Wall Street falls: Rate concerns overshadow earnings season

Foto del autor


Wall Street quotes falls this Wednesday after Profits on Tuesday, led by the technologyas you discount the Tesla business results and directs his attention towards those of Goalwithout losing sight of the macroeconomy. Despite the good results known to date, stocks are suffering from the forecast of higher interest rates for longer periods of time, while the yield on the 10-year American bond rises above 4.65%. The technological valuesthose most recently punished by profit taking, are leading the rises in the markets thanks to the macroeconomic and business factors that are starting to come into play.
tesla presented its accounts for the first quarter of the year this Tuesday, after the market closed. Electric car manufacturer numbers did not meet expectations of the market, but its shares soared 12% in the session thanks to the «more affordable models» ad. «Investors overlooked the unpleasant results and focused on the plans to accelerate the launch of new modelswhich include cheaper cars,» comments Ipek Ozkardeskaya, senior analyst at Swissquote Bank. For Link Securities experts, «Tesla numbers were bad, even worse than expected both at sales and profit and margin levels. However, the fact that the company announced that it plans bring forward the launch of a low-priced car to 2025 is causing Tesla shares to rebound.» «This means that the company may be able to use its gigantic production capacity more efficiently, while maintaining the original proposal of its high-end models. On the other hand, it also speaks to fears that the inventory buildup could continue to pressure margins for next year,» says Thomas Monteiro, senior analyst at Investing.


This Wednesday, also after the market closes, Goal will be in charge of making known their quarterly results with all eyes on their advances in artificial intelligence (AI). «The interest will focus on evaluating the effectiveness of Meta's investments in advertising technologyincluding artificial intelligence, and how they have contributed to the profitability of advertisers' advertising spending,» says Sam North, market analyst at eToro. Likewise, the expert believes that «analysts are also eager to see if Meta can maintain your trajectory growth in user engagement across all platformsespecially Facebook and Instagram.»


The strength of the economy and the persistence of inflation have led investors to rule out a first rate cut by the Federal Reserve before the summer. Now everything seems to indicate that the start of monetary easing will take place from September and for this the macro data that is known will be decisive. In this sense, the market will be very attentive to the US First Quarter GDP (Thursday) and PCE consumption deflator (Friday), the Fed's preferred inflation measure, which will be key to the future of the central bank's 'roadmap'. With respect to US GDPit is estimated that has grown at a rate of 2.2% in relation to the fourth quarter of the previous year and in annualized terms. Refering to PCE inflationit is expected there will be rebound in general rate in March to 2.6% from 2.5% in February, while a slight decrease is expected for the underlying variable to 2.7% compared to 2.8% in the previous month. The economic agenda also includes other notable references such as weekly unemployment claims (Thursday) and University of Michigan consumer sentiment (Friday).


In the current business situation, in addition to the rise of Tesla, those of Boeing, who earns 4% after reporting a 16% reduction in losses in the first quarter of the year.
In other markets, oil West Texas drops 0.32% ($83.09) and the Brent gives 0.16% ($88.28). For his part, the euro depreciates 0.02% ($1.0696), and the ounce of gold loses 0.35% ($2,333). Besides, the 10-year American bond yield is revalued to 4.636% and the bitcoin 0.68% ($66,026) is left.