Solid earnings close to 2% (Dow Jones: + 2.04%; S&P 500: + 1.90%; Nasdaq: + 1.75%) in Wall street, which has continued with the Monday bounce since the 3,000 S&P 500 points. Investors buy in the heat of good data retail sales in May, a effective treatment against the serious cases of Covid-19 and waiting for a infrastructure fund endowed with 1 billion dollars that prepares the Trump administration.
The preliminary version of the Department of Transportation reserves most of the funds for projects such as roads and bridges, but will also go to the 5G wireless infrastructure and rural broadband, according to Bloomberg, who quotes people familiar with the matter.
It is not, at all, the first time that there has been speculation with this plan for infrastructure of the US Government. In April, President Trump, via Twitter, he asked Congress to take into account the importance of such a plan at a time like today.
In addition, investor attention is focused on UK researchers finding the first treatment to treat the most serious cases of coronavirus: dexamethasone. This has been confirmed by those responsible for the Recovery clinical trial, carried out in British lands among more than 11,000 patients.
The dexamethasone is not something new. It is a drug discovered in 1957 with anti-inflammatory effects that is often used against strong allergic reactions and auto-nunne diseases. One of its great advantages is that it is also cheap.
Another positive factor has been that of retail sales in the United States, which shot up in May at a record rate of 17.7% after collapsing in April by 14.7%, in what was the biggest drop in its history (although the data has been revised upwards since an initial drop in 16.4%).
The sales of the Control Group, which directly affect the calculation of GDP, they have recovered 11% and have far exceeded the forecast of 4.7%, after the 12.4% decrease in April.
"The reopening of the economy and the payments of government transfers citizens under the CARES Act fueled a stronger pickup in retail sales than most expected, "analysts at Berenberg say, referring to the $ 1,200 checks that the American Administration has paid to families with less income.
For his part, the Fed president, Jerome Powell, has commented that "a full recovery before the coronavirus is fully contained is unlikely"
The central bank announced Monday that it will buy directly corporate bonds to support the liquidity of the market and the availability of credit for large companies, which led to the rebound of the S&P 500, which was losing the support of 3,000 points but closed clearly above.
At the corporate level, analysts at Citi have raised Apple's price target to $ 400 from 310, the highest valuation on the market. The iPhone maker rebounds 2% and brushes its previous record of $ 354 set a few days ago.
In other markets, the West Texas oil It rises 3% to $ 38.30 in hopes of an increase in global demand. Besides, the ounce of gold advances 0.6%, to $ 1,737, while the euro it depreciates 0.56% and changes to $ 1,1256. Finally, the profitability of 10-year American bond up to 0.74%.
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