Wall Street is trading this Monday with a mixed sign at the beginning of a week reduced by Thanksgivingsince the American stock market will close next Thursday and will open only half a session on Friday.
After closing a consolidation week of levels, investors wonder if the market still has more gasoline in the near term to overcome significant technical resistance, or if, on the contrary, it will take a breather to continue consolidating the strong bullish rally from the October lows.
On the economic agenda, on Wednesday we will know the minutes of the last meeting of the Federal Reservewhich should confirm that the central bank is considering slowing the rate of interest rate increases to 50 basis points at its December meeting.
Consensus has discounted that inflation has peaked in the United Statesan optimism that the Fed has tried to curb in recent days to stop the recovery of the market, which does not add up in its fight to control prices.
DISNEY AND CHINA ARE LEADING
At the business level, surprise in Disneywhich has dismissed its CEO, bob chapeckwho will be replaced immediately by precisely the person who gave him the baton as CEO, Bob Iger. The change is causing profits close to 10% for the global entertainment giant.
Teslafor its part, is also news after recall a total of 350,976 vehicles in the United States (USA) for lighting and airbag problems that may affect the safety of the occupants, as reported by the United States National Highway Traffic Safety Agency (NHTSA).
In addition, during the next few days the retailers will present their results Best Buy, Nordstrom, Dick’s Sporting Goods, and Dollar Treein a very important week for consumption in the US, with Black Friday and Cyber Monday on the horizon.
On the other hand, the increase in cases of Covid-19 in China It has forced the authorities to decree new restrictions, which has had a negative effect on the Asian stock markets and anticipates more problems for the economic growth of the Asian giant.
10 STRONG AMERICAN VALUES
The values of high dividend yield they have shown remarkable resilience in 2022 despite rising interest rates and more attractive bond yields. So, for example, the Morningstar Dividend Yield Focusa basket of quality stocks with durable dividends, is up just over 4% since January.
This portfolio is made up of the operator Verizon Communicationsthe snuffbox Phillip Morristhe technological Cisco Systems and Broadcomthe manufacturer of medical devices Medronicthe industrial company 3Mthe asset manager Blackstonethe banks Truist Financial and PNC Financial Services and the energetic Duke Energy.
For their part, experts from BlackRock have commented that «equities are only beginning to price in a worsening macroeconomic outlook. We see more room for stocks to fallas prices do not yet fully reflect the combination of recession risks and higher interest rates. earnings expectations consensus for this year and next still seem too optimistic to us, given the growth context».
TECHNICAL ANALYSIS AND OTHER MARKETS
By technical analysis, it would not be strange to see the S&P 500 seek in the short term the support zone of the 3,900 points, price that previously acted as resistance. The index can also head towards the bullish gap of the session held on November 10, located between 3,818 and 3,860 integers.
We recall that the index marked the lows of the current bear market slightly below 3,500 points last October 13.
In other markets, the west texas oil falls 3.4% ($77.35); and the Brent, a benchmark in Europe, lost 3.3% ($84.73). The euro depreciates 0.7% ($1,025) and the Prayed down 0.5% ($1,746). Furthermore, the profitability of 10 year US bond rises to 3.76% and the bitcoins yields 2.1% ($16,156).