Wall Street ends July on a high note, its best month of the year

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Wall Street ends July on a high note, its best month of the year

< p class="sc-v64krj-0 knjbxw">Despite fears of an economic recession, the New York Stock Exchange is posting good numbers.

The New York Stock Exchange ended Friday on a positive note its best month of the year, supported by results exceeding pessimistic expectations and by the idea that the American Federal Reserve (Fed) will not have not too heavy handed to rein in the economy and inflation.

The Dow Jones Industrial Average ended the session up 0.97% at 32,845.13 points, an increase of almost 7% over the month.

The NASDAQ jumped 1.88% to 12,390.69 points, a jump of more than 12% in July.

As for the broader S&P 500 index it advanced 1.42% on Friday to 4,130.29 points and more than 9% for the month, its best monthly performance since November 2020.

This progress comes thanks to the positive results of certain large groups, including Apple and Amazon, summed up the analysts of the stock brokerage house Schwab. However, Intel and Procter and Gamble both disappointed expectations and issued frustrating forecasts that limited Dow Jones gains, they added.

Tech mega-cap releases , Amazon and Apple, had indeed reassured Thursday after the closing, with sales better than expected, even if their net results were less brilliant.

Amazon saw its stock soar 10.36% to $134.95 as its second-quarter revenue rose 7%, even as the online retail giant posted a two-month loss. billion dollars related to exceptional items.

Also a NASDAQ heavyweight, Apple (+3.28%) saw robust demand for its iPhones, but its profit fell in second quarter.

In contrast, Dow Jones member Intel plunged 8.56% after falling into the red in the second quarter and lowering its earnings forecast. x27;business for 2022, citing a slowdown in global activity.

Streaming access company Roku collapsed (-23.07%) as management admitted it had not expected the severity of the contraction of the advertising market.

Finally, the group of consumer products Procter & Gamble (P&G) fell 6.11% after reporting disappointing annual financial targets.

P&G, which makes Gillette razors and Pampers diapers, among others, cited the negative impact of currency exchange rates, higher commodity prices and rising transportation costs as factors weighing on its growth.

The American hydrocarbon giants ExxonMobil and Chevron have generated huge profits in the wake of rising oil prices this year.

In the second quarter alone ExxonMobil earned $17.9 billion and Chevron $11.6 billion. On Wall Street, Exxon stock gained 4.74% and Chevron +8.90%.

On the macroeconomic front, after the surprise of a US GDP down 0.9% in the second quarter published on Thursday, the Fed's favorite inflation index confirmed for the month of June a marked acceleration in the rise in prices, which could have reached a peak.

The PCE index, based on consumer spending and the central bank's preferred barometer for measuring inflation, climbed 6.8% from June 2021 and 1.0% from May , driven by energy and food.

According to Edward Yardeni of analyst firm Yardeni Research, investors seem to be betting on a mild recession and a moderation in inflation that could end the US central bank's monetary policy tightening cycle sooner than expected.

The Fed raised its key rates on Thursday of 75 basis points as expected and hinted that, if it intended to make further turns of the screw, it was also ready to slow them down if necessary.

The results of July have cheered investors up and improved US consumer confidence a little, while remaining very close to the all-time low reached in June.

10-year bond yields fell a little to 2.64%, their lowest in four months.

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