In the New York Stock Market, major indexes have entered a rally ahead of major tech stock performance announcements and results of the Federal Open Market Committee (FOMC) meeting.
In full-fledged earnings season, the S&P 500 hit an all-time high during the intraday due to the strong earnings of blue chip companies, but profit-taking sales were also intensified, leading to a slight decline in the three indexes a few minutes before the market close.
On the 26th (hereafter Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 30,937.04, down 22.96 points (0.07%) from the battlefield.
The Standard & Poor’s (S&P) 500 index fell 5.74 points (0.15%) from the battlefield to 3,849.62, while the technology stocks Nasdaq index fell 9.93 points (0.07%) to 13,626.06.
The NASDAQ fell in six trading days.
On this day, the index showed the flow of pre-war and post-weak drugs.
At the beginning of the market, General Electric (GE) and Johnson & Johnson (J&J), who announced their pre-opening results, revealed their performances that exceeded market expectations, raising expectations for blue chip earnings, and the index raised the peak.
In fact, according to Bank of America, more than 70% of the S&P 500 constituents that have already disclosed their earnings have published report cards that exceed Wall Street expectations in terms of sales and profits.
However, the S&P 500 and Nasdaq have been burdened with the level of continued rise, as the S&P 500 and Nasdaq hit record highs based on closing prices on the previous day, and the recent volatility has increased investors’ desire to realize profits.
The sentiment of preference for risky assets also slightly decreased, as Asian stock markets showed a sharp decline last night.
GE, which had been heavily damaged by the novel coronavirus infection (Corona 19) pandemic, released a better-than-expected cash flow, up 2.7%.
During a surge of 10% or more during the intraday, the increase was significantly reduced.
J&J’s 4Q results exceeded market expectations and rose more than 2%.
Thanks to strong performance, 3M also rose 3.3%.
After the market closes, Microsoft, Starbucks, and Texas Instruments will announce their results.
As investors have digested the already announced corporate performance, they have shifted their attention to major technology stocks such as Apple, Tesla, and Facebook, which will disclose their results on the 27th, and this year’s first Federal Open Market Committee (FOMC) meeting, which started from that day.
Interest is focused on whether these large technology stocks will be a catalyst for further gains by surpassing market expectations.
Whether Jerome Powell, chairman of the Fed, will appease or surprise the market, investors are waiting with anticipation and vigilance.
Others are concerned about large volatility on Wall Street.
It was not as volatile as the previous day, but the actual day also showed an uneasy trend, with fluctuations and fluctuations.
The Dow index rose more than 150 points during the intraday, but eventually fell.
The volatility of the stock market has become extreme as some stocks, such as Gamestop and AMC Entertainment, where short selling has been concentrated so far, have recently shown a wild jump.
Individual investors intensively bought stocks against the short selling of hedge funds, and the stock prices of these stocks surged by holding a short squeeze in which hedge funds rush to buy stocks to reduce losses from rising stock prices.
On this day, GameStop’s share price hit an all-time high by 92.7% on the announcement of billionaire investors’ call option purchases.
AMC also showed a 12% increase.
The BlackBerry, another target of individual investors who resisted short selling, also showed a strong trend.
The pandemic situation is not getting better, with concerns about the corona 19 variant deepening.
The number of confirmed cases around the world continues to increase, and containment measures such as travel restrictions to prevent the spread are becoming stronger.
Moderna said the vaccine had some expected effect on the mutant virus found in the UK and South Africa the day before, but it was found to be significantly less effective against the South African virus.
In Minnesota, the first variant found in Brazil has been identified.
The economic indicators released on this day were mixed.
U.S. house prices continued a strong rise at the end of last year thanks to historically low mortgage interest rates despite the Corona 19 crisis.
According to S&P Core Logic Case-Sealer, the National House Price Index in November of last year rose 9.5% year-on-year, and the uptrend was stronger from 8.4% in October.
The price increase rate was the highest since February 2014.
In anticipation of the vaccine launch, the consumer confidence index in January rose from 87.1 in the previous month to 89.3, better than the market forecast of 88.0.
On the other hand, the January manufacturing index for the Richmond Federal Reserve in January fell to 14 from 19 last month.
The scale of expansion and contraction was far above zero, but the market consensus was below 17.
New York Stock Market experts diagnosed that favorable fundamentals such as economic and corporate performance are continuing.
“The overall economic growth trend is still strong, and that this will lead to positive performance is acting as a favorable material for the market,” said Shoqual Bungla Walla, CEO of Goldman Sachs Asset Management. There is an expectation that there will be a stronger growth trend led by “.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 23.54, up 1.51% from the previous trading day.
/yunhap news