The optimism remains on wall street thanks to the hope that the lack of confidence will continue to advance in the US and other economies and encouraging the recovery of consumption. The President’s Determination Donald Trump for appeasing the protests unleashed after the alleged police violence that would have killed the life of the African American George Floyd, they also take effect.
Trump has announced the eventual intervention of the Army and “heavy hand” to end the most violent protests that in recent days are splashing the country. Not only because of the public order problem they pose, but also because are slowing the country’s entry into the ‘new normal’ imposed by the coronavirus crisis. Something that also translates into a possible delay in the long-awaited economic recovery.
With this scenario, the Dow Jones up 0.6% to 25,600 points. The S&P 500 it gains 0.2% and manages to establish itself above 3,000 points. Meanwhile, the Nasdaq It lags behind with losses of 0.1% that leave its graph in the environment of 9,500 integers.
This is how Wall Street opens
For the macroeconomic field, a report by the Congressional Budget Office published late on Monday stands out. It states that US gross domestic product (GDP) could be 3% lower than expected for the period 2020-2030. In dollars adjusted for inflation, this decrease would represent some 7.9 trillion dollars.
Fears of backing down in de-escalation find arguments such as drop in retail sales in the last week. The Redbook index indicates a contraction of 7.2% in the country’s stores, which represents a worsening of the conditions that had been generated in recent days.
Amazon breaks records in debt
In the focus of the session, move back to Amazon. The e-commerce giant has launched a $ 10 billion debt issue spread over bonds at different maturities to take advantage of the low prevailing interest rates. In some of these sections, the company has achieved the lowest financing costs ever recorded in the US corporate debt markets, according to sources referred to by the ‘Financial Times. On the three-year papers, it would have hardly had to assume a 0.4% return, only two tenths more than the country’s sovereign bonds.
The pharmaceutical sector is also at the center of many investors’ sights. In this case, it is due to a report by JP Morgan analyst Chris Schott, who notes that Eli Lilly, Abbvie and Merck, whose shares he recommends buying. Its shares rose 0.6%, 0.3% and 0.3% respectively.
Pfizer it remains outside this group indicated by the American investment bank. Even after the punishment suffered on Monday for some hopeless results in the study of a drug against cancer, the expert considers that it is not an investment opportunity. Their titles rebound, despite this disdain, 0.4%.