Sunday, January 16

Strong sell-off of tech papers drags Wall Street lower

Analysts considered that it was an early portfolio shift from technology papers to stocks linked to consumption and production.

Apple was down 3.9%, Microsoft was down 2.9%, and top semiconductor stocks like AMD and Nvidia fell nearly 5.4% and 6.8%, respectively.

Adobe shares fell more than 10% after the company’s future direction was lower than expected by analysts.

The liquidation of technological papers gained momentum as the wheel advanced and marks a reversal with respect to what happened the day before when the actions of this sector, led the rebound of the market, after the meeting of the FED.

Large technology companies have benefited greatly from low interest rates that make their valuations more attractive. The sector could continue to fall, as investors take into account the increase in interest rates until 2022, according to several analysts

Banks and healthcare companies made solid gains. Pfizer was up 4.1% and Johnson & Johnson gained 1.1%. Bank of America rose 2.8%, Goldman Sachs climbed 1.9% and JP Morgan & Chase climbed 1.6%.

Some economic data did not influence the sentiment of the operators. The number of Americans filing for unemployment benefits increased to 206,000 people.

US industrial production increased 0.5% in November, according to the Federal Reserve, the highest level since January 2019.

The Commerce Department reported that new home construction in the United States rebounded 11.8% in November as strong demand continues to boost builder confidence.

The best of the Dow Jones went to Verizon Communicatios + 4.3%, IBM and The Travelers + 2.3% and Goldman Sachs + 1.9%.

En el S&P 500 se destacaron Newmont +8,8%, AT&T +6,9% y Accenture +6,7%.

On the Nasdaq, the main increases were recorded in Peloton + 3.4%, Kraft Heinz + 3.2% and Charter Communications + 2.3%.

In Europe, stocks closed higher after investors welcomed the decisions of major central banks.

The Bank of England (BoE) today raised its benchmark interest rate 0.25%, for the first time since the start of the pandemic, despite concerns about the rapid spread of the Omicron variant in the UK.

The European Central Bank (ECB) cut its bond purchases further on Thursday, but promised to continue its unprecedented monetary policy support for the euro zone economy through 2022.

In the leading Euro Stoxx 50 index, which gained 1%, the Spanish bank Santander + 4.1%, the French oil company Total + 3.2% and the Belgian beer giant Anheuser Busch Inbev + 3.1% stood out.

In London, the FTSE and in Madrid, the IBEX 35 rose 1.3%, the CAC 40 of Paris climbed 1.1%, the DAX of Frankfurt climbed 1% and the MIB of Milan advanced 0.4%.