Wall street it has risen by 1.5% on average (Dow Jones: + 1.51%; S&P 500: + 1.47%; Nasdaq: + 1.11%) after moderate sales last week and with the expectation that New York and other states begin their reopening after shutting down the largest economy in the world due to the coronavirus crisis.
The New York Governor, Andrew Cuomo, has stated this Sunday that the reopening will go in phases. The first will be led by the manufacturing and construction sector.
The second will involve return to work in retail business who, in turn, must design plans that include social distancing practices and have protective equipment available.
In relation to Covid-19, positive cases in the US have risen to 965,000 and the death toll has risen to almost 55,000, according to data from Johns Hopkings University.
"As these states begin to reopen, we will begin to see what the new normal will be from now on," say the experts at Chaikin Analytics. "The biggest risk for the US stock markets is that a premature reopening comes accompanied by an increase in contagion"they add.
At the business level, General Motors It has suspended its quarterly dividend and its share buyback program to preserve cash during the coronavirus pandemic.
About the results season, this week will be key because they present the great technologies such as Amazon, Microsoft, Alphabet, Facebook and Apple, who have led the gains in the historic Wall Street rebound since the March lows.
Forecasts anticipate that the technology sector will generate 23% of 2020 profits on the New York Stock Exchange, which explains much of the rebound registered by Nasdaq and the market as a whole.
ECONOMY AND CENTRAL BANKS
On an economic level, next Wednesday the First quarter GDP in the US (a 4.1% drop is expected) and the Federal Reserve (Fed) will publish its statement on monetary policy. Analysts anticipate that the central bank will be prepared to do whatever it takes to overcome the crisis.
In addition, on Thursday we will know the initial unemployment claims (the forecast is for them to rise by 3.5 million) and on Friday data on the American manufacturing sector (The consensus anticipates a collapse in April to 36.7 from 49.1).
On the other side of the Atlantic, the Ibex and the rest of Europe have rebounded as the confinements in the different countries relax. In Asia, stock markets have also joined the rises after the Bank of Japan has announced unlimited purchases of public debt to combat the virus.
TECHNICAL ANALYSIS AND OTHER MARKETS
It seems that the S&P 500 "It could take a breather in the form of consolidation before continuing to rally to the resistance of the 3,000 points, prices where the 200 sessions average, a key level ", he affirms Cesar Nuez, analyst at Bolsamanía.
"We will not appreciate a technical complication as long as it remains trading above the 2,637 points, first level of support"adds this expert. The selective has closed at 2,878 integers.
In the raw materials market, crude prices fall again after the sinking last week. The oil West texas falls 24% to $ 12.88, while crude oil Brent It has advanced 6%, up to $ 20.
In other markets, the euro appreciates 0.3% and changes to $ 1.0853, while the profitability of 10-year American bond it rises to 0.62%. And the VIX volatility index it falls 8%, to 33 points, after shooting in the worst moments of March above 85 points.
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