A roundup of Monday’s stock market results from across the region
🗽 On Wall Street:
U.S. stock markets started the week in good spirits, after last Friday’s S&P 500 brushed bearish territory and closed a seventh consecutive week of losses, the worst streak since 2001.
Banks led the day’s rally on Monday after JPMorgan (JPM) chief Jamie Dimon said the “storm clouds” over the U.S. economy could dissipate.
For the banker, there are a number of factors that are creating a unique combination, between monetary and fiscal stimulus, high inflation and the Federal Reserve’s tightening.
Despite this, he added that the U.S. economy remains solid and that potential obstacles to growth are not set in stone.
Stocks such as JPMorgan, Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C) closed the day higher.
The S&P 500 closed the day up 1.86%, while the Dow Jones Industrials gained 1.98% and the Nasdaq Composite (CCMPDL) advanced 1.59%.
The market’s good mood also received a boost from U.S. President Joe Biden, who said he will review Trump-era tariffs imposed on imports from China.
🔑 The Day’s Key Events:
Oil prices continued their advance, albeit moderately, as the European Union failed to reach a consensus to block imports from Russia
Although prices rose just under 1% in the session, strong gains have slowed since Hungary began opposing a full embargo on crude oil leaving Moscow.
That country’s government said any progress in talks will probably be delayed until next month, according to people cited by Bloomberg who requested anonymity.
Bob Yawger, head of the futures division at Mizuho Securities USA, believed a European embargo on Russian oil would likely send crude prices to record highs, although they are currently “stuck” in a range of $105-$116.
🥇 The Leader:
The optimism seen in the U.S. stock markets bled over into Latin American markets, on in a day in which almost all the region’s main indices ended with gains.
The rebound, after a mixed day last Friday, was led by Chile’s Ipsa (IPSA), which rose by almost 3%, driven by the performance of the industrial, materials and communication services sectors.
The Chilean index not only benefited from the positive international mood, but also from the comments that the draft of the new Constitution has received. Bank of America said last week that “it was better” than they expected, while analysts consulted by Bloomberg Línea said that a reasonable draft had been achieved.
Brazil’s Ibovespa (IBOV) also closed with gains, thanks to the boost given by the energy, communication services and materials sectors.
📉 A Bad Day:
Mexico’s stock market was the only one to fall in Latin America, in a volatile day in which it traded in the green for most of the session, influenced by the good mood in the United States.
However, the performance of the materials sector, which fell by more than 2%, dampened the performance of the S&P BMV/IPC (MEXBOL).
Shares of Grupo México (GMEXICOB), Arca Continental (AC*), Wal-Mart de México (WALMEX*) and Cemex (CEMEXCPO) weighed down the index’s performance.
🍝 For the Dinner Table Debate:
The world is becoming increasingly interconnected and smartphones have been a fundamental tool in making this happen. However, one trend is making a comeback among consumers: a return to basic cell phones.
A recent report by SEO software company SEMrush noted that so-called ‘dumb phones’ - those lacking advanced technology and functionality - are making a comeback.
The report noted that between 2018 and 2021, Google (GOOGL) search for these types of cell phones saw 89% growth, a figure that is supported by a 2019 Counterpoint report that suggested approximately one billion such phones would be sold between then and 2021.
GMA, an IT support and services company, indicated that the renaissance of these devices cuts across reasons such as “fashion and nostalgia”, as well as the need to have greater focus on everyday productivity.
