Trump da Wall Street: Meloni fantastica
December 16, 2024
Linea Mercati Interview 12/16/24
December 17, 2024The New York Stock Exchange opened higher on Monday, showing signs of strengthening after a consolidation phase, at the start of a week full of macroeconomic news.
Around 3:20 p.m., the Dow Jones was up 0.06%, the Nasdaq index was up 0.45% and the broader S&P 500 index was up 0.24%.
The Dow Jones has fallen for seven consecutive sessions, a first in nearly five years (February 2020) and the panic attack linked to the arrival of the coronavirus pandemic.
“There was some limited profit-taking,” observes Peter Cardillo of Spartan Capital, who points out that while the Dow Jones has fallen, the S&P 500 and Nasdaq have all remained close to their record levels.
“There is a positive tone in the equity market after last week’s declines,” notes Patrick O’Hare of Briefing.com in a note.
This atmosphere “has a bit of a speculative undertone,” according to the analyst, with investors having in mind that “the second half of December tends to be a good time for stocks, especially small caps.”
This trend could be encouraged, according to Peter Cardillo, by the decision of the American Central Bank (Fed), which most operators expect to cut rates by a quarter of a percentage point at the end of its meeting on Tuesday and Wednesday.
“We could restart the end-of-year momentum and take the S&P 500 to 6,150 points,” he explains, the current record being 6,099.97 points, reached at the beginning of December.
However, with the Fed meeting, followed by those of the Bank of Japan on Wednesday and Thursday, as well as that of the Bank of England on Thursday, the market is exposed to increased volatility.
A phenomenon that could increase with the expiry of a massive quantity of futures contracts on Friday, called “three-witching day”, in reference to the products concerned, namely stock options, stock index options and index futures.
Wall Street reacted little to the publication of the PMI indices from the S&P Global consultancy, which painted a contrasting picture of the American economy, with an activity index at a low of nearly 3 years for the manufacturing sector and a high of four and a half years for services.
The Empire State Index, which measures the temperature of industry in the New York region, suffered an unexpected decline.
The bond market was stable. The yield on 10-year US government bonds stood at 4.39%, compared to 4.40% at the close on Friday.
The week promises to be sparse in terms of corporate publications, although Micron is expected on Wednesday, while Nike and FedEx will present their quarterly accounts on Thursday.
Some big names in the semiconductor sector pulled the Nasdaq, in particular Broadcom (+7.70%), still supported by the statements of its CEO, Hock Tan, who sees a “massive opportunity” for his company in the development of artificial intelligence (AI).
Buoyed by the acceleration of its revenues from AI, Broadcom joined the closed circle of companies with a capitalization of more than a trillion dollars on Friday, which now has ten members.
The industrial conglomerate Honeywell (+2.82%) benefited from the statements of its CEO, Vimal Kapur, who announced the possible split of the space activities from the rest of the group.
This separation was requested by the alternative investment company Elliott Investment Management, which recently took a minority stake in Honeywell.
The software publisher and remote computing service provider (cloud) MicrosStrategy (+4.91%) followed the new surge in bitcoin, which reached a new record on the night of Sunday to Monday, at 106,493.42 dollars.
Last week, the group from Tysons Corner (Virginia) bought more than 15,000 bitcoins and strengthened its position as the largest holder of bitcoins in the world among non-financial companies with 439,000 units of the digital currency, or around 45.6 billion dollars at the current price.
