Wall Street enters hard in 2020: S&P 500 and Nasdaq beat their own records again

Wall street It starts this week with optimism and emphasizing that it is in absolute free ascent. The three main indices of the New York Stock Exchange are trading on Monday with slight increases and renew their historical highs. The Dow Jones rebounds 0.29% compared to Friday, reaching 28,907.05 points; the S&P 500 rises 0.65%, to stand at 3,288.07 units, the Nasdaq compound registers a rise of 1%, rising to 9,273.93 integers and the Nasdaq 100 rebounds 1.16%, up to area of ​​lso 9,070 points.

The US equities ended in red on Friday, but this did not prevent the selective gain 2% in the accumulated last week after the several highs they reached.

“Last week the main North American indexes managed to mark a new high of all time, which is anything but somewhat bearish and reinforces if there is more the bullish situation of the US market, which will not show any sign of exhaustion as long as the S&P500 does not close the gap that opened up from the 3,250 points and the Nasdaq 100 do the same, losing similar media in the 8,900 points“, explains Joan Cabrero, strategy director of Ecotrader.

“While these supports stand still we see no reason to consider collecting benefits in the North American market,” the analyst emphasizes.

But on the corporate level today stands out Tesla. The actions of the car founded by Elon Musk exceed the $ 500 price for the first time in its history. They shoot about 10% this Monday and reach $ 525 towards the end of the session in New York.

There are still those who see more route for the titles of the firm directed by Elon Musk. The analyst Colin Rusch of Oppenheimer & Co. has raised the company's target price up to 612 dollars from the 385 dollars in which he had placed his valuation so far. The expert justifies his decision that “Tesla has reached a sufficient scale to support a sustainable and positive free cash flow”.

Among the ten risks to the market in this 2020, which have highlighted since Natixis is the stagnation of growth, liquidity of credit and sales in technology. “Expectations have increased that growth will rebound in the coming months“says Esty Dwek, director of Global Market Strategy, Natixis IM Solutions.” If the growth disappoints or if we see another bump, fears of a recession may reappear, “adds the expert.

In addition, it points out that the liquidity in the markets Credit has declined sharply since the financial crisis, while debt levels have continued to rise in recent years.

Oil is recorded five days of falls

Oil futures Brent they descend for the fifth day in a row and are planted in the area of ​​$ 64.2 per barrel, after retreating around 1.2% compared to Friday. During the past week, the reference crude in Europe again approached $ 70 to end up collapsing 5.3% in the whole of the week. So far this year, oil lost around 2.8%.

On the other hand, West Texas futures fell around 1.7% towards the end of Monday's session, which is also their fifth consecutive day of declines. So far this year, US crude accumulates losses that touch 5%.

The war escalation between the United States and Iran brought oil up last week and the de-escalation, or the return to tense normalcy between the two countries, has led oil back to the area where it was listed before the conflict.

“Investors are convinced that Iran will not block the Strait of Hormuz or direct attacks on oil shipments, “said analyst Hussein Sayed, FXTM strategy chief in statements collected by Marketwatch.” That is because Iranian exports to China are a significant source of government revenue and without them, the crisis economic would only exacerbate, “said the expert.

On the other hand, from Saudi Arabia they insist on the commitment of OPEC and its allies to continue cutting daily oil production with the objective of remove surpluses and push up the price of crude oil.

Proven oil reserves in the United States have risen by 12% in the last review conducted by the country's Energy Agency (EIA), whose data belong to December 2018. The review shows that the greatest power The world's economic home is housing 43.8 billion barrels of crude oil, compared to 39.2 billion of the previous estimate, reports Vicente Nieves.

The euro threatens to want to approach $ 1.12

It still has travel, but the European currency advances for the third consecutive day, reaching the area of ​​$ 1,114, after picking up a slight 0.1% compared to Friday. However, this advance it is not enough yet to put the euro in positive in the year in its crossing with the American ticket. So far this year, the euro depreciates 0.7% against the dollar.

For its part, the pound rises 0.6% this Monday, to the level of 1,167 euros, although it regresses 2.6% from the recent highs that marked the day of the British elections (December 12) and depreciates around 1.3% so far this year.

As for metals, gold falls to the level of $ 1,550.7 per ounce, which represents a 0.6% decrease compared to Friday's session close, and gains around 1.8% in the first days of 2020. Last year it revalued 18.9%.

Gold has registered another fall after the sale of funds traded on the stock exchange investors move away from the refuge to riskier assets, they point out from Bloomberg. The palladium was close to breaking its own record.

The season of North American results begins …

Thus, the changes (if any) in the bags will be expected. But surely only until tomorrow, Tuesday, when the start of the fourth quarter results season in the United States will focus attention.

The North American investment bank will be responsible for kicking off: JP Morgan Chase, Citigroup and Wells Fargo they will account to the market. All three will do so before the opening of Wall Street.

Of course, so important will be the final figures of 2019 as the guides that these entities can give for the whole of this year, highlights the Department of Income Analysis 4.

One day before making their figures known, JP Morgan Chase and Citi are trading flat while Wells Fargo shares record falls below 1%.

… and China and the US sign the “phase one”

Also, the commercial war between the two largest economies in the world, China and the US, returns to the center of the stage these days.

Today the Asian giant negotiating delegation travels to Washington, where on Wednesday, January 15, the 'first part' (or “phase one”) of the agreement with which both nations seek to end their mutual tariff attacks will be signed.

“This firm is something we consider totally discounted by the markets,” say the experts at Renta 4. Really, their only expectation is that it will give way to the talks for the second phase of the pact. Negotiations that are predictably much more complicated and that, however, according to US President Donald Trump, will end before the presidential elections (that is, before November).

Rest of the week

The trade balance of China will be known just one day before the rubric and on Friday, day 17, its GDP.

Other references that will be known next week will be Germany's GDP, the largest economy in the Eurozone, at the end of 2019; inflation in the United Kingdom and France; and industrial production throughout the euro zone.

For readers who want more: Ecotrader, the investment strategy portal of elEconomista.es

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