Wall Street takes a breather on its unstoppable climb to record highs. A day after welcoming the new US president, Joe Biden, with a triplet of records, the indices falter with narrow movements to both sides of the graph. The good tone of the macroeconomic data published this Thursday moved to a second place amid a more cautious general sentiment.
The speech delivered by the president of the European Central Bank (ECB), Christine Lagarde, from the other side of the Atlantic, contributed especially to this tone. Warnings about dire consequences that could have a mismanagement of the third wave of the Covid-19 pandemic and the persistent delay in the release of fiscal stimuli has a perfect parallel in the US.
While the largest economy in the world is still very aware of what the first steps that the new tenant of the White House will display in these lines, narrow swings in the large indexes. He Dow Jones 0.04% was left to stand at 31,176 points. He S&P 500 a shy 0.03% is scored and holds the 3,853 points. He Nasdaq spider 0.5% upstream, very close to the 13,530 integers.
While investors they had celebrated Biden’s arrival in style for the US presidency, waiting for the fine print of his economic measures moderates enthusiasm. This same Thursday it was known that, in the style of what happened in several European countries, the Democratic leader will sign a decree to suspend evictions of defaulters for the duration of the pandemic.
Meanwhile, 900,000 Americans have applied for unemployment benefits for the first time throughout the last week. A figure that slightly improves economists’ forecasts, but remains above what the last few months had indicated. Even though the Philadelphia Fed Manufacturing Index for January it rose to 26.5 points, caution was imposed.
Accounts and redemptions
For the corporate sphere, one of the protagonists of the session is Boston Scientific, which rises 2.35% after announcing the purchase of the company Preventice Solutions for $ 925 million. An amount that could be increased by another 300 million dollars more depending on certain business milestones established in the transaction.
The relief in the season of annual results has taken Alcoa, America’s largest aluminum producer. Although the company registered losses of $ 170 million, the figure is a 84.9% lower than a year ago. Despite everything, the numbers do not convince investors, as they penalize their shares with falls of 12.4%.
The oil services company also lists accounts Baker hughes, which closed 2020 with net attributable loss of $ 9.94 billion vs. profit from 128 million a year ago. The company has left 1.49% on Wall Street after dodging the most pessimistic market forecasts and outlining its business forecasts for this year.
The actions of the airline Alaska Air Group yield 1.5% after having reported that finally will receive 533 million dollars from the Federal Treasury to avoid bankruptcy. Specifically, these funds will come out of the payroll support program, the equivalent system to the Spanish ERTE established by the US administration.