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Home » Wall Street: The Dow Jones is back in the red and awaits the Fed minutes

Wall Street: The Dow Jones is back in the red and awaits the Fed minutes

The DOW JONES fell 0.53% to 34,237 points, while the S&P 500 fell 0.41% to 4,437 points. The NASDAQ 100 fell 0.28% to 13,777 points.

Last Monday with a half-day session the Dow Jones rose 0.03% to 34,418.47 pointsthe S&P rallied 0.12% to 4,455.59 points and the Nasdaq rose 0.21% to 13,816.77 points, in a fresh upbeat session to start the semester after the good performance of the first, in the the Nasdaq posted its biggest first-half gain since 1983. in the last 40 years.

We will gladly consider references may factory orders, in which an increase of 0.6% is expected, which is more than four tenths of the growth of the previous month, and above all on the references that differ from it the minutes of the last meeting of the US Federal Reserve Open Market Committees in which this “pause” was reflected in rate hikes across the Atlantic.

Although the experts are expecting new hikes from the Fed in the second half of the year that has just started. To gather more clues for investors, it will be important to listen to the words of John Williams, the President of the New York Fed Who will speak that day?

Link Securities’ Juan J. Fdez-Figares points out that “the fact that the last few weeks of June have been filled with interventions and comments from members of the FOMC, particularly its chairman Jerome Powell, who has been very active, makes it difficult for these protocols to “surprise” investors.

In addition, it emphasizes that “we expect them to ratify the intent of the FOMC.” raise its benchmark rates again in its month-end meeting (days 25 and 26). and that they will “open the door” for a new surge after the summer, as long as inflation does not fall as much as would be desirable during that period. Nothing new as the June dot chart, which FOMC members use to plot their interest rate expectations, showed two fresh 25 basis point hikes for the remainder of the year.”

Investors will also monitor the impact on semiconductor companies tensions between China and the US, with Beijing’s response with export restrictions on two key metals, gallium and germanium. Currently, NVIDIA, Microsoft, and Apple are opting for the falls.

All of this while Netflix previously improved its opening-stage positions by over 1.2% Upgrading Goldman Sachs recommendation. The analysts are upgrading the stock’s rating from “Neutral” to “Overweight” while increasing the rating up to $400 from $230 ahead of its price target. They believe the improvement reflects:overall positive current operating performance for Netflix and continued positive operational momentum into 2024/2025.”

Another protagonist of the morning is Rivian. The electric vehicle maker is up more than 6.5% after reporting 12,640 deliveries in the second quarter. Deliveries were up 59% sequentially, well beating analysts’ expectations of 11,000 vehicles.

Shares of Hertz Global are up more than 1% after Jefferies began coverage of the car rental company with a buy rating, citing the potential for higher margins.

Crypto services company Coinbase fell more than 2% after Piper Sandler downgraded its stock recommendation, noting that the rise in crypto prices has not slowed despite the recent market rally following the SEC lawsuit, prompting a surge in business volume have. The company also expects Coinbase to report lower trading volumes in the third quarter.

A day of recovery for New York-listed Astrazeneca shares, up 3% after falling 8% on Monday as it announced preliminary results of its Phase III treatment for lung cancer. The company said the overall survival data was “immature” and the results were not statistically significant, but the study is continuing.

As for oil, we see eyes on OPEC’s Energiewende seminar and possible news of production cuts in Saudi Arabia and Russia in August. at present Brent futures were up 0.55% to $76.53 a barrel and West Texas is up 0.72% to $71.74.

Morgan Stanley has lowered its price expectations for oil for the remainder of the year and forecasts a market surplus for the first half of 2024 as the company expects supply to grow faster than demand next year. So heBrent price estimate for the third quarter drops to $75 from $77.50 earlier and has lowered its estimate for the fourth to $70 from $75 earlier. For the first quarter of 2024, she puts it at $70.

As for debt, the 10-year US Treasury is placing at a down yield of 3.841% and the 2-year is placing at 4.894%, also with declines In the US, the yield curve is widening Many experts point out that the likelihood of a recession is greater.

On the foreign exchange markets Dollar index shows slight advance to 103.13 and the euro-dollar ratio remains little changed the 1,090 units.

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