Sharp rise on Wall Street in a week marked by a drop in the CPI
Wall Street closed Friday with moderate gains (Dow Jones: +0.33%; S&P500: +0.40%; Nasdaq: +0.71%; Nasdaq: +0.71%).) depending on the results of the survey big american bankThe day was initially greeted with selling from investors as their forecasts for 2023 were unconvincing, although ultimately the day was tinged with a positive tone. green. The indices closed Thursday with modest earningsafter learning of the existence of inflation in the United Stateswhich moderated in December, in line with expectations.
On weekly termsthe main indices recorded strong increases, with a The Dow Jones, which rose 2%.and one S&P500 which closed the last five days with an increase of 2.67%although the most successful was the Nasdaqwhich has seen an increase of 4.82%.
JP Morgan, Bank of America, Wells Fargo, BlackRock, Citigroup and Bank of NY Mellon. published their figures before the opening.
In the case of JP Morganwhich beat forecasts in the fourth quarter, its shares gained 2.50% after the bank forecast a 1.5% rise in revenue. net interest margin for 2023 Net interest margin for 2023 is $73 billion, which is lower than the consensus expectation of $74.4 billion. During the quarter, net interest income jumped 72% to $20 billion.
For its part, Bank of America there Wells Fargo also beat forecasts, and their shares managed to close in positive territory with gains of 1.5 million euros. 2.23% and of 3.28%respectively.
“We ended the year on a strong note, increasing year-over-year earnings in the fourth quarter by €1 million. downturn in the economic environment“The CEO of Bank of America acknowledged, Brian Moynihan.
Finally, the actions of Citi are up 1.67% after the bank posted a 21% drop in fourth-quarter profit to $2.5 billion.
As well, Apple made the news because its CEO, Tim Cookwill reduce his variable salary by 40% in 2023 due to the negative performance of the stock market last year.
On another side, You’re here continues to lower the price of its cars in the United States and Europe to stimulate sales, due to a slowdown in demand. Moreover, Guggenheim cut its sell board because it considers the consensus forecast for its earnings to be too high.
CPI VALUATION AND FED POLICY
Following the IPC, experts from Barclays cut their rate hike forecasts for the next meeting of the European Central Bank (ECB). Federal Reserve (Fed) from February 1 to 25 basis points from its previous estimate of 50 basis points.
Its forecast calls for two further rate hikes of 25 bps in March and Maywhich would raise the price of silver in the United States to 5%-5.25%. They also expect the Fed reduce rates by 25bp in his ” two final meetings in 2023“at 4.5%-4.75%.
Along the same lines, Berenberg experts commented that “December marked a third consecutive month of increased activity for the company.” weaker inflation datawhich is likely to tilt the Fed towards our recommendation of a 25bp hike.”
However, they add that inflation risks “remain on the upside, and”. the Fed is likely to maintain its hawkish stance. until real signs of economic weakness appear”. In this regard, data from weekly unemployment showed that the labor market is still very tight.
This Friday, the inflation expectations Consumer inflation expectations from the University of Michigan, which for the short term (12 months) fell for the fourth consecutive month in January, and settled at 4%.after reaching 4.4% in December. The evolution of export prices, which fell 2.6% in December, and import prices, which rose 0.4% during the month, were also made public.
TECHNICAL ANALYSIS AND OTHER MARKETS
The website S&P500 “started the year giving a sign of strength in its series of prices, which makes us optimistic about its evolution in the coming weeks”, explains César Nuez, analyst at Bolsamanía.
“The selective has succeeded in crossing the resistance at 3,889 points. after a few weeks of lateral movement. This makes us think of an upcoming attack of the key resistance of 4,100 points. Its performance at these levels is essential,” adds this expert.
“If it manages to break through these levels, it is very likely that we could see an increase in electricity prices. trend change which could lead to an attack at the level of the 4,300 stitches. All of this would be reversed with the abandonment of support at 3,764 points, the lows of last December,” concludes Nuez.
In other markets, oil West Texas increased by 1.96% ($79.92) and the Brent rose 1.52% ($85.32). On the other hand, the euro depreciated by 0.15% ($1.083) and the ounce of gold rebounded 1.29% ($1,923). Furthermore, the performance of the US 10-year bond increased to 3.50% and the bitcoin won 2.66% ($19,464).