Wall Street closed with sales this Thursday (Dow Jones:-0.16%; S&P500: -0.21%; Nasdaq:-0.89%) after the strong profits on Wednesday thanks to the good figures presented by the banking already fall in core inflation. In this session, the market's interest has been focused on macroeconomy and, again, in the bank results. «Yesterday's data once again put the rate cut expectationss. Activity in federal funds futures now hints that The next Federal Reserve (Fed) rate cut could come in May – and not in June – and that is an explosion for the equity markets that also benefited from a set of strong earnings from the large US banks,» assesses Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Thus, in Link Securities highlight that «a set of good news in the field of inflation, something that had investors very worried, and the more than positive start to the earnings season on Wall Street yesterday encouraged investors to increase positions in both the bond and stock markets. Whether or not both markets are going to maintain the good tone in the coming weeks will depend on the first measures announced by the new US administrationafter taking possession of donald trump as the new president of the United States, something that will take place next Monday, January 20.» For Bankinter experts, «yesterday's inflation data gives some peace of mind to the stock markets, although this could be fleeting since this Monday, the 20th, Trump will take possession.» Therefore, they believe that to maintain the good tone «the American macro and business results will be key, again». This Thursday's macro agenda has included notable references such as weekly unemployment datawhich have shown an increase greater than expected, or the retail saleswhich have surprised downwards with an expansion of 0.4% in December.
MORE BANKING RESULTS
At the business level, the results season of the fourth quarter and of 2024 as a whole begins to gain strength. On this day it was the turn of Bank of America either Morgan Stanley who have been accountable to the market. With regards to Bank of Americahas recorded profits of 6.7 billion dollarsor 0.82 dollars per share, which is more than double the 3.1 billion dollars obtained in the same period of 2023. For its part, Morgan Stanley has exceeded forecasts with its fourth quarter results thanks to solid income from variable and fixed income trading. Its shares have risen 4.03%. «The analyst consensus anticipates a strong growth in sector profits in the quarter in question, especially with the large investment banks achieving significant year-on-year increases in their figures. Furthermore, it is expected that in the last quarter the profits of the companies that make up the S&P 500 have increased by 8%, while their sales have increased by 5%», they add in Link Securities.
OTHER MARKETS
In other markets, oil West Texas has dropped 1.66% ($78.69) and the Brent has given up 0.85% ($81.32). For his part, the euro has appreciated 0.08% ($1.0298), and the ounce of gold has gained 1.11% ($2,748). Furthermore, the 10-year American bond yield has moderated to 4.613% and the bitcoin has added 0.67% ($99,233).
