Wall Street opens higher with ‘techs’ and banks, Corporate news

PARIS, May 10 (Reuters) – The New York Stock Exchange opened higher on Tuesday on the back of cheap buying in growth stocks and bank stocks after three consecutive sessions of falling indices linked to fears over the economy. inflation, rising interest rates and slowing global growth.

In early trading, the Dow Jones index gained 396.35 points, or 1.23%, to 32,642.05 points and the broader Standard & Poor’s 500 rose 1.37% to 4,046.08 points.

The Nasdaq Composite took 1.83%, or 213.11 points, to 11,836.36.

This index, rich in technology stocks, and the S&P-500 have lost since the beginning of the year respectively 26% and 16% due to the impact of the war in Ukraine, the effects of health restrictions in China in the face of the resurgence of the COVID-19 epidemic and rising interest rates in the United States.

For Sam Stovall, investment strategist at CFRA, the market is still on a downtrend, with Tuesday’s rebound being mainly technical and based in part, perhaps, on the hope of a deceleration in consumer prices in the United States whose data for the month of April will be published on Wednesday.

“Investors, from this perspective, are now looking for a catalyst that shows the worst is over or there is no more fear on the horizon,” he said.

The President of the Federal Reserve of New York, John Williams, assured Tuesday that the objective of the American central bank (Fed) to bring inflation back to 2% without derailing the economy was a difficult but achievable mission.

Stocks Apple, Meta Platforms, Amazon, Microsoft, Tesla and Nvidia, which together have lost more than $1 trillion in market capitalization since the Fed raised interest rates by half a point last Wednesday, take Tuesday from 2.3% to 4.1%. The “tech” index rose by 2.4%.

In banks, Morgan Stanley advanced by 1.5% with the rebound in the banking sector, which rose by 1.2%.

In terms of business results, cinema operator AMC Entertainment gained 7.2% thanks to better-than-expected quarterly sales linked to the success of big-budget films like “The Batman”.

On the downside, Novavax plunged 20.2% after the laboratory announced the delivery of only 31 million doses of its vaccine against COVID-19 in the first quarter out of the two billion that it plans to sell this year.

In terms of mergers and acquisitions, Pfizer (+1.8%) announced the acquisition of migraine drug maker Biohaven Pharmaceutical (+70%) for around 11.6 billion dollars (10.9 billion euros) in numerary.

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