(News Bulletin 247) – Wall Street opened higher on Tuesday, supported by energy stocks, but trading that is generally calm as the Thanksgiving weekend approaches.
At the end of the morning, the Dow Jones won more than 0.7% to 33,960.5 points, while the Nasdaq Composite rose 0.2% to 11,047.7 points.
Nothing really surprising, since the US equity markets have a habit of rising for purely ‘tactical’ reasons before the long bridge of Thanksgiving and ‘Black Friday’.
According to the Stock Trader’s Almanac, the S&P 500 index advances an average of 0.3% during the week of Thanksgiving.
Historically, the date of Thanksgiving indeed marks the beginning of the best time of the year for Wall Street, with a gain that averages 2% for the period from Thanksgiving to December 31.
By far the strongest sectoral increase in the S&P 500, the energy compartment took 2.2%, in the wake of the rise in oil prices.
The barrel of WTI oil rebounded 1.8% to 81.5 dollars, carried by a denial by Saudi Arabia to information from the Wall Street Journal according to which the kingdom would reflect on an increase in production with its allies in the OPEC.
In second place, basic materials stocks gained 1.5%, followed by financials (+0.8%) and then industrials (+0.7%).
Conversely, telecoms and real estate are hovering around equilibrium.
In the bond compartment, the yield on 10-year US government bonds fell back to 3.77%, a decline that encouraged investors to review their arbitrages to the detriment of bonds.
As for values, Best Buy jumped 11% after having done better than expected in its third quarter and raised its forecasts for the full year in the process.
Dollar Tree, on the other hand, dropped 8% after indicating that its annual results should be within the lower limit of the objectives it had aimed for so far.
Dell climbed nearly 4% after reporting quarterly profit above expectations last night on strong demand for its servers, while playing the card of caution in its forecasts.
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