Wall Street rose after the mixed session on the eve of the day, with the three main US equity indices testing new records after the disclosure of the data relating to US retail sales.
In June, the indicator rebounded by 0.6%, after the decline in May of -1.7% (a figure revised down from the -1.3% previously disclosed). The trend was much better than analysts’ expectations, who had forecast a drop of 0.4%.
The Dow Jones exceeds the 35,000 point mark for the first time ever, rising just before 4pm Italian time by just 0.07% to around 35,012 points; the S&P 500 advanced by 0.09% to 4,363 points, while the Nasdaq strengthened by 0.17% to 14,567 points.
Among the headlines, we highlight the rumors of the Wall Street Journal, according to which the chip giant Intel is in talks to buy GlobalFoundries for a value of about $ 30 billion.
This would be the largest acquisition ever made by the group. Intel is up by about 1.7%.
The US quarterly earnings season is proving to be positive, but has not been able to lift operator sentiment too much.
For the 18 companies trading on the S&P 500 that released their balance sheets this week, earnings per share were, on average, 18% higher than expected. However, the stocks of those same companies saw their stocks fall by 0.58% on average.
The performance of the S&P 500 index was weak which, on a weekly basis, marked a slight decline of 0.2%.
Among the company stories, focus on Tesla, after founder and number one Elon Musk made it clear that the Cybertruck electric van project could also flop. In a conversation on Twitter, Musk said however that “the product design” will remain as shown during the display of the truck and that, in any case, he “does not care” if there is any risk of his Cybertruck flopping. because he loves design anyway.
Tesla stock is slightly down.
Among other Big Tech, increases for Apple (however weak), Microsoft, while Facebook is under pressure along with Netflix; Flat Alphabet. Positive day for GameStop and the other AMC Entertainment stock meme.
Didi stock in sharp decline on Wall Street, with the Adrs reporting a drop of almost -7%, after the officials of seven Chinese government agencies raided the offices of the ride-sharing giant. Officials conducted an inspection to identify any cyber security risks. Chinese firm Didi Chuxing landed on the New York Stock Exchange on June 30, launching one of the largest US IPO deals in the past decade.
Focus also on Moderna, producer of anti-Covid-19 vaccines, whose stock will make its entry into the S&P 500 index starting from the beginning of the Wall Street session on 21 July.
Moderna will replace Alexion Pharmaceuticals, whose acquisition by AstraZeneca is nearing completion. The Moderna stock rose by approximately 6% after having flown by almost 9% in the pre-market.
Attention to the statements of Janet Yellen, US Treasury Secretary and former Federal Reserve Chairman, in an interview with Cnbc:
“There will be several more months of rapid inflation. So, I’m not saying this is a month-long phenomenon. But I believe that in the medium term we will see inflation fall back to normal levels. Obviously, we have to look at it carefully ”.
That said, in his US Congressional hearings this week, Fed number one Jerome Powell pledged his continued support for the American economy, confirming a dovish approach. Stabilization of interest rates on Treasuries, with 10-year rates exceeding the 1.32% threshold.