Wall Street closed with a mixed sign this Tuesday (Dow Jones:+0.52%; S&P500:+0.11%; Nasdaq:-0.23%), As expectations rise that the Federal Reserve (Fed) will act cautiously on interest rates. This, while investors focus their attention on the bond yieldthe inflation data and wait for the start of earnings season. «The global bond selloff is powered by the concerns about the rising debt levels leading to political turmoil and uncertainty in developed economies. This is aggravated by the difficulties of the main central banks to reduce inflation to their 2% objective«As a result, yields are rising and expectations of new cuts rates of some major central banks they are meltingwhich puts stocks under pressure,» adds the expert.
ATTENTION TO THE INFLATION DATA
At a macro level, the focus of the market falls on the inflation. In this session the production price indexwhich has risen to 3.3% in the last month of the year, one tenth less than expected. However, the main course will arrive on Wednesday with the publication of the December CPIwhich is expected to rebound slightly in general rate up to 2.8% from 2.7% the previous month, and remain stable at 3.3% in the underlying variable. «There is a chance that a stronger CPI reading than expected can make all rate cuts for 2025 are ruled out. This may be an overreaction, but traders should be prepared for another leg of decline in stocks and risk assets if there is a nasty surprise to the upside in US prices,» says Kathleen Brooks, director of research at XTB. «Rising price pressures are not good news for the Fed. Stronger-than-expected inflation figures could further accelerate the sell-off in US Treasuries and support the US dollar,» reiterates Ozkardeskaya. The agenda also includes other notable references such as weekly unemployment data or the retail sales (Thursday).
COMPANIES AND OTHER MARKETS
At the business level, the large US banks as JP Morgan, Goldman Sachs, blackrock either Citigroup This Wednesday they will kick off the results season for the fourth quarter and for 2024 as a whole. Bank of America either Morgan Stanley They will do the same on Thursday. It's also news TikTokwhich has been described as «pure fiction» the possible sale of his business in the United States to the magnate Elon Musk if the authorities finally force the parent company, ByteDance, to divest from its business in the country or prohibit its operations. Furthermore, the actions of Boeing have fallen 2.10% after the company reported a drop in aircraft deliveries during 2024a course that has been marked by the safety crisis in its 737 MAX model and by the strike that its workers staged in the US in the last quarter of the year. has also fallen Eli Lilly (-6.64%), which has presented its income forecast for 2024 and 2025, an update in which it has offered one of lime and another of sand to the market, which now expects sales of Zepbound and Mounjaro drugs miss estimates in the fourth quarter. In other markets, oil West Texas has fallen 1.36% ($77.75) and the Brent has fallen 1.11% ($80.12). For his part, the euro has appreciated 0.56% ($1.0302), and the ounce of gold has gained 0.37% ($2,688). Furthermore, the 10-year American bond yield has relaxed to 4.786% and the bitcoin has risen 3.77% ($96,392).
