The Dow Jones index drops 0.24% to 45,524.29 points. Nike is the most bullish value 8+0.5%), while Boeing is the most bassist (-0.8%). The S&P 500 goes back 0.23%, at 6,451.91 points, while NASDAQ drops 0.24% to 21,444.91 points.
Wall Street returns from the weekend with the memory of the strong advances last Friday, which they carried To Dow Jones to climb no less than 846.24 points, or 1.89%, up to 45,631.74, a new closing maximum. The S&P 500 rose 1.52% to 6,466.91 points, remaining slightly below 6,468.54 points of its historical maximums, in force since August 14. Meanwhile, the Nasdaq Composite, with a strong technological component, won 1.88 %, closing the session at 21,496.53.
The actions rose after the expected speech of the president of the Federal Reserve, Jerome Powellin Jackson Hole, Wyoming, in which he indicated that the Central Bank could begin to make the monetary policy more flexible next month. Thus, in his speech Powell presented the reasons that could lead to the Central Bank to resume its process of declines of types by stating that, with monetary policy in restrictive territory, «the perspectives of reference and the changing balance of risks could justify an adjustment of its position of monetary policy.»
With these words and their reference to the «changing balance», «Powell made reference to the fact that, from now on, it will be the weakening of the US labor market and not so much, at least as now, inflation, which focuses the attention and concern of the Fed,» explains Juan J. Fernández-Figares, of Link Management.
After this intervention, the expectations of a cut of types of 25 percentage points in September rose to about 84%, according to the Fedwatch tool of the CME Group, from about 75% only one week ago.
But this does not mean that investors do not have to continue pending inflation. This week, on Friday, the Personal Consumption Price Index (PCE) of the month of Julywhich is the most followed price variable by the Fed. Analysts expect the interannual growth of the PCE to remain at levels similar to those of June (2.6%) and that that of their underlying has rebounded slightly (2.9% vs. 2.8% in June).
Today, investors have known construction permits, which fell 2.2% in July. Julio’s new housing sales will also be published.
Nvidia, the main protagonist of the week
The other great focus of the week is on Nvidia, which will present its quarterly results on Wednesday 27 at the close of the market. Analysts expect the world’s most valuable company to put on the table Income of 45.8 billion dollars for the second quarterwhich represents an interannual growth of 52.4%, which represents a significant deceleration with respect to the previous quarters. Nvidia forecasts suggest revenues between 44,100 and 45.9 billion dollars. Meanwhile, the market provides that the benefit (GAAP) be 23.2 billion dollars, which represents a growth of 39.6% compared to the previous year.
«The demand on Nvidia is very high,» recall Bankinter analysts, «so that, for several quarters, any aspect in the publication of its results that may seem an indication of vulnerability is negatively exaggerated and translates into a benefits on valuewhich ends up infecting technology as a whole. «However,» it is usually a transitory effect, so that if it happened, we would interpret it rather as an opportunity, «the experts add.
In fact, today Stifel reiterates his recommendation to ‘overponear’ For Nvidia and elevates the target price of 202 to $ 212with a 19% potential in front of Friday’s closure. Analyst Ruben Roy believes that the «acceleration of the general demand» of the company’s GB300 platform could be an impulse for value.
Other technology such as Dell and Marvel will publish their results on Thursday.
With more than 474 companies of the S&P 500 having published its results of the second quarter, the average increase of the benefit per share is 12.9%, compared to the 5.8% expected before the publication of the first company. According to the calculations of Bankinter analysts, 80% of the companies beat results, disappoint 16% and the remaining 4% is in line with the expected. In the first quarter, the benefit per share increased by 13.6%, compared to the 6.7% expected before the publication of the first company.
Outside the results, Intel’s actions rise more than 3.7% in the opening, adding the 5.5% increase on Friday, after the US government has confirmed the acquisition of a 10% participation In the chips manufacturer. «Great news: the United States now has 10% of Intel, one of our large American technology companies,» said the secretary of Commerce, Howard Lutnick, in an X publication.
Keurig Dr Pepper shares fall more than 7.5% after announcing an agreement to buy the Dutch Café Jde Peet’s company for 18 billion dollars. After the formalization of the agreement, Keurig plans divide their divisions of drinks and coffee into two independent companies that cite on the stock market United States. This de facto dismantling operation would be the fusion of 2018 between Keurig and Dr Pepper Snapple.
In raw material markets, Oil prices move up at the beginning of the week. Not only seem to have dissipated the hopes of a peace between Russia and Ukraine, but that attacks with Ukrainian drones to Russian energy infrastructure make them fear that the supply is affected. The future of the American West Texas advance 1.04% to $ 64.32, while Brent International reference oil rises 0.83% to $ 67.78 per barrel.
The euro fell 0.23% against the dollar until leaving the exchange rate at $ 1,1696 for each single currency.
In fixed income, the profitability of the US bonus at ten years rises slightly to 4,286%.