Sales in Wall street (Dow Jones: -0.41%; S&P 500: -0.78%; Nasdaq: -0.97%) after the weekly unemployment data, which have been slightly worse than expected and continue to show great job destruction. The S&P 500 is listed in full resistance of 2,950-3,000 points after the Wednesday uploads and the Nasdaq it is at 4% of its all-time high in February, as investors believe that the negative data will soon begin to improve due to the reopening of the world economy. However, overcoming these price levels is being difficult in the first attempts.
Last week, 2.43 million Americans applied for unemployment benefit, indicating that the destruction of jobs continues two months after the coronavirus pandemic caused the population to be confined.
The total number of unemployed people receiving unemployment benefits has increased to 25.07 million beneficiaries. This figure is the highest recorded by the American Department of Labor in the entire historical series and represents a weekly increase of 2,525 million people. The previous record was reached last week.
In any case, the New York indices show no signs of weakness, driven by the extraordinary stimulus measures applied by the Federal Reserve and Congress. Besides, the strength of the technology sector It has made Nasdaq the index of choice for operators.
On the other hand, the president Donald trump continues to harsh criticism of China. Through his personal Twitter account, he has blamed Beijing for "mass murders worldwideIn a series of tweets, he has accused China of spreading "pain and carnage" around the world, and has pointed to the president. Xi Jinping when saying that "everything comes from above".
At the business level, the department store chain Macy's plans to record operating losses between 905 and 1,110 million dollars between the months of February and April due to the impact of the pandemic.
In the economic scene, preliminary PMI data for May on the evolution of the manufacturing and services sector in the US they have exceeded the consensus forecasts, although they are still in contraction territory. Manufacturing PMI has risen to 39.8 from 36.1, up from the 38 anticipated. And the PMI services It has risen to 36.9 from 26.7, above the forecast 30.
In other markets, the West Texas oil it has prolonged its rally and is up 1.6% to $ 34.03 in hopes of a revival in demand. Besides, the ounce of gold It has dropped 1.5% to $ 1,725, while the euro it depreciates 0.25% and changes to $ 1.0950. Finally, the profitability of 10-year American bond it has fallen slightly to 0.67%.
On Wednesday, the minutes of the last Fed meeting showed that the central bank fears "the economic effects of the pandemic", which have created "a extraordinary amount of uncertainty and considerable risks for economic activity in the medium term. "
Another major fear of the Fed is a second wave of the virus at the end of the year. "In this stage, a second wave of the coronavirus outbreak, with another round of strict restrictions on social interactions and business operations, would cause a reduction in real GDP, a rise in the unemployment rate and renewed downward pressure on inflation next year, "the minutes said.
On a technical level, the S&P 500 has significant resistance in the "weekly bearish gap of 2,972 points", an area that has been acting as resistance since the April highs. The main world indicator has closed at 2,950 points. Clearly exceeding 3,000 points would open the way to seek again its historical maximum for February, in 3,393.50 points.
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