Wall street has closed with profit (Dow Jones: + 0.95%; S&P 500: + 0.58%; Nasdaq: + 0.69%), with the S&P 500 and Nasdaq at all-time highs again, reaching 4,271.28 and 14,414.46 points, respectively. In this way, these two New York indices are on a free rise.
Stock valuations in USA are high and have already discounted the current economic recovery in the US and the confidence generated by Joe Biden after announcing the agreement to carry out the infrastructure program.
The president has left the meeting with the 11 Republicans and 10 Democrats confirming the pact as positive. Finally, he has achieved $ 579 billion for his plan.
Nancy pelosi, Speaker of the House of Representatives, has specified that this project is not very ambitious and that it should be expanded with financial allocations for the care of children, the elderly, education, health and climate change. In addition, he has commented that if both laws are not approved by the Senate, they will not reach Congress.
Also, the Federal Reserve (Fed) has implied that he has begun to discuss the withdrawal of monetary stimulus, and investors cautiously analyze where the best opportunities to invest in the current scenario are.
In this sense, as published by FundsNews, JP Morgan continues to bet on Spanish and European equities against the US in the current scenario. "Europe still has room to continue its upward trend against the US"say these analysts.
The key for these experts is that the markets of the Old Continent "are experiencing a faster rate of updates than any other region"in earnings forecasts, which favors cyclical stocks such as financial sector and the producers of basic materials.
As for the macroeconomic data, The number of weekly jobless claims has fallen slightly to 411,000, according to data published by the US Department of Labor. This is something less than expected, which placed the figure at 380,000 requests.
In addition, the country's Department of Commerce has also released the latest revision of GDP data of the first trimester, that has risen 6.4%, in line with expectations.
The durable goods orders data for May, which has grown by 2.3%, as reported by the United States Census Bureau. The forecasts they placed it in the 2.8%.
THE MARKET ADAPTS TO THE FED
On monetary policy, "investors seem to have already accepted that the Federal Reserve (Fed) will be forced, given the strong growth of the economy and inflation, to start the stimulus withdrawal process a little earlier than expected", they point out from Link Securities.
"It's more, futures already discount a rise in official interest rates in 2022, something that we understand should not surprise anyone given the strong recovery that this economy is experiencing ", these experts add.
INTENSE PRESSURES ON PRICES
Another thing that worries the market is the evolution of prices in the US. In the report on PMI activity data in the services and manufacturing sector, IHS Markit highlights that "price pressures also remained high in June"as" manufacturers continued to notice rapid increases in raw material and fuel costs, while service providers highlighted higher wage bills to attract workers and higher transportation rates and fuel costs. "
Furthermore, IHS notes that "the highest costs were passed on to customers through a sharp increase in production charges during June. And the Sales price increase was the second steepest since data collection began in October 2009".
COMPANIES AND OTHER MARKETS
At the business level, three large technology companies have signed absolute records in their prices. On the one hand, Microsoft, which has risen slightly, reaching $ 267.85. This occurs on the day the company filed Windows 11, your new operating system after 6 years.
What's more, Facebook has surpassed its ceiling reaching $ 344.90, rising 0.76%. This rally has also joined Nvidia, with maximums that have exceeded $ 776.80.
It is also news Tesla, which has risen by 3.54% after the latest Ernst & Young report on the sector anticipated that lElectric car sales exceed gasoline sales in 2033, five years ahead of schedule.
On the other hand, the Fed will announce after the market close the result of stress tests on the American banking sector, which will allow entities to set their dividend and share buyback policy. And in the results chapter, the sportswear firm Nike and the transport company FedEx they will publish their quarterly results.
On the other hand, they have found dead John mcafee, creator of the antivirus that bears his surname, in a prison in Catalonia, where he was detained at the request of the US for tax fraud.
In other markets, oil West texas rises 0.23%, to 73.25 dollars, and remains at the highest since April 2019. In addition, the euro it appreciates 0.07% and changes to $ 1.1933. Besides, the ounce of gold falls 0.48% to $ 1,774 while the 10-year American bond it picks up slightly to 1.489%. Finally, the bitcoin grows 4.83%, to $ 34,815.
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