Wall Street opens 2023 with losses

The New York Stock Exchange started the year in the red, with just over 200 companies in the S&P 500 index losing $287.983 million in market value during the first trading session of 2023.

The S&P 500 lost 0.40% to 3,824.14, dragged down by the energy and technology sectors. The NASDAQ Comnposite technology index fell 0.76% to 10,386.98 points, while the Dow Jones industrial index fell just 0.03% to 33,136.37 points.

Monday was a holiday in the American Union, so Wall Street did not operate.

The biggest loser within the S&P 500 was electric vehicle maker Tesla, whose shares plunged 12.24% to $108.10, for a loss in market capitalization of $47.619 million. This, after the company’s results did not meet market expectations.

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On Monday Tesla announced that during 2022 it delivered 1.31 million electric vehicles, a figure that, although it represents a year-on-year growth of 40%, fell short of the expectation that it would deliver 1.36 million cars.

Demand is beginning to crack for Tesla and it will need to adjust and lower its prices in China, which remains the key to its growth,” Dan Ives, an analyst at Wedbush Securities, told Reuters.

With the fall this Tuesday, Elon Musk’s company continues to deepen the losses it had last year, in which it lost 672,000 million dollars in market value, since its shares erased almost a third of its value (-65.03% ).

Tesla’s production was affected in 2022 by the persistence of the Covid-19 in China that caused closures and disruptions in its factories in the Asian country, in addition to the fact that the increases in interest rates caused a reduction in demand for its cars, according to company executives.

Despite the fall of Tesla, the sector that lost the most in the S&P 500 was not Consumer Discretionary (to which it belongs), but Energy (-3.63%), given the drop in the international price of oil due to the weak economic data in China.

The Technology sector lost 1.01%; that of Discretionary Consumption, 0.59%; that of Health, 0.29%; that of Basic Consumption, 0.24%, while that of Materials 0.1 percent.

In contrast, those that won were: Communication Services (1.39%), Financial (0.38%), Real Estate (0.31%), Industrial (0.21%) and Public Services (0.01%).

Penoles earns 7%

In Mexico, the stock market closed the second session of the year with gains, thus adding a positive balance in the new year.

The S&P/BMV IPC of the Mexican Stock Exchange advanced 0.11% to 49,046.97 units, while the FTSE Biva of the Institutional Stock Exchange barely rose 0.04% to 1,024.39 points.

The company that rose the most was the mining company Industrias Peñoles (7.39%), due to the increase in gold prices during the session, which reached maximums of six months.

In contrast, the low-cost airline Volaris was the one that lost the most (-6.15%).

In this regard, analysts consulted agreed that uncertainty has continued since the end of last year on the issue of cabotage in Mexican airspace and “most likely, the fall in Volaris shares on Tuesday is due to that issue.”

In the first two business days of the year, the S&P/BMV IPC has risen 1.20%, while the FTSE Biva 1.21 percent. In 2022 they lost 9.03 and 8.09%, respectively.

“The market remains awaiting the US employment data that will be published on Friday morning of this week,” said Gabriela Siller, director of Analysis at Banco Base.

(Con infortion of Agencies)

sebastian.diaz@eleconomista.mx