Tuesday, December 5, 2023

Wall Street opens higher after four days in the red and the Dow Jones rises 1.27%

Wall Street opened this Friday with rises and the Dow Jones Industrials, its main indicator, gained 1.27% supported by the rebound of regional banks, the strong rise in Manzana and after learning better-than-expected employment data in the United States.

Ten minutes after the start of operations, the Dow Jones stood at 33,549.91, while the selective S&P 500 rose 1.18% to 4,109.07 and the Nasdaq market composite index rose 1.12% and stood at 12,100.43 integers.

After chaining four days in negativeWall Street opened this last session of the week with clear advances and with practically all the sectors in the green, led by the energy companies (2.74%) and financial (2.05%).

Those two sectors, which had been among the most harmed in recent days, they were recovering ground thanks to a stabilization of the price of oil and the rebound that regional banks were experiencing today, respectively.

PacWest, an entity based in The Angels which collapsed more than 50% yesterday, was up 56% at this time, while Western Alliance -another of the hardest hit by the recent fears banking- rose almost 36%.

According to analysts, the change trend is due in part to a note issued by JPMorgan Chase, which pointed out that the price of these regional banks had been located with the last falls well below the real value, which would have awakened the interest of some investors to get hold of securities at bargain prices.

The big banks, including their own JPMorgan Chase (1.73%), also started the day positive after the losses of the previous day.

The great name of the day was, however, Apple, the largest company in USA by market capitalization, which rose 4.50% after presenting its quarterly results.

Among the thirty Dow Jones stocks also had clear Profits UnitedHealth (2.13%), Chevron (2.10%) or American Express (2.07%).

On the other side, the older losses they were for Intel (-0.77%), MSD (-0.52%) Procter & Gamble (0.34%).

Out of this index, the collapse of the platform transportation company Lyft, which dropped nearly 20% in reaction to its quarterly results.

Meanwhile, it remained to be seen how the market would digest the data from employment in April in the United States, which showed a stronger labor market than expected, which on the one hand once again demonstrates the strength of the country’s economy, but on the other hand it suggests that new increases in interest rates may still come.

According to Bureau of Labor Statistics (BLS), the unemployment rate fell one tenth last month and stood at 3.4%.

In the fourth month of the year were created 253,000 jobs net income, 17,000 more than in March, and the US saw unemployment fall for the second consecutive month, after the slight rise it registered in February and which seemed to indicate that the increases in interest rates they were cooling the job market.

This week, the Federal Reserve (Fed) raised the price of money again, with a rise of 0.25 points, in an attempt to control inflation.

In other markets, the gold today it fell to 2,015.9, the yield on the 10-year US bond rose to 3.45%, oil stood at just over US$71 a barrel and the dollar gained ground against the euro, with a change of 1,098.


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