Wall finds an upward escape despite the rally of odds

LAST UPDATE 20:30

Key Wall Street indicators continue to rise on Tuesday, overcoming the initial nervousness that forced the S&P 500 and Nasdaq to losses in the beginning, with investors assessing the impact of the rally on US bond yields as the Federal Reserve takes a fighting position to face the highest inflation in 40 years.

Bond yields have risen sharply this year as investors wait for the Federal Reserve to launch a rather aggressive campaign to tighten its policy in the coming months, with several analysts now seeing the first rate hike in March at 50 points. base. The 10-year yield in the US reached 1.97% today, a level last recorded in 2019.

The new jump in yields comes as data to be released on Thursday on inflation is expected to show an annual price rally of 7.2%, the highest level since 1982.

Meanwhile, data released today in the US showed that the trade deficit widened by 1.8% in December to $ 80.7 billion compared to analysts estimate in a WSJ poll for $ 82.9 billion.

Overall for 2021, the deficit climbed 27% to a record $ 859 billion as the strong recovery of the US economy boosted imports, despite rising prices due to high inflation.

Indicators – Statistics

On the board, the Dow Jones industrial average adds 321.02 points or 0.93% to 35,416.56 points, while the broader S&P 500 gains 27.53 points or 0.61% to 4,511.37 points. The technology Nasdaq is up 128.65 points or 0.91% at 14,145.88 points.

Of the 30 stocks that make up the Dow Jones industrial average, 20 are moving with a positive sign and 10 with a negative. The biggest gain was recorded by Amgen with gains of $ 20.04 or 8.97% at $ 243.57, followed by American Express at $ 192.40 with gains of 2.41% and JPMorgan Chase at $ 155.68 with an increase of 1.71%.

The three stocks with the biggest losses are Chevron (-1.37%), Nike (-1.37%), Nike (-0.60%).

For the rest of the day, the National Association of Independent Companies said the Small Business Optimism Index fell 1.8 percentage points in January to 97.1, an 11-month low. The Union reported that 61% of small businesses raised prices at the beginning of the new year. This is the highest rate since 1974.

In business development, Nvidia Corp. canceled Arm Holdings’s planned $ 40 billion acquisition due to reservations voiced by regulators. At the same time, Nvidia announced that it plans to record charges of $ 1.36 billion in the first quarter.

Meanwhile, the title of Pfizer Inc. is down 3.65% after the announcement of the results for the last quarter and the forecasts for the sales of the vaccine that it has developed against the coronavirus.

The Harley-Davidson title also rallied 15% after the motorcycle manufacturer announced that it had recorded profits in the last quarter against losses in the corresponding period last year.