Wednesday, November 30

Wall Street tries to recover ground on the day of Biden and Netflix


Sales dominated again yesterday on the Wall Street stock market despite the fact that the accounts of giants such as Bank of America, Morgan Stanley and Procter & Gamble convinced investors: the DOW JONES Ind Average closed with a fall of 0.96% to 35,028 .65 points, the S&P 500 fell 0.97% to 4,532.76 and the NASDAQ 100 lost 1.07% to 15,047.84 points.

In terms of financial figures, Bank of America obtained an annual profit of 31,978 million, 79% more than in 2020 and the highest figure in its history, with billing stabilized at 89,113 million, only 4% higher; Morgan Stanley had a profit of 15,034 million dollars in 2021, 37% more than the previous year, driven by the good performance of its investment and wealth management businesses; and Procter & Gamble reported that in the first half of its fiscal year 2022 -which does not coincide with the calendar year- it obtained a profit of 8,368 million dollars, 2% more than the same period of the previous year.

Some figures on the rise, but they did not serve to calm the spirits of investors, who remain concerned about the impact of inflation on the results of companies and fear an adjustment in the Fed’s accommodative policy more forceful than desirable.

This Thursday, and with three hours left before the markets open, Wall Street futures are trading in positive territory. Specifically, the DOW JONES Ind Average futures rose 0.47% to 35,193.40 points, those of the S&P 500 advanced 0.58% to 4,558.60 and those of the NASDAQ 100 added 0.87% to the 15,179.00 units.

Today it is the turn of presentation of results to: Keycorp, Northern Trust, Travelers Cos, American Airline, Fifth Third Banc, Union Pacific, SVB Financial Gr (after closing), Intuitive Surgic (after closing), Netflix (after closing ), PPG Industries (after closing) and CSX (after closing).

The big tech pressure in Washington against the law promoted by a bipartisan group of senators to limit the market dominance power of Internet platforms, according to The Wall Street Journal yesterday.

In the fixed income market, the profitability of the US 10 year bond It currently touches 1.836%, a rise that remains below its highs from the previous session.

Today, January 20, marks one year since Joe Biden assumed the presidency of the United States. Throughout this year the US economy has faced many challenges, such as a persistent rise in inflation or the shortage of labor to cover the supply of a recovering labor market. The president of the United States celebrates a year in front of the White House with lights and shadows. The worst comes from their levels of popular approval, among the lowest since his arrival, with surveys in which, on average, does not reach 43% And the worst thing is that their figures remain below half of the population in favor since no less than August. Yes indeed, those of Donald Trump at that time improve: with just 39% approval.

Precisely, Joe Biden supports the work of the Fed to contain inflation, and yesterday he warned Russia of serious consequences if it invades Ukraine. Biden, on the other hand, claimed it was too early to commit to lifting US tariffs on Chinese goods, but his top trade negotiator, Katherine Tai, is working on the matter. “I would like to be able to be in a position where I could say that they are meeting their commitments, or many of their commitments, and be able to lift some of them, however, we are not at that point yet,” Biden said at a news conference. at the White House.

One Reuters poll on Fed actions notes that the US Federal Reserve will tighten its monetary policy at a much faster pace than thought a month ago to rein in persistently high inflation, which economists polled by Reuters now see as the biggest threat to the US economy. during the next year. The median of the forecasts of the survey carried out by Reuters between January 12 and 19 indicates that the Federal Reserve will raise its key interest rate three times this year, starting in March, to between 0.75% and the 1% by the end of 2022. A strong minority, 40 of 86 analysts, expect the central bank to hike at least four times this year, in line with current market prices. A total of 37 out of 51 believe the Federal Reserve would start reducing the size of its nearly $9 trillion balance sheet by the end of the third quarter.

other markets

Today Europe, after opening higher, quotes in mixed tone, pending the publication of the minutes of the last ECB meeting and the clues that may come from a possible tightening of its monetary policy, at a time when inflation continues to rise. The German DAX rose 0.10% to 15,825 points, the CAC 40 fell 0.20% to 7,158, the Ibex 35 added 0.23% to 8,795 and the FTSE 100 fell 0.05% at 7,585 points, while the Italian stock market rose 0.33% and the Euro Stoxx 50 advanced 0.13% at 4,273 units.

This morning we learned that Chinacut interest rates in their effort to prop up the economy. The People’s Bank of China (PBC) has lowered for the first time since April 2020 the reference interest rate to determine the price of mortgages. Specifically, the five-year benchmark rate for loans (LPR) fell from 4.65% to 4.6%, according to Efe. For its part, the one-year LPR, which is used to set the price of new loans -generally for companies- and those with variable interest that are pending repayment, fell from 3.8% to 3.7%. This is the second consecutive reduction of this last indicator, since in December the BPC had reduced it from 3.85% to 3.8% after keeping it intact for 20 months. .

The Petroleum This Thursday the scale of recent weeks stops. Right now, Brent futures fall 0.23% in the 88,24 dollars a barrel, while those of West Texas leave a slight 0.04% in the 85,77 Dollars.

The oil market is headed for surplus this year as the impact of Omicron dissipates, according to the IEA monthly newsletter (International Energy Agency). OECD oil inventories fell in 2021 to their lowest level in 7 years. The oil production of the 23 countries that make up OPEC+ could increase this year by 4.4 M b/d. Demand could reach pre-Covid levels in 2022. The Agency increased its 2021 demand growth forecast by +200,000 b/d to 5.5 M b/d. On the other hand, the energy minister of the United Arab Emirates pointed out: “OPEC + cannot solve the problem of global oil supply by itself.”

Bitcoin is trading with increases of 0.11% in the $42,090.8. The Chairman of the US Securities and Exchange Commission, Gary Gensler, commented yesterday that the SEC remains focused on regulating cryptocurrency exchanges.

On the macro agenda USA, the day’s data will be weekly jobless claims, the Philadelphia Fed jobs report and existing home sales.



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