Wednesday, October 5

Wall Street indices open flat after the worst month since March 2020


In recent days, investors have taken long positions in the S&P 500 after the New York Stock Exchange’s flagship index briefly entered correction territory, defined as a 10% drop from the most recent high. The large-cap index is up 2.4% in the past five trading days.

The S&P 500 and Nasdaq Composite posted their worst months since March 2020 at the height of the pandemic, down 5.3% and 8.9%, respectively. It was also the S&P 500’s biggest January drop since 2009. The Dow Jones dropped 4% in January.

Many Wall Street strategists remind investors that corrections are normal in bull markets. Since 1950, there have been 33 S&P 500 corrections of 10% or more since 1950, with the average episode lasting about five months, according to Goldman Sachs.

The January liquidation came after The Federal Reserve will indicate that it is in a position to tighten monetary policy, including raising interest rates several times this year, to rein in inflation that has spiked to the highest level in nearly four decades at 7%. Investors abandoned growth-oriented technology stocks, which are particularly sensitive to rising interest rates, to seek value in more growth-oriented sectors such as banks or energy.

They have also added concern to the market geopolitical conflict between Russia and Ukraine, the rebound of the coronavirus due to the omicron variant and the persistent rise in inflation.

Wall Street closed with gains on Monday and the Dow Jones rose 1.2%, a rebound on the last day of January. The Dow Jones rose 406.39 points and stood at 35,131.86 units, while the selective S&P 500 advanced 1.89% or 83.70 integers, to 4,515.55 points.

The Nasdaq Composite Index, which brings together the most important technology companies, soared a remarkable 3.40% or 469.31 units, to 14,239.88 integers.

Investors await earnings statements from some key companies including Alphabet, General Motors, Starbucks, AMD and PayPal Holdings after the close on Tuesday. United Parcel Service has reported its 2021 earnings and its shares appreciate 6.3% in the pre-opening of Wall Street after its figures have been better than expected.

Regarding outstanding business news, the telecommunications operator AT&T has announced that it will split WarnerMedia to merge it with Discovery. The direction of the American ‘teleco’ approved an annual dividend of $1.11, compared to the current $2.08 after the Warner spin-off. AT&T shareholders will own 71% of the new company resulting from the merger between Warner Bros and Discovery and will receive 0.24 Warner Bros Discovery shares for each AT&T share they own.

Shares of theater operator AMC Entertainment rose more than 9% at the open after reporting better-than-expected preliminary fourth-quarter results. AMC said its results improved as 2021 progressed and the quarter was its strongest in two years.

UPS shares are up 13% in the first few minutes of trading after beating estimates with its quarterly results, issuing bullish guidance and announcing a 49% dividend increase. UPS earned $3.59 a share in the fourth quarter, against a consensus estimate of $3.10. After the good results of UPS, its rival FedEx (FDX) rose 2.5% in the market.

Energy giant Exxon Mobil earned $2.05 a share in the fourth quarter, beating the consensus estimate of $1.93, although revenue fell short of Wall Street forecasts. Exxon also announced a new $10 billion share buyback program, resuming buybacks for the first time in more than five years. Its shares rise 0.6% in the market.

The publisher of its namesake newspaper, the New York Times Co., announced a deal to buy popular daily word game Wordle for an unspecified amount, which the paper says is “in the seven figures.” The Times will eventually move the game to its website and apps.

Drugmakers may file as early as today for permission to use their Covid-19 vaccine for children under 5, according to people familiar with the discussions who spoke to The New York Times. The emergency use authorization could come as soon as the end of February. BioNTech added 3.6% in premarket, while Pfizer was little changed.

The price of a barrel of Brent quality oil, a reference for the Old Continent, stood at 89.05 dollars, after losing 0.22%, while Texas stood at 87.97 dollars, after falling 0. two%. Today we know that OPEC+ missed its oil production target by more than 800,000 barrels per day (bpd) on average last yearor, missing out on billions of dollars in revenue and hurting group members who have struggled to come up with cash to invest, according to data seen by Reuters. Based on an average price of $70 per barrel for OPEC’s crude basket, the 800,000 bpd production loss – about half of the UK’s daily consumption – equates to a revenue loss of about $21 billion. dollars for the group in 2021, according to Reuters calculations.

After its record production cuts in 2020, OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies led by Russia, has been lifting the brakes as demand recovers from the greater impact of the COVID pandemic. -19.

The price of the euro against the dollar stood at 1.1260 ‘greenbacks’, with the interest required on the ten-year US bond at 1.74%.

The Ibex 35 reaches 8,700 points in the mid-session with an advance of 1.06%. The rest of the European stock markets also maintained their gains in the mid-session with advances of 0.78% in London, 0.93% in Paris, 0.94% in Frankfurt and 1.05% in Milan.



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