Yesterday on Wall Street we witnessed the typical day of transition, in which many stocks took the opportunity to consolidate their recent advances, which did not prevent both the Nasdaq Composite and the S&P 500 from closing the day setting new all-time highs, while the Dow Jones, for the second day in a row, distanced itself from both and ended the session with a slight decrease.
Specifically, the Dow Jones fell 0.17% to 44,705.53 points, the S&P 500 gained 0.05% to 6,049.88 points and the NASDAQ 100 gained 0.31% to 21,229.32 points. in a session in which, once again, it was consumer discretionary, technological and communication services stocks that led advances, while those of a more defensive nature, such as utilities, basic consumption or property real estate, closed the day lower.
But at the opening of this Wednesday things not only do not change, but they endorse in trio, that path towards new historical highs in the indicators. Specifically, the Dow Jones rises 0.47% to 44,915 points, the S&P 500 advances 0.33% to 6,070 and the Nasdaq OMX appreciates in the first minutes of business by 0.65% to 19,588 points .
In this way, to close at the aforementioned levels, the S&P500 and the Nasdaq would add a new all-time high, but so would the Dow Joneswhich until now has its historical peak at 44,910 last Friday, November 29.
On the macro side, this morning we learned that the Mortgage applications in the US rise. The Mortgage Bankers Association (MBA) Composite Market Index, which measures the volume of mortgage loan applications, rose 2.8%, following a 6.3% increase in the previous week . For its part, the average interest rate on 30-year mortgages, used as a reference for the United States home loan market, fell to 6.69%. The data from the previous week had shown a level of 6.86%.
And today’s star data is the ADP private employment reporta prelude to the general report on the American labor market that we will release on Friday and which has performed below expectations. In November it reached 146,000 hires, slightly below the 150,000 expected. There has also been a downward revision of the October figure, to 184,0000 from the expected 233,000.
In the field of business news, Salesforce has exceeded expectations in its results for the third quarter of its fiscal year 2025, ended October 31, 2024. The company has highlighted an 8% year-on-year increase in its revenue, reaching 9,440 million, of which 8.88 billion come from subscription and support revenue, a segment that also grew 9% year-on-year. Regarding operating cash flow, an increase of 29% year-on-year was recorded, reaching 1,980 million.
General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp in China that will cost more than $5 billion in non-cash charges and write-downs, the Detroit automaker revealed in a federal filing. GM said it expects to reduce the value of its joint operations in China by between $2.6 billion and $2.9 billion. It also anticipates another $2.7 billion in expenses to restructure the business, including “plant closures and portfolio optimization,” according to the document.
Campbell’s has announced the appointment of Mick Beekhuizen as its new president and CEO, effective February 1, 2025. He will succeed Mark Clouse, who is leaving the company to become president of the Washington Commanders, a team of the United States professional American football league.
For its part, Dollar Tree rises 4%, since the shares of this discount chain have presented results above what the market expected. Its profit reaches $1.12 per share on revenue of $7.56 billion. That’s better than LSEG’s consensus estimates of $1.07 per share on revenue of $7.44 billion. The company also announced that Chief Financial Officer Jeff Davis would be leaving his position.
Falls close to the 15% that Foot Locker marks, once the sports shoe giant published results and income that did not meet expectations. Foot Locker also cut its full-year sales and profit forecast. The company cited a more promotional environment and weaker demand outside of key sales periods.
And Pure Storage’s rise of almost 21% after surpassing estimates for the fiscal third quarter and highlighting that it won a contract with a major technology company. In fact, Piper Sandler raises her recommendation to overweight from neutral.
We have also learned that Unitedhealth has canceled its investor day after learning that the CEO of its insurance unit, Brian Thompson, was fatally shot in Manhattan.
Other markets
Oil futures continue to climb as market participants weigh geopolitical tensions and the prospect of OPEC+ extending supply cuts against weak demand. He Brent reference in Europe gains 0.54% to 74.02 dollars a barrel, while the West Texas It advances 0.49% above $70.28.
In the currency market, the Euro Dollar falls 0.2% to $1.0488 while among cryptocurrencies, Bitcoin advances 2.17% to $95,762 and Ethereum rises 4.88%, to $3,717.
Finally, in the field of fixed income, the United States 10-year bond yield rises to 4.269%.
On the other hand, this afternoon the president of the Federal Reserve (Fed), Jerome Powell, will be interviewed in New York Times DealBook Summit, in what will be his last public intervention before the meeting to be held on December 17 and 18 by the Federal Open Market Committee (FOMC).
From Bankinter they point out that “although it is unpredictable what he can say, in any case he will express himself in a somewhat hawkish/harsh way if he has the opportunity or is asked. But this post-victory refocusing of Trump is discounted, so it will have little influence, unless he says something surprising, which is not likely.” In principle, The market continues to give a probability slightly greater than 70% that the Fed will lower its reference rates again by 25 basis points in December; Investors’ doubts now focus mainly on what will happen from that moment on.