STOCK EXCHANGE: Wall Street is looking for direction after a wild rally

Stock markets in the United States opened in two parts on Thursday

Shortly after the opening, the S&P 500 was up 0.1 percent, the Nasdaq was at the previous day’s readings, and the Dow Jones was up 0.3 percent.

The stock market set new records on Wednesday after a long period of growth.

The S&P 500 index, which tracks large companies, rose 0.8 percent to 7,022.96 points yesterday. This is a record closing price for the index, and the first time the index has crossed the 7,000 point mark.

The closing price record was also set by the technology-focused Nasdaq, which strengthened by 1.6 percent. Nasdaq has already accumulated 11 trading days in a row. It is the longest continuous uptrend since 2021. The 12-day uptrend was last seen in 2017.

Large technology companies have mainly been responsible for the increase. The flagship Dow Jones index was down on Wednesday and still well below its peak levels.

In light of the statistics, small investors are not yet excited to chase the share rally. According to Bloomberg, subscriptions to exchange-listed equity funds have been close to zero in recent weeks.

Investors’ worries about the Iran war and rising energy prices caused by the blockade of the Persian Gulf have allayed, and the US and Iran are expected to return to the negotiating table in the coming days.

However, some of the strategists who follow the market warn that the vital shipping lane for the world economy is still mostly stuck.

“Investors are trained to buy every dip,” summed up the asset manager RBC BlueBayn rescuer Michael Bell to Bloomberg on Thursday.

“However, the outlook is binary. Either the Strait of Hormuz opens or it doesn’t. The market already assumes it will open soon, so the upside is perhaps limited.”

Earnings season in full swing

PepsiCo, known for its drinks and delicacies, said that the results for the beginning of the year exceeded analysts’ expectations. The company’s organic sales grew by 2.6 percent in the first quarter of the year.

The company has recently suffered from a weakening of consumers’ purchasing power. Activist investor Elliott, who bought a slice of the company last year, pressured Pepsico to lower the prices of its products, and so far the price reductions have proven to be successful. The sales of the Frito-Lay division, which sells various snacks, returned to growth at the beginning of the year.

The company’s share was up 0.9 percent.

On Wall Street, the earnings season is well underway, and the companies’ profit forecasts are on the rise.

For the banks that have already reported their results, the beginning of the results period was strong. Morgan Stanley exceeded expectations both in turnover and in the profit line. The company’s turnover increased by 16 percent from the comparison period to 20.58 billion dollars, while analysts were expecting a turnover of 19.72 billion dollars.

Bank of American turnover increased by 7.2 percent from the comparison period to 30.43 billion dollars. Analyst expectations were $29.93 billion.

The Philadelphia Fed index, which describes fresh labor market figures and the outlook for factory production in the area of ​​operation of the Philadelphia Federal Reserve Bank, was also published on Thursday in the United States.

Last week, 207,000 new unemployment compensation applications were registered, while 213,000 applications were expected.

In April, the Philadelphia Fed got a score of 26.7, while expectations were 10.0. In March, the index reading was 18.1. Positive values ​​indicate industrial growth and negative readings indicate a decrease.