Wall Street closed with purchases this Tuesday (Dow Jones:+1.24%; S&P500:+0.88%; Nasdaq:+0.64%) after being closed on Monday for martin luther king day. Thus, operations have returned to the market after the inauguration of Donald Trump as president of the United States, while investors focus their attention on the Netflix results. In the session, The Dow Jones has been the most bullish indexsupported by the increases of 3M, which has skyrocketed after presenting results, and other companies such as Caterpillar. While, the Nasdaq has obtained the most moderate gainsbeing penalized by Apple's falls. On the other hand, the US 10-year Treasury bond yield has continued to moderate and fell this Tuesday to 4.562% waiting for learn the details about the tariffs announced by President Donald Trumpwho during his inauguration on Monday announced that he will impose restrictions on imports but without specifying their content. One of the aspects that investors missed in Monday's inauguration were the references to cryptocurrencies, although they have breathed a sigh of relief upon learning that The Securities and Exchange Commission (SEC) has created a «cryptocurrency task force» dedicated to «developing a complete and clear regulatory framework» for this type of asset. «Welcome to Trump 2.0in which investors will receive a good dose of adrenaline, volatility and unpredictability«comments Ipek Ozkardeskaya, senior analyst at Swissquote Bank. For Bankinter analysts, the most important thing «was what did not happen: statements that are more populist than effective, without creating confusion in the market by focusing on immigration and other short-term vague aspects (exiting the Paris Climate Agreement, producing more oil and gas,…). The practical implications for the market revolved around tariffs and oil. Regarding the first, it did not impose tariffs from day one, although it warned that these would be 25% for Mexico and Canada from February 1. We will see. Regarding the second, he announced that he will promote oil extraction. So The energy sector will, in principle, be one of the most benefited by Trump«. And from now on, «what's next?» asks Ozkardeskaya. «No one knows, but the positive pressure on the dollar against most major currencies (except the yen) should continue, due to the fears that Trump's tariffs will boost inflation in the US and keep the Fed hawks vigilant.» «On the first day of Trump's presidency, Fed funds futures are pricing in a possible 25 basis point rate cut at May meetingbut the odds are almost like a coin toss; everything is subject to changeand sometimes to rapid changes,» he adds. The week's macro agenda has few notable references, only the weekly unemployment data (Thursday) and Manufacturing and services PMIs January preliminaries (Friday).
IT'S TIME FOR NETFLIX
From a corporate point of view, the earnings season continues to move forward and this Tuesday, after the market closes, Netflix will present his fourth quarter figures. «The company is expected to almost double your earnings per share compared to the same period last year and record almost 15% growth in revenue. A positive report could push the stock price back above $900, while a disappointment could trigger a deeper downward correction in the stock price,» says Ozkardeskaya. Investors will also focus their attention on news that the company announces about its bets on the broadcast of live sporting events. «This marks the most significant shift in content strategy in some time, and the results will be closely watched. Netflix is clearly looking to score big in the live sports space, so Investors will be keeping an eye on what else he has up his sleeve.» says Matt Britzman, senior equity analyst at Hargreaves Lansdown
COMPANIES AND OTHER MARKETS
In today's business, Apple shares have fallen 3.19% after Jefferies analysts reduced their recommendation on the stock to 'underweight'. More pronounced have been the declines in Walgreenswhich has dropped 9.19% after the US Department of Justice filed a complaint against the pharmacy chain for the alleged use of «millions of illegal prescriptions.» On the opposite side, 3M is up 4.17% after the company presented some results for the fourth quarter of 2024 better than expected by the consensus of analysts. It has also been revalued modern (+5.37%) after receiving $590 million from the US Department of Health and Human Services (HHS) to develop its vaccine against bird flu.
In other markets, oil West Texas has decreased by 2.30% ($76.09) and the Brent has given up 0.85% ($79.49). For his part, the euro has appreciated 0.03% ($1.0418), and the ounce of gold has gained 0.26% ($2,756). Furthermore, the 10-year American bond yield has relaxed to 4.562% and the bitcoin has advanced 2.24% ($106,143).