Wall street has ended the session this Friday with strong purchases (Dow Jones: +2.59%; S&P 500: +2.46%; Nasdaq: +2.87%) behind the Thursday mixed closing and after the bad reception they had last night amazon results, which has collapsed after cutting its profit forecast. For its part, Manzana It has posted solid earnings and has been the main positive catalyst, as investors have taken refuge in the iPhone maker before the debacle in the rest of the great American technology.
The weekly balance has been positive for the New York indices. In the last five days, the Dow Jones has gained 5.72%. The S&P 500, for its part, has advanced 3.95% and the Nasdaq has added 2.24%.
Except for the iPhone manufacturer accountsthe results of Alphabet, Microsoft, Meta (yesterday it sank almost 25%) and the own amazon They have caused a very important stock market crash for the technology giants, which have definitely lost favor in the market in the short term.
The actions of IntelInstead, they have risen after the company reported cost reductions of up to $10 billion and efficiency improvements through 2025.
In the case of ExxonMobil and Chevron oil companieshave ended the third quarter of 2022 with strong increases in their respective profits, thanks to the boost from high energy prices.
On the other hand, Elon Musk has fired the main directors of Twitter after closing the purchase of the social network for 44,000 million dollars.
THE FED IS PLANNING TO STOP
However, despite this collapse of the ‘big tech’, the New York indices have remained supported by the other big news of the week, which has been the leak that The Federal Reserve (Fed) plans to slow down the pace of its monetary tightening as of December.
This was enough to extend the short term bullish rally during the first part of the week and continues to support the market in the short term. In any case, the S&P 500 trades at levels of 3,828 pointsafter having marked in the middle of the month a low below 3,500 points.
APPOINTMENT WITH THE FEDERAL RESERVE
Therefore, looking ahead to next week, the Fed’s monetary meeting next Wednesday has become the main reference.
The market has already discounted a new rise in interest rates of 75 basis points, to 3.75%-4%but for the stock markets the important thing will be to check if the message that the rise in December will be lower is confirmed, because the price of money is already at restrictive levels for growth.
We recall that, this week, the Bank of Canada raised interest rates by 50 basis points, below the anticipated 75 bps, which was very well received.
THE PCE INFLATION DATA WILL BE KEY
This Friday, another very important appointment has been the inflation indicator PCE, which is the Fed’s favorite measure of inflation expectations. In the month of September, it has remained in the 6.2% in interannual rate, a figure that has worsened what was anticipated by the consensus, which estimated a drop to 5.8%. The underlying ECLwhich excludes energy and unprocessed food prices, has advanced to the 5.1% from the 4.9% of the previous month, although slightly improving the 5.2% expected by the consensus.
«The data was mixed, but inflation is too high for the Federal Reserve and we believe the stage is set for another 75bp rate hike in November, followed by a 50bp hike in December.» oxford economics.
In other markets, oil west texas is down 1% ($88.19) and crude Brent has yielded 0.96% ($96.03), while the euro it has depreciated 0.03% ($0.996). On the other hand, the performance of 10 year US bond has rebounded to 3.994%, while the ounce of gold it has fallen 1% ($1,647). In addition, the bitcoin it is down 0.8% to $20,480.