Sunday, August 14

Wall Street relies on the results after the slowdown in GDP

The main indicators of the NYSE They opened with moderate increases of 0.6 percent and looking towards corporate results after the slowdown in US GDP.

Specific, the world’s leading economy grew 2 percent in the third quarter, a figure that was far from the 2.6 percent expected by the consensus of analysts.

This is the softest growth pace since the middle of last year, when the recovery from the pandemic began, and was also a long way from the 6.7 percent recorded in the second quarter.

Shortages, transportation bottlenecks, rising prices, and the delta variant of the coronavirus affected spending on goods and services.

The market expects a more challenging environment for Wall Street

The GDP price index slowed to 5.7 percent from 6.1 percent in the previous quarter. Wall Street did not feel bad about the music as there is some pressure left so that the Fed does not accelerate the withdrawal of stimulus.

The macro data were of uneven trend, since prices gave all the respite that GDP did not offer. It is also true that the market unofficially expected (outside the consensus) a growth of less than 2 percent.

“We remain bullish on the stock market for the rest of 2021 and into 2022, but the second half of next year will be more challenging if growth slows, inflation remains high and the Fed begins to raise rates, he said. Chris Zaccarrelli, Chief Investment Officer of the Independent Advisor Alliance.

The results jump to the scene on Wall Street

Therefore, investors relied on the good results of Caterpillar, Merck o Ford, which led the gains in the S & P500.

Thus, the manufacturer of machinery noted increases of 2 percent after surpassing the estimates of analysts with its figures.

Better still it went to Ford, which was up 12 percent after raising its forecasts and resuming dividend payments. Quite the opposite of eBay, which is trading down due to results that Wall Street did not like.

In the other markets, the dollar fell slightly, leaving the euro / dollar at 1.1665 units. In addition, the West Texas oil fall for the second consecutive day and was changed to 82.3 dollars per barrel.