The American market has been weighing the events in Venezuela and this Thursday a new factor was added, the announcement of the increased military spending by Donald Trump. Thanks to this, the DOW JONES Ind Average It differentiates itself by going up by going up +0.56% to 49,272 points. While the NASDAQ 100 y S&P 500 correct -0.57% to 25,507 points y –0.02% to 6,919 points.
Trump announced this Thursday his intention to increase military spending by 50% to $1.5 trillion a year. This allowed Dow Jones to boost itself from the rest, since the others have a large presence of technology companies.
Additionally, Trump warned major US defense companies of block the buyback of shares and payment of dividends if they did not invest in the intensification of weapons manufacturing for arms operations. Northrop Grumman y Lockheed Martin they advanced a +2.34% to $590.49 and +4.32% to $518.35 respectively.
The US oil strategy in Venezuela remains the priority issue with the White House’s intention to supervise and control its oil revenues for years.
The US Secretary of Energy that the United States will maintain control «indefinitely.»
According to Yahoo FinancePresident Trump has set his sights on $50 per barrel as the price you would like US oil prices to trend towardswhich would alleviate energy costs for American homes.
The problem for the US oil industry? That the math doesn’t add up.
In the Permian Basinthe largest oil reserve in the continental United States and the crown jewel of American energy, equilibrium prices range between 62 and 64 dollarsaccording to data from the Dallas Federal Reserve.
He Jerome Powell’s successor to the Federal Reserve is on Donald Trump’s mindwho confirmed it in an interview with New York Times on Wednesday that the selection had ended.
«I have a decision in mind,» Trump told the Times. «I haven’t talked to anyone about it.» Although he offered a mention to Kevin A. Hassett, his main economic advisor. Who “certainly one of the people I like.”
When it comes to economic data we can find the Challenger Report on annual and December job cuts with -8.3 and 35,553K respectively, renewals of unemployment benefits were 1,914k compared to the expected 1,900K, new claims for unemployment benefits were 208K compared to the expected 213K and consumer inflation expectations (Dec) were 3.4%.
There was also 4 and 8 week debt auction (T-Bill) with a yield of 3,550% and 3,540% respectively.
Among the stocks that rise the most this Thursday we have Diamondback Eng (+5.13% to $147.66), WHAT (+8.47% to $25.37) and Home Depot (+2.97% to $359.41).
Diamondback Energy rose amid expectations and uncertainty regarding the price of oil in the face of the conflict in Venezuela and Trump’s statements about how much a barrel should be worth. Previous days, Citi cut the target price 180 to 178 dollars with a recommendation of comprar y Bernstein I cut it out 199 to 190 dollars with a recommendation of “outperform” according to Insider Monkey.
With respect to WHAT an important fund, Allspring Global Investments Holdingsincreased its participation very significantly (and869.7% more shares acquired) in its latest filing with the SEC, indicating growing institutional interest in the security according to Marketbeat.
Furthermore, it announced a quarterly dividend of $0.25 per sharewith attractive performance (around 4.3% annualized) according to Defense World.
Home Depot went mainly up the rise of the Dow Jones indexto which it belongs, and a general buying environment in the stock market according to Marketwatch.
On the side of losing stocks we have Seagate Hldgs (-7.72% to $284.47), Western Digital (-6.10% to $187.68) and Amgen (-3.37% to 330.11 dollars).
The fall of Seagate and Western digital has been due to the investor rotation from technology and storage firms to defense and energy sectors amid Donald Trump’s statements on defense investment, according to Investopedia.
The fall of Amgen responds to the same criterion of the previous ones according to experts, a rotation of sectors by investors.
Los Oil futures WTI they go up a +4.55% to $58.54 and the Brent crude oil up +4.77% to $62.82.
He Ororise a little less with +0.57% to $4,488 per ounce.
He EUR/USD falls a -0.21% until the 1.1652.
Bitcoin also corrects a -0.11% until the $91,031.
Regarding the 10-year US bond yield upload a +1.06% a 4.183 y at 30 years +0.79% to 4,853.