Wall Street is trading with a mixed sign this Tuesday after the Profits Monday, which led to the Dow Jones to mark a new recordin a session in which the attack on Donald Trump set the pace for the market, given the increased likelihood that the former president wins the elections next November. Therefore, investors are still very attentive to the political situation of the country, without losing sight of the earnings season. «The increasing probability that Trump will win the presidential election greatly conditioned the sectoral behavior on the American stock exchanges on Monday, where the sectors/values that investors believe will emerge benefiting from a new Trump presidencyespecially due to the deregulation that this would entail, such as those in the energy sector, banks, especially regional ones, or industrial ones, were the ones that did best,» analyze Link Securities. These experts also emphasize the positive behavior of the small and mid-cap stockswhich «have been outperforming the market for a few days now after having lagged far behind in recent months, as have cyclical stocks and companies classified as 'value', indicating that The sector rotation that began last week seems to be continuing«. As a result, The US started the week on a positive note after the assassination attempt on Trump and «all the major US indices (the S&P500, the Nasdaq 100 and the Dow Jones) made gains while the Russell 2000 jumped 1.80%,» says Ipek Ozkardeskaya, senior analyst at Swissquote Bank. In fact, Trump reappeared in the Republican National Conventionwhich will be held between July 15 and 18 in Milwaukee (Wisconsin) and in which the official nomination of the magnate in his Race to the White House. At this event he announced that the Senator J.D. Vance Will be your vice presidentas he considers him to be «the most suitable person to take on the role.»
POWELL AND INFLATION
Another focus of attention for the market continues to be the Federal Reserve (Fed)especially after the June CPI moderationthe chances of the US central bank starting to cut interest rates in September have risen to 86%. In this regard, the head of the organization, Jerome Powellhighlighted this Monday that the Fed will not wait until inflation falls to 2% to relax monetary policy. «If you wait until inflation drops to 2%, you've probably waited too long.because the adjustment you are making, or the level of adjustment you have, still has effects that will probably bring inflation below 2%,» he said during an interview with David Rubenstein at the Economic Club of Washington. Otherwise, the economic agenda for Tuesday included the publication of the retail sales June, which remained unchanged after last month's 0.3% expansion.
COMPANIES AND OTHER MARKETS
On the business front, the results season continues to be the focus of market attention and today the accounts of Bank of Americawho has won a 6% less between April and Junebut exceeds expectations, and Morgan Stanleythat has increased its profit by 44% thanks to investment banking. In other markets, oil West Texas down 1.68% ($80.53) and the Brent yields 1.64% ($83.56). For its part, the euro depreciates by 0.15% ($1.0876), and the ounce of gold gains 0.54% ($2,442). In addition, the 10-year US bond yield relaxes to 4.20% and the bitcoin earns 0.73% ($64,024).