Wall Street in pre-Fed rally: Dow Jones +500 points, Nasdaq + 2.6%. Sprint Tesla, betting on eps leap of over 190%

The performance of Wall Street on Fed Day and after the strong volatility that characterized the trend of US equities in the last two sessions was very solid. At about 4 pm Italian time, the Dow Jones advanced by about 500 points (+ 1.40%), to 34,778 points; the S&P 500 advanced 1.95% to 4,441.90 points. The Nasdaq jumped 2.63% to 13,894 points.

Yesterday the Dow Jones finished the session down by 66 points (-0.2%), after falling to -818.98 points in its intraday lows and bouncing up to +226.54 points. The day before, the list had managed to regain the plus sign at the end of the session after having capitulated down to -1,115 points. Also on Monday, the Nasdaq Composite managed to close the session in positive territory after losing during trading up to -4.9%, thus marking the recovery, within the same session, stronger since 2008.

Regarding the Fed’s moves, fed funds rates are expected to remain unchanged in the range between zero and 0.25% after the first meeting in 2022. The US central bank, however, should indicate its intention to raise rates in the meeting of March, for the first time since 2018, due to the steep jump in inflation in the United States.

Great anticipation for the words of the Federal Reserve Chairman, Jerome Powell, which will be uttered during the press conference following the announcement on rates.

Among the market movers also the escalation of geopolitical tensions, with the winds of war in Ukraine: the administration of Joe Biden has deployed thousands of soldiers on the Ukrainian border and Moscow has lashed out against NATO, accusing it of contributing to the escalation of tensions with “hysterical announcements”. In Ukraine, in an interview with ICTV television in Kiev, shot by the Interfax agency, Ukrainian Defense Minister Alexei Reznikov said, however, that a threat of invasion by Vladimir Putin’s Russia
“does not exist”.

“There are risky scenarios – he admitted -” but to date such a threat does not exist “.” To date, the Russian armed forces have not created attack units that would show that they are ready for an offensive tomorrow “, he added. Reznikov.

Among the titles, in the middle of the quarterly earnings season, focus on Boeing, after the publication of the financial statements by the US aerospace giant, which highlighted a positive cash flow for the first time since 2019, however, in the face of a pre-tax charge of $ 3.5 billion related to its 787 Dreamliner program.

Model production problems have effectively forced the planes to the ground for most of the past 15 months.

Boeing suffered a loss of $ 4.29 billion in the whole of 2021, the third consecutive loss on an annual basis, however much less than the deficit of $ 11.94 billion in 2020.

In the fourth quarter of 2021, the net loss was $ 4.16 billion, less than half of the $ 8.44 billion lost in the same quarter a year earlier. Revenue fell 3% to $ 14.79 billion, less than the $ 16.59 billion expected by the consensus. The stock, which reacted positively to the balance sheet in the premarket, is now down.

Purchases on Microsoft, in the aftermath of the quarterly report that beat analysts’ estimates, thanks to the strong growth in turnover of the main segment, the one that includes cloud services and the flagship Azure, the public platform that offers cloud computing services , equal to + 46%.
The result was in line or in some cases higher than analysts’ expectations, allowing the giant to witness, thanks to the positive trend of other segments, an increase in total turnover equal to + 20% on an annual basis to $ 51, 73 billion, better than the $ 50.88 billion expected by analysts polled by Refinitiv, compared with a rise in net profit of 21% yoy to $ 18.77 billion. EPS came in at $ 2.48 per share, on an adjusted basis, better than the estimated $ 2.31 per share.

In the conference call called to comment on the financial results, CEO Satya Nardella confirmed his great interest in the metaverse. Today also the Facebook stock, Microsoft’s rival in the metaverse – not for nothing has it renamed itself Meta -, with the stock rising by more than 2%, in the wake of the purchases that today affect the entire hi-tech sector, and beyond. .

Tesla rallies by more than + 3% pending budget results to be released after the end of the trading day on Wall Street. The consensus of analysts forecasts for the electric car giant founded by Elon Musk an earnings per share of $ 2.35 on a turnover of $ 16.65 billion (in the fourth quarter of 2021), thus estimating a jump in the eps of 193% and a growth in turnover of more than + 55%, according to reports from the Street.com website

Moderna also in rally, + 4% approximately, after eight consecutive sessions of flexion.

Pending the Fed, 10-year US Treasury rates rise a step from the 1.80% threshold, however down from the 1.90% threshold, which they re-grabbed and exceeded last week, for the first time since 2019.

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