The caution prevails on Wall Street in the last session in May. The fear of a flare-up in tensions between Washington and Beijing A tale of the new security law designed for Hong Kong awakens old ghosts and dyes the New York Stock Exchange red. The macro data released this Friday doesn’t help either.
From the White House the door has been left open to withdraw the special regime of relations with Hong Kong which has largely allowed the former British colony to become the main financial and commercial hub of China and the Asia-Pacific. President Donald Trump plans to appear this Friday to give his vision on an issue that threatens to resurrect the trade war between the two powers.
With this uncertainty, Wall Street opens down, but without big setbacks. The Dow Jones falls 0.4%, below 25,300 points. The S&P 500 yields 0.2% but holds 3,000 points, although by a very small margin. The technological Nasdaq manages to rise 0.3% to touch 9,400 points against the current.
This is how Wall Street opens
From the macro field, several notable references arrive that in no case sweeten the perspectives of investors. The focus was on the April personal income and expense figures. Although the former have risen by 10.5%, the Economic Analysis Office explains that this is due to special aid to alleviate the worst effects of the coronavirus crisis. In this sense, expenses have fallen a sound 13.6%, beyond what economists have predicted.
To finish tightening the rope with China, the advanced data on the US trade deficit in April they show an increase of 7.2%, to 69.7 billion dollars from a previous reading of 65 billion. Again, the most pessimistic forecasts in the market are exceeded.
At the corporate level, the distribution chain Costco (-1%) is placed in focus after posting a net profit of $ 838 million at the end of its third fiscal quarter. Between February and May he registered earnings 7.5% weaker than in the same period last year, although the listed company attributes extraordinary expenses of 283 million dollars between disinfection of establishments and more salary costs.
Its main digital rival also captures the attention of investors. Amazon manages to earn 0.2% against the current once it has offered 125,000 of the 175,000 eventuals that it had been hiring in the US since March that stay on staff as permanent staff. The hiring would be full-time with effect from this June, as announced by the e-commerce giant.
Investors are also very aware of TwitterBecause there are news in the confrontation that seems to have been initiated by the social network and President Trump. Its shares fall another 4% now that the platform’s verifiers have pointed to a tweet from the Republican leader as Inappropriate for “Exaltation of Violence” which alluded to the possibility of shootings against Minneapolis protesters, who complain of police brutality in the case of the late African-American George Floyd.