A mixed opening is expected on Wall Street, these are the factors to consider:
1- The cyclicals of the Russell are rising much more as it happened yesterday, while the Nasdaq presents moderate declines and the SP 500 is with moderate increases.
2- Another day when we are going to open with the SP 500 hitting 4400 and the Nasdaq hitting 15,000. But they can’t get through, they’ve tried many times already. If they fail, the paper can appear at any time, but if they happen to pass we should expect a fairly significant increase in the increases.
3- The efforts of the Chinese government to calm their spirits in their markets are helping a lot on Wall Street to bring calm. This factor is very important.
4- The digestion of yesterday’s FED meeting and especially of Powell’s press conference is also taking place. The market continues to interpret everything in Disney World code and has clearly considered that the meeting was dovish. It is true that, given all that was said yesterday, it seems unlikely that at the Jackson Hole meeting, as had been feared until now, there will be talk of tapering.
But the dangerous veiled warning that inflation might be more permanent than they all believed was ignored.
5- We have had a very bad GDP data very far from forecasts. A + 6.5% when a + 8.4% was expected. It is true that the inventory drop figure has distorted a lot with a fall of 1.3 points subtracted from the final figure, but even so, it is still weak and if we add the weekly unemployment figure that has been well above expectations , everything continues to tell us that Hartnett was right and that we are facing stagflation.
The growth of the virus is a danger to recovery.
The price data that are given with GDP is hair-raising, moving to the highest level since 1983.
Low growth and high inflation, that is, stagflation. We believe that the market is being too optimistic, especially in simply believing the promise / prophecy of the FED that inflation is transitory, I am very afraid, that it will not be …
At the moment, not much attention has been paid to this GDP data.
6- News of loose values according to .:
Ford Motor Co jumped 4.9% in pre-market trading and was on track to open in a two-week high as it raised its profit forecast for the year.
Industrial Boeing Co and Caterpillar Inc, and banks such as JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc gained between 0.7% and 1.4%, a day after the Federal Reserve said it was not yet time to begin to revert to its era of massive pandemic. monetary stimulus.
Facebook Inc fell 3.2% as it warned that revenue growth would “slow significantly” following Apple’s recent update to its iOS operating system that would affect the social media giant’s ability to target ads.
Yum Brands Inc, owner of KFC, on the other hand, gained 2.8% after beating quarterly sales expectations.
China’s Didi Global jumped 17.6% after a report said it was considering going private to placate Chinese authorities and offset investor losses since the public transportation company is listed in the United States. Didi denied what he called a “rumor” that it might be private.
Later in the day, attention will turn to shares in Robinhood Markets Inc, which is scheduled to begin trading on Nasdaq under the symbol “HOOD” after the company raised $ 2.1 billion in its initial public offering on Wednesday. .
7- The dollar remains weak as a consequence of the fact that the market, as we mentioned above, considers the Fed’s speech yesterday dovish.
8- The bonds with some moderate drops, the yield of the 10-year bond at 1.26%
Jose Luis Carpathians