Wall Street opens to the upside driven by technology

New York, Jul 31 (EFE) .- Wall Street opened this Friday in green and the Dow Jones, its main indicator, was up a slight 0.11% in an opening marked by the advances of the main technology companies after presenting its results yesterday, that were above analyst expectations.

Five minutes after the start of operations on the New York Stock Exchange, the Dow Jones advanced 27.93 points, to 26,341.58, while the selective S&P 500 gained 0.3% or 9.79 integers, up to 3,256 , 01.

For its part, the Nasdaq market composite index, where the main technology companies are listed, rose 0.95% or 100.35 units, to 10,688.16 as a whole.

The New York parquet opened with moderate profits, supported by the impressive results of three of the four “Big Tech”, Apple (5.41%), Amazon (4.61%) and Facebook (7.03%), only overshadowed by the Alphabet’s stock market performance (-4.93%), whose results were worse than expected.

Together, the tech giants have a market capitalization of more than $ 5 trillion and some experts predict that the good results could lead to massive investor sales to reap profits.

Likewise, other analysts point to the distance between the real market and the technological ones, and point out that the titles of these companies are overvalued and that there could be a bubble around these companies.

“Tech companies are giving us a potentially distorted view of the stock market. For every one of these companies that goes up in the S&P 500, there are plenty that aren’t,” Rabobank senior strategist Jane told the Wall Street Journal. Foley.

On the downside, investors were weighed by the lack of deals in the United States Congress, where Democrats and Republicans have yet to reach an agreement on the new $ 2 trillion stimulus package.

The main stumbling block between the two parties is that of extraordinary unemployment aid that expires this Friday without any measure to replace it.

On the other hand, the contraction of 32.9% of the gross domestic product of the United States known yesterday and the weak growth in job creation, which weighed down on actions linked to economic recovery and retail trade, continued to cause some pessimism.

By sector, gains were led by non-essential goods (1.09%), technology (0.9%) and communications (0.21%) while energy losses suffered (-1.85%) , the industrial (-0.81%), the real estate (-0.61%) and the financial (-0.59%).

Among the top 30 listed companies in the Dow Jones, in addition to Apple, earnings were led by Merck & Co (1.39%), which today presented quarterly results and Intel (0.1%).

In red, the losses of Caterpillar (-3.53%), Chevron (-3.31%) stood out, the results of which disappointed analysts, Microsoft (-1.34%) and JPMorgan Chase (-1.27%).

In other markets, Texas oil rose at this time 0.83% to $ 40.25 a barrel; gold stood at $ 1,979 an ounce; the yield on the 10-year Treasury bond rose to 0.563% and the dollar gained some ground against the euro, with a change of 1.181.

(c) EFE Agency