A man lying on a bench facing the New York Stock Exchange (NYSE) on Wall Street (New York), July 13, 2020 (AFP / Johannes EISELE)
The New York Stock Exchange ended clearly in the green Tuesday, after a jagged session, marked by the quarterly results of several major American banks and the hope of additional measures to support the economy.
Its flagship index, the Dow Jones, climbed 2.13% to 26,642.59 points, recording its third straight advance.
The Nasdaq, with a strong technological coloring, appreciated by 0.94% to 10,488.58 points.
The broader S&P 500 index rose 1.34% to 3,197.52 points, returning to almost the same level as at the start of the year.
According to press reports, Democrats and Republicans are close to a compromise in Congress to vote for new support measures in response to the crisis linked to the Covid-19 pandemic.
“The promise of fiscal stimulus boosts economic expectations,” said Chris Low of FHN Financial.
The plan could include sending new government checks to US residents after the $ 1,200 per person already distributed in May, as well as extending weekly unemployment benefits until early next year.
According to Lael Brainard, Governor of the Fed, public aid is “vital” to allow the American economy to get through the Covid-19 crisis, in particular because of the risk of a second wave of contamination and its repercussions.
The optimism about a recovery has in any case been confirmed in New York, where several cyclical stocks, which are highly dependent on fluctuations in the economy, ended up.
This was notably the case of the construction machinery manufacturer Caterpillar (+ 4.83%), which is part of the Dow Jones, and of the agricultural equipment manufacturer Deere & Company (+ 3.50%).
Tuesday’s session was also animated by the publication before the opening of the second quarter results of several large banking institutions.
JPMorgan Chase (+ 0.57%) and Citigroup (-3.93%) did better than expected between April and June, but the two banks had to put huge sums aside to meet the arrears of their respective customers .
Wells Fargo (-4.57%), which recorded a net loss of $ 2.4 billion, also had to provision $ 8.4 billion to protect itself from a situation much worse than expected because of of the pandemic.
The streaming giant Netflix and the pharmaceutical group Johnson & Johnson will also bend to this exercise in the coming days.
Among the indicators, consumer prices rose again in June in the United States, to + 0.6%, after three months of decline due to the crisis linked to the Covid-19, according to the CPI index released Tuesday by the Labor Department.
On the bond market, the 10-year rate on the US debt stood at 0.6217% around 20:55 GMT, up from Monday evening (0.6184%).
– Ford revives the Bronco –
Among the other values of the day, Delta Air Lines (-2.65%) recorded a net loss of $ 5.7 billion in the second quarter but said Tuesday that it had 15.7 billion in cash at the end of June to face the consequences of the pandemic.
Its competitor American Airlines fell 0.52%. According to the CNBC financial news channel, the group will announce to its pilots this week that some of them may soon be placed on technical unemployment.
Ford rose 4.95% after unveiling new versions of its legendary Bronco 4×4 on Monday evening, hoping to attract a new generation of enthusiasts more than two decades after the production of this model stopped.
Nokia took 3.35%. The Finnish telecommunications equipment manufacturer has announced the launch of new software allowing mobile operators to upgrade their broadcasting systems, from 4G to 5G, without requiring a visit to the infrastructure or the installation of new equipment.
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