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Wall Street returns to calm and closes with slight falls awaiting Powell

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Wall street slight falls have been recorded (Dow Jones: -0.27%; S&P 500: -0.20%; Nasdaq: -0.71%) and takes a breath after the S&P 500 and Nasdaq close this Monday at new all-time highs. The energy and public sectors have been the ones that have raised the benchmark indices in a day dominated by red.

On the economic agenda, control group retail sales, which have a direct impact on the calculation of GDP, have fallen by 0.7%, almost in line with the 0.6% fall anticipated. The sales excluding automobiles, another closely followed variable, fell by 0.7%, compared to the expected rise of 0.2%.

In addition, the producer price index has rebounded by 0.8% in May, until reaching an interannual rate of 6.6%, a new maximum in the series. The consensus anticipated a rise of 0.6%, to 6.3% year-on-year.

"The ongoing mismatch between supply and demand it continues to fuel price pressures, while the influence of base effects after last spring's collapse probably peaked last month, "say analysts at Capital Economics.

"Beyond the noise, producer price increases will decelerate as supply constraints are relaxed and recalibrated to demand in the second half of 2021. With inflation expectations cooling off and fiscal stimulus waning, we continue to share the Fed's view that we are not entering a price spiral environment", they add.

Finally, the May industrial production it is up 0.8%, above the 0.6% forecast.

MEETING OF THE FEDERAL RESERVE

These references will be the preview of the highlight of the week: the meeting on monetary policy of the US Federal Reserve (Fed). The most powerful central bank in the world will publish its traditional statement and will also update its projections on the economy and interest rates. In addition, its president, Jerome Powell, will offer a press conference.

"The Fed is likely to start discussing the taper path (of your stimuli), and in the next meetings it could indicate the moment of its implementation", argue the analysts of JP Morgan, who anticipate that "reduction will start early next yeardespite the fact that inflation fears will not continue to accelerate. "

"Without a doubt," they acknowledge, "inflation is likely to remain high in the near future, but the possible spike in the core CPI year-on-year rate could take place over the next few months"While they expect the Fed to reiterate its stance that inflation is" transitory, "they anticipate that"take steps towards normalizing its monetary policy".

DIMON AND GORMAN PREVENT MORE INFLATION

Two of the most important private bankers have spoken about the evolution of inflation. JP Morgan Chairman and CEO Jamie Dimon, has commented that the bank has accumulated a liquidity position to "take advantage" of the investment opportunities that will arise from higher inflation.

"We have a lot of cash and capacity and we are going to be very patient, because there is a good chance that inflation is more than transitory"and force the Fed to raise interest rates, Dimon pointed out."I expect to see higher rates and more inflation, and we are prepared for that.", has added.

For his part, Morgan Stanley CEO James Gorman, has explained that he also believes that higher inflation can be durable and that the Fed could be forced to raise rates earlier than expected.

"The question is when will the Fed move? It has to move at some point, and I think the bias is more likely sooner than your forecasts suggest.", has valued Gorman.

COMPANIES AND OTHER MARKETS

At the business level, European Union Y USA have reached an agreement to end almost two decades of dispute over the respective subsidies to Airbus and Boeing, the two main aircraft manufacturers worldwide.

As for the S & P500, the values ​​that have lifted the benchmark index on Wall Street are Diamondback Energy (+ 5.10%) and Organon (+ 5.05%). And on the side of oil companies, the latest revaluations of barrels have led to increases to Exxon Mobil, of more than 3%, and Chevron, Of 2%.

For its part, GameStop has had falls close to 3% after a possible sale of its shares was announced. These declines are in addition to those suffered last week by so-called 'meme actions', the video game retailer, AMC and Clover Health. The latter has also targeted the red with drops of more than 8%.

What's more, Biogen he has recorded 2% drops after his therapy for choroideremia, an inherited disease that leads to blindness, has not achieved the goals set in the last stage of his development.

In addition, Novavax It has sunk 10% despite the fact that yesterday it announced that its vaccine against Covid-19 has an effectiveness of 90.4%, 100% in terms of the development of the disease in a moderate and severe way.

At the other end is Ocugen, that it has had a bit more luck than its competitors and has grown by more than 2%. The company is currently preparing for the possible commercial manufacture of Covaxin for the United States and Canada.

In other markets, the Petroleum West Texas is up 1.92% to $ 72.24. The euro appreciates 0.06% and changes to $ 1.2125, while the ounce of gold falls 0.31% to $ 1,860. And the profitability of 10-year American bond it drops slightly to 1.496%. Finally, the bitcoin grows 0.42% to $ 39,763 in a day in which it has once again exceeded the 40,000 barrier on several occasions.

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