Wall Street is betting on progress before the giant tech accounts

The Dow JonesWhich opened lower, rose 0.48% mid-morning to 31,650 points. The Standard & Poor’s 500 0.95% at 3,833 points Nasdaq 100 It rises 1.58% to 11,125 points.

Yesterday, the major New York indexes managed to close higher: the Dow Jones rose 1.3%; The S&P 500 is up 1.2% with nine sectors up from 11; and Nasdaq 0.9%. But caution is returning to the market with the accounts of the big tech companies, which will be closely watched. Reports the alphabet s Microsoft It will be known on Tuesday after the markets close, and tomorrow it will be his turn Target (Facebook) And Thursday results manzana s Amazon. Given the sheer size and market value of these companies, any move is likely to boost the market in the future.

Although the sector has struggled so far this year, a significant move to the upside and a sustained rally for the broader market hinges on the re-emergence of “leadership” in the sector, notes Trost’s Keith Lerner. ICT services, to which many of these names belong, account for approximately 26% and 8% of the weight of the S&P 500, respectively. “For the market as a whole to experience a strong recovery, technology companies need to be involved, because this is a very important sector,” says Lerner.

However, “what we’ve seen over the course of the year is that premiums for equity risk have actually shrunk,” warns Christian Mueller-Glesman, managing director of portfolio strategy at Goldman Sachs, on Bloomberg TV. “That makes you more vulnerable if you disappoint in terms of growth, cash flow, etc. So far it hasn’t really happened, but all the major indicators are pointing to risks in that direction.”

Outside the technology sector, Tuesday morning accounts General motors, which far exceeded Wall Street earnings expectations for the third quarter, but fell short of revenue expectations. Thus, EPS is $2.25, adjusted for expected $1.88. Revenues amounted to 41,890 million dollars, below expectations of 42,220 million dollars.

UPS’s accounts go in the same direction: profits that exceed analyst expectations and revenue that falls short. Earnings per share were $2.99, versus $2.84 expected, and revenue was $24.16 billion, versus $24.3 billion expected.

UPS also reaffirmed its full-year revenue forecast of $102 billion and an adjusted operating margin of about 13.7%, despite what CEO Carol Tomei described as a “very dynamic” macroeconomic environment.

Actions Coca-Cola company 3% increase. The popular soft drink company beat Wall Street’s earnings estimate by about 7%, at 69 cents a share, versus an expected 64 cents. The company also reported revenue of $11.05 billion, 5% more than its forecast of $10.52.

Coca-Cola expects inflation and currency exchange to continue to negatively impact expenses and revenues. The company doesn’t plan to release 2023 guidance until next year, but it has forecast comparative earnings per share growth of between 6% and 7%, up slightly from 5% or 6% previously.

One of the negative notes for today is for Xerox Holdings. Shares of the office equipment maker fell 8.2% after it reported adjusted quarterly earnings of 19 cents per share, against a consensus estimate of 40 cents. Xerox has been affected by rising costs and supply chain constraints.

So far this earnings season, companies have shown that they are doing better than expected. However, this is partly due to the fact that analyst earnings estimates have been cut in recent months, as companies grapple with currency and other growth headwinds.

Besides the quarterly earnings season, the market is also starting to take a nefarious look at the Federal Reserve’s monetary policy meeting next week. Yesterday’s manufacturing and services data were disappointing, indicating that the rate hike is starting to dampen activity. Along the same lines, today’s investors learned shortly before the opening that August home prices rose 13% from the same month last year, according to the S&P CoreLogic Case-Shiller Home Price Index. That number is down from the 15.6% annual increase in the previous month. In fact, the difference of 2.6% in those monthly comparisons is the largest in the history of the index, which was launched in 1987.This means that price gains are slowing at a record pace.

Federal Reserve officials have entered a closing period before the central bank meeting, which is expected to raise interest rates by 75 basis points. However, investors are beginning to speculate that the central bank may be nearing the end of its aggressive tightening campaign.

“Investors are increasingly confident that inflation will subside as consumers rethink massive purchases,” says Edward Moya, chief market analyst at OANDA. “Fed rate hike expectations will remain volatile, but expectations are growing that a weaker economy will allow the Fed to pause its tightening after the February policy meeting.”

The market is also expecting a massive 75 basis point rise from the European Central Bank on Thursday, despite the fact that many economists believe a recession has begun in the Eurozone.

In fixed income, which is always highly sensitive to changes in monetary policy, the yield on 10-year US debt securities drops slightly to 4.1837%, while the yield on two-year bonds is 4.4856%.

Oil prices fell on Tuesday in the face of renewed fears of a recession due to the situation in China and the United States. While West Texas a barrel fell 0.28% to $ 84.41 a barrel Oil futures The benchmark Brent index in Europe fell 0.19 percent to $91.04.

The dollar advances 0.14% against the euro until an exchange rate of $0.9858 is determined for each community currency.