Wall Street closes higher after doubts raised by the evolution of the pandemic

Wall Street closes higher after doubts raised by the evolution of the pandemic

Wall Street has rebounded (Dow Jones: +1.30%; S&P 500: +1.13%; Nasdaq: +0.98%) after the falls suffered this Thursday due to the fear of the expansion of the Delta variant of the coronavirus and its possible influence on economic recovery. The three main US indices were credited to the red along with the rest of the world stock markets and, in turn, it elevated the bonds, torpedoing the banks on the spot.

In the last 5 days, the Dow Jones has managed to turn positive with increases of 0.24%, while the S&P 500 closes the week with increases of 0.40% and the Nasdaq has done the same with a revaluation of 0, 43%.

“The market is still contemplating what to do after growth peaks and the Fed backs down, especially with the second-quarter earnings season just around the corner kicking off next Tuesday,” said Chris Hussey from Goldman Sachs.

In macro terms, weekly unemployment claims have risen to 373,000, compared to the 350,000 claims projected by experts, in a clear symptom of a certain slowdown in the US labor market.

“The consensus ignored the upward trend in unadjusted requests in weeks when July 4 falls on a Sunday, so the risk was always growth,” says Ian Shepherdson of Pantheon Macroeconomics.

At the geopolitical level, Biden has signed an executive order aimed at curbing anti – competitive practices by companies in his country. It includes 72 actions and recommendations that involve a dozen federal agencies, seeking to reshape thinking around corporate consolidation and antimony laws.

In addition, the White House is willing to add more than 10 Chinese companies to its economic blacklist on Friday for alleged human rights abuses and high-tech surveillance in Xinjiang, two sources told Reuters.

The inclusion to the entity list is part of the Biden administration’s efforts to hold China accountable for human rights violations, the sources added.

At the international level, the G-20, the 20 largest economies in the world, is meeting, debating the global Corporation Tax of 15%. German Finance Minister Olaz Sholz has even told CNBC that the deal will come “very soon.”

COMPANY AND OTHER MARKETS

On the business front, the titles that have suffered the most this Thursday have led the comeback on Friday. Among them, financial entities such as Bank of America, airlines such as American Airlines and cruise companies such as Royal Caribbean stand out.

Likewise, Amazon has become the winner of the week for our analyst José María Rodríguez. “Technically, the price is ‘rearing its head’ clearly above the top of the side (resistance) through which the price has been moving for just a year, ” he says in his article. And he adds that “experience has shown me that the wide sides that are exceeded by their upper part usually bring significant increases in terms of the medium-term”.

We must also highlight Didi, who in the last session of the week has managed to turn its price around, with increases of 7.31% after last Monday China announced the withdrawal of its application from the app stores for new clients.

In other markets, the yield on the 10-year Treasury bond rebounded this Friday by five basis points, to 1.358%, after falling to 1.25% in the previous session.

In addition, a barrel of West Texas oil rises 2.29% to 74.61 dollars, the euro depreciates 0.31% and changes to 1.1879 dollars, while the ounce of gold rises 0.48%, up to $1,808. Finally, bitcoin appreciates 1.50%, to $33,417.