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Home » Wall Street moves with inflation and earnings as benchmarks

Wall Street moves with inflation and earnings as benchmarks

Wall Street is regaining support in the second trading session of the week and posted gains in Tuesday’s session. The DOW JONES Ind Average is up 0.33% at this point to 34,056.94 points, with an S&P 500 up 0.23% to 4,419.22 points and the Nasdaq OMX up 0.10% at this point to 13,700, 12 points increases.

All this while waiting for the week’s most important data, which will be announced tomorrow and which the market is eagerly awaiting to assess whether the US consumer price index will correct enough or Further correcting the extent of this will require further interest rate hikes in the USA, as proposed by the Fed.

In the general index it is expected a sharp decline in the annual rate to 3.1% from the previous reading of 4%. ANDThe inflation that investors follow the most these days is what we’re talking about the most stable, underlying inflation. It is expected to rise by 5% compared to 5.3% in the previous month.

Today, with few references, investors will also wait for the arrival of the business results, which unofficially start their season with banks on Friday, and with some important companies such as Pepsico or Delta Airlines, next Thursday.

In terms of credentials, pundits are beginning to comment on what to expect and what to expect on Wall Street in the second half of the year. JPMorgan, for example, believes that the market is far from cheap, discounting the hottest technologies in general and artificial intelligence in particular. He estimates that the P/E (price-to-earnings) ratio is 17.4x, compared to the October low of 14.5x for the 12-month S&P 500.

All of this while expectations for the market’s flagship indicator aren’t the best right now. In the case of Citi, the company has downgraded its US equity rating from overweight to neutral. We expect the S&P 500 to fall 9% and end the year around the 4,000 level. They believe that large-cap stocks could start to take profits and that the risks of a US recession could hurt the sector.

In terms of value, JPMorgan Chase shares are currently the standout after Jefferies’ buy rating improved. largely thanks to its strong balance sheet and higher interest rates. with advances of 1.5%.

In addition to Amazon shares, his two-day Prime Day is also in the middle of the summer sale, once Wells Fargo added the company to its Signature Picks list. The company’s selection reflects the best expectations the company has for its web services and revenue growth.

It’s also news that 3M, after Bank of America placed its shares with an improvement to neutral from the previous underweight. The company emphasizes that the company has positive momentum related to the restructuring and the planned carve-out of its healthcare business. The market is up more than 2%.

On the downside, airline JetBlue Airways stands out, shedding more than 2% after Evercore ISI downgraded the airline to underweight on concerns over its balance sheet and the recent strong rebound in its shares.

Among the biggest gainers is Zillow Group, which is up more than 4.5% since the close yesterday after overweighting its shares from neutral to Piper Sandler and setting a price target of $62 per share, indicating its stock’s market potential lends.

And up to the changes announced in the Nasdaq 100 weights and will go into effect on July 24th. Details will not be announced until this Friday. This is a rebalancing intended to reduce the specific weight of the most important companies in the index, with the aim of reducing the index’s over-concentration to a few stocks. And it is that currently, as Bankinter recalls, only 7 companies make up 555 of the entire index.

If we look at fixed income, we see that the yields on bonds have caused positions to decline due to some optimism on Wall Street. The US 10-year bond is trading at 3.96%, falling below the psychological 4% mark, while the 2-year bond also declines to the 4.837% level after marking its highest level in the last 16 years, surpassing 4.937%.

As for oil, benchmark barrel futures are rising on both sides of the Atlantic as we consider that traders are focused on the impact of supply cuts at the world’s largest oil exporters. Saudi Arabia and Russia and the situation of a weaker dollar, which is also favorable for them.

aceí Brent futures traded up 0.31% to $77.92while West Texas futures were also up 0.38% to $73.29.

In the forex markets we see that The euro-dollar is at 1.1006 and it breaks this level again with the greenback’s weakness over the past few hours falling to 101.68 in the dollar index.

In Asia, the broader MSCI index of Asia-Pacific stocks ex-Japan rose 1.6%. Australian shares up 1.23% Japan’s Nikkei index gained 0.14%For its part, China’s CSI300 index rose 0.63% in the afternoon session. Hong Kong’s Hang Seng Index rose 1.75%.

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