Wall street You have registered mixed sign (Dow Jones: -0.03%; S&P 500: + 0.03%; Nasdaq: + 0.14%) after what China have assured that you have controlled the spread of the coronavirus, although it has already caused 17 deaths and hundreds of infected. The positive catalyst has been the good reception that the results of IBM, presented last night after closing; and also the rises of Tesla Until new records. In negative, Boeing has fallen hard again and Netflix has quoted its accounts down. The S&P 500 and the Nasdaq they have set new intraday highs, but they have not kept them at close.
The US market ended last session with moderate falls After knowing the first contagion in the US, although health authorities say that the affected patient, 30, "presents little risk." All this on a day prior to the meeting of the European Central Bank (ECB), the first of the year; and that precedes that of the Federal Reserve (Fed), which will be held next Wednesday.
In negative, a new warning of Boeing (-1.4%) on the 737 MAX program has weighed on the Dow Jones, just like it did on Tuesday. Further, Netflix It has fallen 3.5% after publishing its results.
In addition, the founder of Amazon (-0.2%), Jeff Bezos, also owner of the Washington Post, is news because, according to a report by the FTI Consulting consultant commissioned by himself, the crown prince of Saudi Arabia, Mohamed Bin Salman, hacked his iPhone to spy on him before the murder of Jamal Khashoggi, newspaper contributor.
In positive, IBM has advanced 3.4% after exceeding forecasts with its fourth quarter accounts. Investors value the good evolution of their income, driven by the business in the cloud. Further, Tesla It has continued with its rally, has shot 4% and has exceeded $ 100,000 million valuation.
TRUMP RETURNS TO CRITICE THE FED
For his part, the president of the United States, Donald Trump, has revived the threat of a trade war with the European Union (EU), returning to the possibility of imposing tariffs on European car exports. He has also said that the coronavirus is controlled and has asked the Fed that lower interest rates further due to the strength of the dollar.
As he has commented from the Davos Economic Forum, the economy would grow to a 4% rate and the Dow jones would quote in 40,000 points if it weren't for the rate hikes made by the Fed in 2018. "If we hadn’t made the big interest increase, I think GDP would have been close to 4%. And we could see the Dow between 5,000 and 10,000 points above of the current levels. But that was killed when the guys went up. It was a big mistake, "he said.
THE CASH "IS GARBAGE" FOR RAY DALIO
"Everyone can borrow at very low interest. There are still large amounts of cash. Everyone is afraid of being outside and everyone wants to enter. Cash is trash"in the current scenario.
They are the words of the legendary Ray Dalio, founder of one of the most important hedge funds in the world, Bridgewater Associates, during his participation in the World Economic Forum of Davos.
His advice to investors is "have a diversified, balanced and global portfolio"For example, we must have" a little gold "as a" diversifying "element in our investments. But at the same time it considers that another of the most interesting investments is all that has to do with disruptive technology companies.
In other markets, oil West texas falls 2.8%, to 56.70 dollars, while the ounce of gold falls 0.05%, to 1,558 dollars. Crude discounts the forecast of an excess supply in the market made by the International Energy Agency for the first semester The agency has calculated an excess of 1 million barrels.
For its part, the euro 0.05% is appreciated and changed to $ 1.1088. Finally, the profitability of 10-year American bond falls to 1.77% and the 2-year bond falls to 1.53%.
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