O’Hare of

The approaching end of the month also played a role, according to Adam Sarhan, with many managers making last-minute adjustments to their portfolios (“window decorating”).

The New York market also retained the good impression made by the minutes of the latest meeting of the Federal Reserve, which was published on Wednesday.

Western Union’s Joe Manimbo explained that the scenario, which emerged this week, for a central bank to slow from September in its monetary tightening so as not to overwhelm US economic activity, was realistic.

Wall Street has also been sensitive to the good numbers released by many companies, particularly in the retail sector, which started on the wrong foot last week with Walmart and Target.

Thus, Macy’s supermarket chain (+19.31% to $22.92) fared better than analysts expected, as did decorative items brand Williams Sonoma (+13.06%) or discount distributor Dollar General (+13.71%), which even raised its forecast for the year.

A gusty wind suddenly blew across the entire retail sector, benefiting Nordstrom (+5.26%), which also beat expectations the day before, but also Walmart (+2.13%), Target (+4.33%) or Home Depot (+3.15%) .

No echo of China and its alignment, Ukraine conflict that tends to decline in the news, “In this environment, the absence of bad news is good news,” summed up Adam Sarhan, “C for this market is up a lot.”

The operators also welcomed the announcement of the acquisition of remote (cloud) computing company VMware (+3.17% to $124.36) by semiconductor maker Broadcom (+3.58% to $550.66), for a $61 billion project. .

The operation is a ray of sunshine for a sector that just had a very difficult start to the year in the stock market.

Graphics card maker Nvidia (+5.16% to $178.51) benefited from better-than-expected results from analysts, even if its outlook disappointed.

Twitter was also sought (+6.35% to $39.52), after the announcement on Wednesday that Elon Musk had raised the share of the direct contribution he was putting on the table to buy the social network, to $33.5 billion, compared to 21 originally planned.

And so the entrepreneur relinquished the entire $12.5 billion loan secured by Tesla shares that he would have initially subscribed to, bringing a revival in the electric car maker’s title (+7.43% at $707.73).

Chinese e-commerce giant Alibaba (+14.79% to $94.48) was touted for its better-than-expected results. The group, unlike many others, has benefited from the sanitary confinement in China, which has boosted online sales.

Manchester United, listed in New York, has been penalized (-3.77% to $12.52) after reporting a quarterly loss and an increase in net debt, which occurs at the heart of a disastrous season for the English football club.

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