Wall Street indices open with gains on the New York Stock Exchange, after the New York parquet closed yesterday his worst day since March, given the pessimism of the Fed and the OECD on the economic recovery after the coronavirus crisis.
To the bad macroeconomic forecasts is also added the fear of a possible second wave of coronavirus infections in the USA. Any indication that any state is once again opting to impose confinement measures would be a severe blow to Western exchanges.
In yesterday’s session on Wall Street, the Dow Jones fell 6.9%, the S&P 500 5.89% and the Nasdaq 5.27%. The New York parquet gambled massively on sales after several days of optimism for the economic reopening of the US in view of an increase in covid-19 infections in the states of Texas, Arizona, California and Florida, which raises fears of an outbreak. .
The cases of coronavirus registered in the country now reach 2 million and the deaths from it 111,000, according to the latest data from Johns Hopkins University.
Markets fear states will reimpose business freeze and confinement measures to prevent the spread, though Treasury Secretary Steven MnuchinHe said yesterday that the country cannot afford to close its economy again because the damage “would be greater.”
Furthermore, Mnuchin indicated that he is prepared to return to Congress to debate new relief measures and that had discussed with President Trump the idea of additional stimuli, although he pointed out that no formal decision had been taken in this regard and recalled that Another trillion dollars will be injected into the economy in the next month.
Likewise, Mnuchin pointed out that while local financing will be discussed bilaterally, he is concerned that it could lead some states to subsidize others.
On the other hand, Mnuchin added that the US is paying close attention to China maintaining its commitments reached in the Phase 1 trade agreement. He suggested that his department could allow some of the money from the Check Protection Program (PPP) to be used to repair the damage done to many businesses during the recent riots.
The dollar loses ground today against the euro following yesterday’s recovery of the greenback after initial weekly jobless claims were better than expected, falling to 1.54 million. The US producer price index was also better than expected with 0.4% in May compared to the estimated 0.1% and a previous figure of 1.3%, although this figure may have been enough to cut it again. risk appetite.
On Wall Street the main appointment of today’s session will be the publication of the first consumer confidence surveys in June with the University of Michigan, which is expected to improve for the second consecutive month but to levels well below those prior to Covid-19. Likewise, import price data will be disclosed.
Crude prices manage to turn upwards after collapsing around 8% yesterday struck by renewed concerns about the destruction of demand as new cases of coronavirus rise globally, as oil inventories in the United States peaked.
Tesla, Adobe … and other values that are in the news on Wall Street
At the corporate level, Morgan Stanley has reduced the recommendation ofTesla to underweight, from the same point of view as the market, by different factors, including the need for more capital, short-term pressure on demand and technological competition.
Adobe It has beaten estimates for $ 0.12 a share by announcing a profit of $ 2.45 a share. The software vendor’s revenue was below estimates.
BMO Capital has reduced the recommendation on the securities of Caterpillar to “same as the market” from overweight, saying that the financial contraction at the corporate and government level should lead to internal improvements in the vlaor.
Lululemon It has announced quarterly earnings of 22 cents a share, slightly below estimates. The company has recorded the first drops in profit in three years, although it managed to offset the losses in some of its stores with a 70% increase in its digital business.
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