Wall Street quotes with purchases this Tuesday after earnings on Monday, which allowed the Dow Jones renew maximums before the good market reception to the appointment of Scott Bessent as the new Secretary of the Treasury. However, investors are focusing their attention on the Donald Trump's first tariff threatin the macroeconomy and in the Federal Reserve (Fed). It is worth remembering that the American stock market will remain closed on Thursday Thanksgiving and on Friday it will open only half a session ('Black Friday').
trump has threatened to impose tariffs of 25% on Canada and Mexico and 10% on China starting January 20first day of his second presidential term, if these countries do not stop the illegal immigration and the fentanyl trafficking. For this reason, he has pointed out that «This tariff will remain in effect until the drugsparticularly fentanyl, and all illegal immigrants stop this invasion of our country! Both Mexico and Canada have the absolute right and power to easily resolve this long-simmering problem. We hereby demand that you use this power, and until you do, it is time for you to pay a very high price!» For Renta 4 experts, the threat «represents a clear contrast with the greater peace of mind that had brought to the financial markets the election of Bessent as Secretary of the Treasury, with a more moderate profile than the president-elect. We will see if we are facing a real risk of tariffs or a negotiating strategy from Trumptaking into account that Their imposition would also be negative for the US.depriving it of relevant products (energy from Canada) and increasing its costs.
MINUTES OF THE FED AND OTHER REFERENCES
Regarding the Fed, the US central bank has published the minutes of its last monetary policy meetingin which he undertook a 25 basis point rate cutand these have anticipated the arrival of new rate cuts, although at a gradual pace. «Participants anticipated that if the data turns out as expected, with inflation continuing to decline sustainably to 2% and the economy remaining near maximum employment, it would probably be appropriate gradually moving towards a more neutral policy stance over time«, highlights the text published this Tuesday. In the rest of the week, one of the most notable references will be the October PCE consumption deflatorthe Fed's preferred measure of inflation, which will be released on Wednesday. The consensus expects a rebound in the general rate up 2.3% from 2.1% the previous month; while for the underlying variable foresees a slight increase from 2.7% to 2.8%. The economic agenda of this session has also included the consumer confidencewhich has improved again in November and stands at 111.7 points compared to 109.6 in October, driven by the optimism in the labor market; while on Wednesday it will be the turn of the Third quarter GDP and of the weekly unemployment data.
COMPANIES AND OTHER MARKETS
At the business level, Best Buy falls 7% after disappoint with its third quarter accounts, which also include a downward revision of their forecasts for the year as a whole. It has also been news that Qualcomm's interest in becoming Intel is cooling due to the complexity of the operation, which has numerous financial, regulatory and operational obstacles, including the assumption of Intel's debt of more than $50 billion. In other markets, oil West Texas rises 1.04% ($69.65) and the Brent advances 0.97% ($73.72). For his part, the euro 0.05% ($1.05) is appreciated, and the ounce of gold earn 0.39% ($2,628). Furthermore, the 10-year American bond yield is revalued to 4.293% and the bitcoin loses 2.93% ($92,118).