The DOW JONES rose 0.08% to 43,864 points, while the S&P 500 rose 0.24% to 6,065 points. The NASDAQ 100 rises 0.45% to 20,017 points.
The New York market is coming off a bittersweet week. The DOW JONES fell 1.8% counting every day due to falls. In fact, the index It has already accumulated seven consecutive days of falls, all of which have elapsed since on December 4 it managed to close above 45,000 points for the first time in history. (45,014.04 points). The punishment since then is 2.63% in what is its worst streak of the year.
For its part, the S&P 500 fell 0.6% last week, declining in four of the last five sessions. The exception was the technological Nasdaq, which managed to rise 0.3% in the week, although in the end it could not hold the 20,000 points that it surpassed.
After a broad rally following President-elect Donald Trump’s victory in November, the stock market appears to have returned to a limited tech-led move in recent days.
“The breadth we’re seeing is really starting to dissipate a little bit. It is becoming a much more concentrated rally on a few names. And I don’t know how long it can last, but there is a possibility that it will last at least until the end of the year,” believes Joe Mazzola, chief trading and derivatives strategist at Charles Schwab, in statements to CNBC.
On the macroeconomic agenda, investors receive some economic data of some relevance, starting with the Empire State manufacturing index for December, which has fallen to a reading of 0.20, well below the 10.64 that the market had anticipated, in a sign of economic slowdown. Meanwhile, the US Composite PMI rises to a reading of 56.6 in Decembercompared to the previous reading of 54.9. The Manufacturing PMI stands at 48.3, below the expected 49.8 and 49.7 the previous month. The Services PMI reads 58.5, compared to the previous reading of 56.1 and above the 55.7 expected.
However, the main attraction this week is the meeting of the Federal Open Market Committee (FOMC) on Tuesday and Wednesday. Officials are expected to The Federal Reserve will reduce interest rates again by 25 percentage pointswith a probability of 97%, according to the CME Group’s Fedwatch tool.
In that sense, perhaps the interest is directed more to the new macroeconomic picture that the Fed analysts will announce on Wednesday and, above all, at dot plot published by the FOMC every quarterin which its members draw their medium-term expectations for reference interest rates.
In fixed income, always very sensitive to changes in monetary policy, bonds come from a week in which forecasts of fewer rate cuts in 2025 have caused a fall in prices and a rise in yields (they move inversely). Today the yield on the ten-year bond gives a small respite and offers 4.374%.
Microstrategy and Palantir enter the Nasdaq 100
In the business field, among the protagonists of the day are Microstrategy, Palantir and Axon Enterprise, which will join the Nasdaq 100 starting Monday, December 23.
Microstrategy is one of the big stars on the stock market in the last month and a half, since its Bitcoin purchasing policy under the auspices of Michael Saylor has given it wings with the boom of the popular cryptocurrency after Trump’s victory. So far this year, the value has accumulated an increase of 547%, 203% in the last three months alone. If the reference date is set to 2020, when Bitcoin was adopted as a treasury asset, the increase is 3,200%.
Today Microstrategy shares rise 3.9% on a day in which Bitcoin has set a new all-time high above $106,500.
Meanwhile, Palantir, which some analysts point out as the ‘new NVIDIA’, has accumulated a revaluation of 343% in the year and 109% in the last quarter. Axon Enterprise, for its part, has soared 156% so far this year.
The three stocks that will leave the Nasdaq 100 will be Illumina, Super Micro Computer and Moderna. The one that seems to be doing the worst with this decision seems to be Super Micro, which plummeted by 12.6%, heavily penalized especially by information from Bloomberg which says it has hired the investment bank Ebvercore ISI to help it raise capital. Meanwhile, Moderna and Illumina register few changes in the early stages of the negotiation.
Among the protagonists of the day is also Honeywell, which rises 2.5% in the New York morning. The company has announced that the board continues to review its business portfolio, including a possible separation of the aerospace business. The company expects to provide an update on the process when it releases its fourth quarter results.
The announcement comes after activist investor Elliott Investment Management called for a split of the company’s aerospace and automation businesses after acquiring a stake worth more than $5 billion.
As for analyst recommendations, Tesla sees Wedbush analyst Dan Ives reiterate his ‘buy’ advice and raise the electric car maker’s target price to $515 per share, up from $400 previously. It supposes a 18% upside potential vs. Friday’s close for a value that has risen more than 75% in the year. Up just under 1% at the opening.
Worse news for Ford Motor: Jefferies cuts it from ‘hold’ to ‘underweight’, citing concerns about excess inventories and current valuation. Shares start the week with declines of more than 3%.
In the raw materials markets, oil prices fell in this Monday’s session awaiting the Fed and the following increases last week. Benchmark Brent in Europe fell 0.40% to $74.19 per barrel, while US West Texas futures fell 0.94% to $70.62 per barrel.
The euro fell 0.22% in its exchange against the dollar, leaving the exchange rate at 1.0496 dollars for each community currency.