Wall Street is trading with a mixed sign this Tuesday after the moderate earnings Monday, led by technology stocks that led to the Nasdaq to mark new highsand as investors focus their attention on the president of the Federal Reserve (Fed), Jerome Powellin it working market and in Teslawhich is up after exceeding expectations with its car deliveries in the second quarter. However, and as has been usual in recent months, «The evolution of the indices was somewhat misleadingsince this Monday they were again the major technology sector stockswith Tesla, Apple, Microsoft and Amazon leading the way, driving the indices higher,» say Link Securities. However, the weakness of the latest US economic data, such as the Manufacturing sectorhas raised expectations that The US central bank begins to cut interest rates at their meeting September. Therefore, the market has closely followed the Powell's speech at the Sintra Forumthe meeting of central banks organised by the ECB in the Portuguese city, where he welcomed the «progress» achieved in terms of inflation, although he called for greater «confidence» regarding the return of inflation to the 2% target in order to begin rate cuts. «We have made considerable progress and We have put inflation back on track towards our target«Powell said, but declined to give a precise answer on the month in which rate cuts would begin.
Michael Brownsenior research strategist at Pepperstone, notes that «Federal Reserve Chairman Powell's remarks at the ECB's annual Sintra forum this afternoon seemed, at the margin, a«a little more moderate than those made recently.»
«Comments of this type appear to further open the door to a rate cut in Septemberespecially now that Powell is also signaling the risk associated with waiting too long to make the first rate cut. A weaker-than-expected jobs report on Friday, if it comes to pass, would likely further cement the case for such a cut, to which markets are assigning a probability of about 70% – perhaps a bit understated,” he adds.
THE LABOUR MARKET, THE STAR OF THE WEEK
The macro agenda for the week has the labour market as its protagonist. This Tuesday the Job Openings and Labor Turnover Survey (JOLTS) May, which has placed vacancies at 8.140 million compared to 7.919 in April, while on Wednesday it will be the turn of the data for ADP private employment June, along with the weekly unemployment claimsHowever, the market focus will be on the official employment reportwhich will be announced on Friday, and for which a drop in job creation is expected to 195,000 from 272,000 in the previous month.
TRUMP AND PARTIAL IMMUNITY
Another point of attention for investors is Donald Trumpespecially after the Supreme Court of the United States has ruled that presidents have certain criminal immunity for acts carried out in the exercise of his office. The sentence comes a few months before the presidential elections in November in which Trump aspires to return to the White House and days after a televised debate that has sown doubts about the state of form of the current president, Joe Biden.
COMPANIES AND OTHER MARKETS
In today's business, Tesla rises more than 6% on Wall Street after exceeding expectations with its car deliveries in the second quarter. In other markets, oil West Texas rises 0.59% ($83.87) and the Brent advances 0.57% ($87.09). For its part, the euro depreciates by 0.06% ($1.0731), and the ounce of gold down 0.2% ($2,338). In addition, the 10-year US bond yield relaxes to 4.424% and the bitcoin loses 0.97% ($62,599).