Wall street It has registered outstanding increases (Dow Jones: + 2.39%; S&P 500: + 3.06%; Nasdaq: + 3.95%) after closing this Monday with mixed sign. Investors are still pending the coronavirus crisis, which is yielding positive data on the slowdown of the pandemic. In addition, although in the background, the other relevant appointment has been the beginning of the season of results, with the accounts of JP Morgan and Wells Fargo two of the main banks in the country. Thus, the New York Stock Exchange continues its historic rebound, as the S&P is up 30% from March lows).
And that the banks have not had a good day. JP Morgan has been the first entity to be accountable to the market and it has dropped 2.7% after cutting its dividend by 70% and warning of a future increase in delinquencies, for which it has provisioned almost 7,000 million dollars.
Secondly, Wells Fargo It is down 4% after posting a BPA of just a penny through March due to the provisions it is carrying out for the virus.
On the positive, the technology sector continues to be the most bullish. Good proof of this is the behavior of values like Netflix, Tesla and Amazon. The giant of electronic commerce has set new all-time highs since his business has been driven by the Covid-19 crisis; and the electric car maker has risen 60% in the last six sessions.
In relation to the Covid-19, Donald trump He has announced that this Tuesday he will announce the creation of one or more committees that will be in charge of reopening the North American country in the coming weeks. So far, the US has reported 584,000 positives and more than 24,700 deaths, according to data from the Johns Hopkings University.
JIM CRAMER AGAINST ALBERT EDWARDS
Regarding the outbreak, the prospects are getting better and better. Jim Cramer, Wall Street guru, has recognized before the CNBC that "surely we can reopen the American economy prematurely." Trump, in turn, assured this Monday at a press conference that there are signs to be optimistic.
Don't think the same Albert Edwards, the well-known strategist of Société Générale (SocGen) Nicknamed the 'always bearish' for his negative views on the market, he considers that the stock market recovery since the March lows is just a rally caused by extreme overselling which will be followed by further steeper falls in the bags.
"The stock market recovery is raising hopes among investors that the worst of the bear market has already passed. We, like many others, suspect that this is nothing more than an initial stage, a rally within a bear market before the actual bear market begins"he explained in his last report.
In other markets, the West Texas oil falls 7% to $ 20.75, because the market considers insufficient the historic production cut announced by the OPEC, close to 10 million barrels. Forecasts indicate that world demand has dropped by about 15 million, so there is still an oversupply globally.
Furthermore, the euro 0.65% appreciates and changes to $ 1.0983, while the profitability of the 10-year American bond slightly up to 0.75%. And the VIX volatility index it falls 8%, to 37 points, and continues to indicate more and more calm in the stock markets, after shooting up in the worst moments of March above 85 points.
WALL STREET TECHNICAL ANALYSIS
On a technical level, the Dow Jones accumulates a rebound close to 30% from the March lows and the S&P 500, the world's leading index of 25%. And on the other side of the Atlantic, it is said that when the indexes bounce above 20% from lows, it is because we are at the start of a ‘bull market’.
"The problem is that we still no figure back of any kind and experience has shown us in previous crises that it is normal for us to attend a relapse towards the lows. And that's where we have the key, "he says. José María Rodríguez, analyst at Bolsamanía.
"The only thing that somehow makes me doubt the possibility of going back to the lows is that many analysts expect this relapse, and we already know that by the Theory of the contrary opinion, the market is specialized in doing the opposite of what the great majority thinks. For now and as a snack we will see if the S&P 500 is able to clearly recover the MM200 weekly"adds this expert
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