Wall street has failed to make full this Tuesday and its three main indexes ended with the changed pace. Only the Dow Jones remained positive, with a rise of 0.11%, reaching 28,939.67 points and scoring a new all-time high. For the second day in its history, the index has exceeded 29,000 points intraday. As for the S&P 500, it falls 0.16%, to 3,382.89 integers, and the Nasdaq 100 loses 0.41% but remains above 9,000 points, specifically, at 9,033.42.
Washington will host on Wednesday the signing of the 'first part' of the trade agreement between the United States and China. Precisely, today it has been confirmed that tensions between the two countries slowed the foreign trade of the Asian giant in 2019. The Chinese trade surplus against the United States fell 4.7%.
Thus, with the so-called “phase one”, both powers (the two largest in the world) seek to end their tariff war last year and a half. And although this firm is something that the market takes for granted for weeks, and doubts are given in the face of “phase two,” which will foreseeably be more complicated to tackle, the gestures between the two nations point in the right direction: States United has stopped considering the Asian giant as a “currency handler” on Tuesday, one day after the rubric.
The investment community has also set itself on Tuesday in the US economy, because the inflation rate for December and all of 2019 has been published there. The year ended at 2.3%.
Wall Street is still in the area of historical highs, despite the slight decline of today, but the party it won't end as long as the S&P 500 and the Nasdaq 100 hold on to their key supports.
This is what Joan Cabrero, director of Strategy for Ecotrader, believes. “(Wall Street) will not show any sign of exhaustion as long as the S&P 500 does not close the gap that opened upwards after 3,250 points and the Nasdaq 100 do the same by losing similar media at 8,900 points, “he says.
“While these supports stand still we see no reason to consider collecting benefits in the US market,” says the expert.
Thus, since the beginning of the Christmas rally around the first day of December, the S&P 500 has revalued about 5%, while the Dow Jones has advanced 3.5% and the Nasdaq 100, 8%.
JP Morgan Chase, Wells Fargo and Citi, the first to account in the US
Investors and analysts have been pending today especially at the start of the season of results in the United States. Investment banks Wells Fargo, Citigroup and JP Morgan Chase have been in charge of releasing it, all three before the opening of the North American market, but the reaction in their quotes is very different.
JP Morgan Chase and Citi revalue around 1.2% and 1.6% in the parquet. The first raised its net profit by 12% in 2019, to a record $ 36,431 million. For its part, Citigroup made a profit of 19,401 million dollars, 8% more than a year earlier.
On the other hand, Wells Fargo sees how its shares plummet more than 5% in the New York parquet after reducing its profits by 13% last year. In addition, it has announced a new plan to cut expenses.
OPEC plans to extend the cuts until June
Oil futures Brent they pick up $ 64.6 per barrel, which represents a 0.6% rise compared to the close on Monday, which ends five consecutive days of falls, and cuts annual losses of reference crude in Europe to around 2.1%.
For its part, the futures of West texas up 0.4%, to the area of $ 58.3 per barrel, but retain 4.5% losses at the start of the year.
The third change in the price of oil in recent days has occurred following the information that the Organization of Petroleum Exporting Countries (OPEC), which was scheduled to meet in March, could pass the appointment to the month of June and extend the production cut a few more months crude oil daily agreed at the end of last year.
“It makes little sense to meet in March since OPEC + will only have the January production data at that time,” said Tass in the Russian news agency in statements that Bloomberg collects and that are based on the testimony of an employee of the OPEC that has not wanted to reveal its identity.
On the other hand, the United States Energy Information Administration (EIA) has announced its forecasts for energy prices. Brent and the West texas in 2020. The agency expects US crude oil production to reach a new record in 2020, up to 13.3 million barrels per day, and the 13.71 million in 2021.
Also, daily oil production worldwide is expected to reach 102.11 million of barrels For West Texas they estimate a price in 2020 of $ 59.25 per barrel and for Brent, $ 64.83.
Gold loses again bellows
The precious metal falls to the area of $ 1,546 per ounce after yielding a slight 0.3% compared to Monday, and retains an annual return of 1.5%. Gold extends its decline from intraday highs which recorded last week about $ 1,600 (maximum of the last six years) because of the peace of mind that the signing of Phase 1 of the trade agreement infuses the investment community.
However, as they pointed out Monday from Bloomberg, investors move away from the refuge to riskier assets, which has led, for example, to palladium to beat a new record.
“We are still in corrective mode after a sharp increase at the beginning of the year and at the end of 2019,” says analyst Carsten Fritsch of Commerzbank, in statements to Bloomberg.
In terms of currencies, the euro recorded a slight decline, although with hardly any changes compared to the close of Monday, in the area of the lso $ 1,113. As far as exercise goes, the common currency It depreciates around 0.8% against the US banknote.
The pound sterling recovers the level of 1.17 euros after appreciating a slight 0.3% in the session and cutting annual losses to 1%.
In the context of the United Kingdom's departure from the European Union, it has been known that the French company Total will move its treasury team from London to Paris. Its CEO, Patrick Pouyanne has assured that Brexit has had to do with the decision. The operation will affect a group of between 60 and 70 employees.
Delta Air Lines has a good day in the stock market
The actions of the US airline are revalued around 3.3%, to the area of $ 61.8, which marks an new annual maximum and reaches a level that has not been seen since July 2019. So far this year, the US firm earns about 6% in the parquet.
The rise experienced by the airline's titles is explained by the presentation of quarterly results (it is the first to do so), in which the benefits exceeded expectations of analysts about domestic demand, the low price of fuel and the sale operation of their participation in the Brazilian airline Gol Linhas Aereas Inteligentes.
“Delta is betting on continued advances in US transportation this year, and plans to invest more money in its nerve centers in Atlanta, Minneapolis, Detroit and Salt Lake City,” they explain from Bloomberg.
“But the return to the end of the Boeing 737 Max that had been grounded could be a problem for prices due to the increase in the supply of seats, “they add. As for revenue per seat, it will remain flat with a 2% growth this quarter.
For readers who want more: Ecotrader, the investment strategy portal of elEconomista.es
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