(News Bulletin 247) – Optimism was back on Wall Street at the opening on August 23: confidence strengthened over the hours, the Nasdaq (+1.6% in the end) having been driven by the semiconductor SOX index (with +2.1% gain).
There was also a sharp rise in the S&P500 with +1.10% at 4.436, 0.2% from a resistance at 4.444.
The session and especially the post-session were placed under the sign of Nvidia, which gained +3.2% ahead of the publication of its quarterly results, which turned out to be very solid as expected: the stock jumped + 8% to $510 (new absolute record) on the announcement of a titanic $25 billion share buyback plan, ie 4% of the capital.
The 2023 semiconductor champion, with a +225% increase, displays despite its $2.7 profit per share (and $13.5 billion in sales) an astronomical PER of more than 240.
Note that it was the evening of good surprises: Splunk jumped 10% on its results (after closing) and Abercrombie & Fitch soared 25% to $50.
The Dow Jones Industrial Average gained just 0.54% to 34,473, which just erased yesterday’s losses.
Wall Street was also supported by the improvement in Treasuries with an easing of -13 basis points in T-Bonds towards 4.2000% following the publication of a very mediocre ‘PMI’ (leading indicator of activity ) services, down to 51 instead of the expected 52.5.
No reaction during the publication at 4:00 p.m. of a +4.4% increase in new home sales in the United States, with 714,000 transactions on an annual basis, better than the 704,000 expected.
Net decline in oil after the ‘global’ PMIs published in Europe in the morning: the WTI dropped -1.4% to $78.6.
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