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WALL STREET FINISHED STRONG
NEW YORK (Reuters) – Wall Street flew Thursday, propelled by Microsoft, which helped the Nasdaq to rebound after it had suffered the day before its biggest loss since 2011.
The stock market also benefited from cheap buybacks after Wednesday's storm, which wiped out the annual gains of the Dow and S & P and returned to the Nasdaq to find itself in the outright correction phase.
The Dow Jones index gained 401.13 points (1.63%) at 24,984.55 points. The broader S & P-500 took 49.47 points (1.86%) to 2,705.57 points. The Nasdaq Composite advanced 214.60 points (3.02%) to 7,323 points.
"It's a rebound from an oversold situation somehow," said Robert Pavlik (SlateStone Wealth). "There may also be overdraft purchases," he adds.
Microsoft took 5.8%, after Wednesday beat the consensus on both its turnover and its earnings. It contributed well, along with semiconductor specialists, to the leap of 3.32% in the technology index, the second sectorial increase of the day.
Several companies, from the most diverse sectors, have published solid results, somewhat appeasing investors who found that the "season" of the results had a timid start and then became frankly disappointing.
Adding to this the repercussions on the profits from customs duties and the slowdown in Chinese growth, the surge in Italian bond yields and the upcoming US mid-term elections, it was enough for Wall Street to have a very bad day yesterday.
Decommissions lowered the valuation of the S & P-500 to a RIP of 15.3, the lowest in two and a half years, according to Refinitiv data.
Analysts revalued their earnings growth forecast for the third quarter, from 21.8% in the last 10 days to 23.6%. On the other hand, that of the fourth quarter was reduced from 19.9% to 19.4%, show data from Refinitiv.
VALUES
Driven by high-tech stocks, the semiconductor index of the Philadephie Stock Exchange is up 2.34%.
Three high tech heavyweights have released their quarterly accounts after the close, Alphabet, Amazon.com and Intel with various fortunes.
Alphabet broke the consensus, but its action declined sharply after the stock market. Conversely, Intel, which also beat the consensus, flew more than 6% in the after-market, while Amazon suffered the fate of Alphabet, giving up 5.5% after-market, because its turnover did not meet expectations.
INDICATORS OF THE DAY
Weekly jobless claims rose in the United States during the week to October 20, to 215,000 from 210,000 the previous week, but the number of people receiving regular allowances fell to its lowest level in more than 45 years.
New orders for industrial capital goods fell in September in the United States for the second month in a row, suggesting continued moderation in capital spending in the third quarter.
Pledges for old home sales in the United States rose unexpectedly in September compared with August, a good point for the troubled real estate market, but are falling year on year for the ninth consecutive month.
The US trade deficit widened in September, as higher imports obscured the rebound in exports, statistics released Thursday by the Commerce Department show.
THE SESSION IN EUROPE
European stock markets finished higher for most of Thursday, the rebound started at the opening being confirmed with a positive opening of Wall Street and despite variously appreciated announcements of the European Central Bank.
The Paris CAC 40 rebounded by 1.6% and the German Dax took back 1.03% but the British Footsie could not do better than + 0.59% and the Swiss SMI gave up 0.21%. The Milan Stock Exchange took 1.78% and the Madrid Stock Exchange 1.24%.
The EuroStoxx 50 index ended up 1.09%, the FTSEurofirst 300 0.5% and the Stoxx 600 0.51%, after six consecutive sessions of decline.
FOLLOW OCTOBER 26:
Publication at 12.30 GMT of the first estimate of US GDP in the third quarter (consensus: + 3.3%).
Speech by Mario Draghi, President of the European Central Bank (ECB), at the National Bank of Belgium at 14:00 GMT.
Review of the sovereign rating of Italy by Standard & Poor's in the evening.
(Daniel Amy Caren, Wilfrid Exbrayat for French service)
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