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Week of falls on Wall Street after the Biden plan and the results of the bank


Wall street has fallen slightly less than 1% after the biden's stimulus plan (investors bought with the rumor and sold with the news) and after the results of the big American banks, such as JP Morgan Chase, Citigroup and Wells Fargo.

JPMorgan it has earned $ 12.1 billion in the fourth quarter and has exceeded forecasts. Its shares, which were trading at record highs, have fallen 1.63%

The most negative part has been Wells fargo which has plummeted about 8% despite earning more than expected in the last quarter, since its income has disappointed the consensus, something similar to what it has presented Citigroup.

On the other hand, Exxon Mobil falls when an investigation is revealed by the SEC, the American Securities Commission.

Wall street closed with slight falls and the operators sold this Friday, considering that the new stimuli from biden, valued at $ 1.9 trillionwill boost economic growth, but will also weaken the country's fiscal position.

Above all because they will raise the US public deficit even more, since the measures do not include tax increases. Further, "it has been a case of buying the rumor and selling the news"says David Madden, analyst at CMC Markets.

On the economic agenda, December retail sales in the US they have been considerably worse than expected, which shows that the stimuli are much needed. The consumer confidence January, prepared by the University of Michigan.

In the corporate scene, the Chinese smartphone manufacturer Xiaomi They collapsed on Friday, after the Trump administration blacklisted it from alleged Chinese military companies.

At the monetary level, the president of the Federal Reserve (Fed), Jerome powell, commented this Thursday that still this is not the time to discuss the exit strategy from accommodative monetary policy. In an interview at Princeton University, he stated that a rise in interest rates will not come soon; and rejection suggestions that the central bank you can start reducing your bond purchases in the near future.

The economy is still far from its targets and the Fed sees no reason to alter expansionary policy "until the job is truly done and well done".

Powell stated that he will report when it is appropriate to discuss specific dates for "close the liquidity tap"; and added that you have to be "careful in communicating about asset purchases."

In other markets, the West Texas oil falls 1.3% to $ 52.88, while the euro it depreciates 0.17% and changes to $ 1.2135. In addition, the yield on the 10-year American bond eases to 1.11%, after the great rebound in recent days.

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