Wall Street is trading with a mixed sign this Monday after moderate gains on Friday, and after ending a very bullish weekmarked by Donald Trump's victory and the Federal Reserve (Fed) rate cut. Thus, and once these two major events have been discounted, investors once again focus their attention on macroeconomics, with the Dow Jones surpassing the 44,000 points and the S&P 500 conquering the 6,000 integers. In this sense, the great reference will be the October CPIfor which a slight rebound is expected in general rate up 2.6% from 2.4% previously; while it is expected that the underlying variable remains at 3.3%. «If the estimates are accurate, could reduce expectations of a Fed rate cut in Decemberas they would suggest that there is still inflation in the US system before Trump's economic policies become law next year,» says Kathleen Brooks, research director at XTB. The data, therefore, will be decisive for the future Fed movesespecially after Trump's return to the White House and the measures he proposes in terms of trade, immigration, regulatory and fiscal policy can cause, according to experts, a rebound in inflation and, therefore, end up affecting the monetary easing cycle of the central bank. At the press conference after the meeting on November 7, Jerome Powellpresident of the Fed, stated that «In the short term, elections will have no effect on our decisions«However, the market will be very attentive to his appearance, on Thursday, at a symposium in Dallas, in search of any clues about the next steps of the organization. The agenda will also include the publication of the production prices of October and weekly unemployment claims (Thursday); as well as the retail sales (Friday).
TECHNICAL ANALYSIS
Trump's victory has been received with optimism for New York indiceswhich have shattered historical highs. Thus, the Dow Jones has cut off, with a stroke of the pen, the short-term correction. «Its technical aspect is unbeatable since it moves freely ascent, without any resistance in its path. For the coming weeks We do not rule out that it could reach 46,000 points«, nor do we rule out taking a break to clean up the latest increases a little before continuing with its upward climb,» indicates César Nuez, technical analyst at BitcoinDynamic. Nasdaq He has also welcomed Trump with open arms. The strong increases of the last sessions have served to pulverize all time highss that presented at 20,690 points. «The selective left a bearish gap last Thursday and, with Wednesday's, it has given shape to a 'bullish island' that makes us think of a extension of the increases to the level of 23,000 points. Its technical aspect is impeccable,» adds the expert. S&P 500 It's also a shot. «Right now cannot offer a better technical aspect since it moves in free rise, without any resistance in its path. For the next sessions we do not rule out ending up seeing a extension of profits to the level of 6,200 points. Any profit taking would be within the norm. We will not see a sign of weakness as long as it remains trading above 5,696 points, the minimum set this week,» says Nuez.
COMPANIES AND OTHER MARKETS
At the business level, the earnings season will feature the publication of the quarterly figures for Home Depot (Tuesday) and Walt Disney (Thursday), among other companies. Besides, Tesla continues celebrating Trump's victory on the stock marketand this Monday it rises 8% after appreciating 29% over the past week. On the other hand, shares of pharmaceutical company AbbVie sink 12% after the company reported that its schizophrenia drug has not passed the tests it was conducting. In other markets, oil West Texas drops 2.62% ($68.53) and the Brent gives 2.42% ($72.10). For his part, the euro depreciates 0.61% ($1.0652), and the ounce of gold falls 2.15% ($2,637). Furthermore, the 10-year American bond yield relaxes at 4.306% and the bitcoin rises 3.82% ($82,310).