The main Wall Street indices closed July with their best advance since November 2020, mainly because investors regained optimism after better-than-expected quarterly results from companies, as well as the expectation that the Federal Reserve will not accelerate its rate of rises in your interest rate.
The Dow Jones closed at a level of 32,845.13 points, a growth of 6.7% compared to June; the S&P 500 reached 4,130.29 points, an increase of 9.1%. Both indices recorded their best monthly performance since November 2020. On the other hand, the Nasdaq ended the day at 12,390.69 points, up 12.3%, its best performance since April 2020.
“Better-than-expected earnings from Amazon and Apple boosted the Nasdaq and provided more fuel for stocks to add to their recent gains. While earnings estimates for this year and next have fallen since the reporting season began, the results have been better than feared, given the growth slowdown we saw during the quarter. Edward Jones.
Among other things, specialists see a good start for the second half of the year, since the rebound in shares probably suggests that a lot of bad news had already been priced in. The recent stabilization may turn into a lasting rebound depending on the path of inflation and the pace of Fed tightening.
“US stocks advanced for the third day in a row, with the S&P and Nasdaq Composite posting their best monthly performance since November 2020, buoyed today by gains from tech majors Apple and Amazon as markets ignore another rise in key inflation data,” analysts at Hammerstone Markets said.
In Mexico, the main index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, ended the seventh month of the year at a level of 48,144.33 points with a monthly increase of 1.3%, while the FTSE BIVA ended close to the 1,000 points with a growth of 1.4%. For both indices it was their best positive variation since March of this year.
The main shares that gained during July were Banco del Bajío, with an increase of 18.7%; Inbursa, with 17.6%; Regional, with 17.4%; Grupo Aeroportuario del Pacífico (GAP), with 15.8% and Gruma, with 13.8%. On the other side of the coin, the titles with negative performance were Qualitas, with 7.2%; FEMSA, with 6.8%; América Móvil, with 5.7% and Genomma Lab, with 5.5%.
Oil prices have their biggest drop in eight months
International oil prices closed July at a level close to 100 dollars per barrel and with their strongest falls since November 2021, as the financial reports of Exxon and Chevron were optimistic about the prospects for crude oil demand and about expectations that OPEC would not increase production in September.
The West Texas Intermediate (WTI) closed at a price of 98.42 dollars per barrel, which meant a monthly drop of 6.8%, while the Brent ended at a price of 103.59 dollars per barrel, a drop of 9.8% compared to the closing of June. This is its second monthly fall with an accumulated drop of 14.2 and 15.7%, respectively.
The Mexican mix closed in the same trend with a price of 98.33 dollars per barrel, with a decrease of 6.2% in July.
“With no major signs of fuel demand destruction, it looks like oil will soon find a home above $100 a barrel. The US oil rig count posted a six-week gain, bringing the total to 605 rigs, but that should do little to suggest that this market will find equilibrium anytime soon,” said Edward Moya, an analyst at Oanda.
