Morning View

The consumer price index in the US rose +2.4% year-on-year in January, slightly below expectations.

International

In the United States, inflation in January rose by +0.2% month-on-month and +2.4% year-on-year, slightly below estimates of +0.3% and +2.5%, respectively; while the measurement that excludes food and energy (core) was in line with analysts' consensus projections, registering +0.3% monthly and +2.5% year-on-year. It is important to note that year-on-year figures slowed compared to those recorded in December.

In the run-up to January's inflation data, US Treasury bond yields compressed across all maturities yesterday, mainly in the middle and long end of the curve. Thus, the 1-year bond closed at 3.44% versus 3.45% previously, the 3-year bond stood at 3.50% from 3.57% on Wednesday, and the 10-year bond ended at 4.10% compared to 4.17% previously.

For their part, the main US stock indices also fell yesterday. The trend was led by the Nasdaq with a -2.0% decline, followed by the S&P 500 with -1.6% and the Dow Jones with -1.3%. Thus, so far this year, the first two indices have accumulated declines of -2.8% and -0.2%, respectively, contrary to the Dow Jones, which shows an increase of +2.9%.

 

Fuente: PUENTE Hnos, Bloomberg

In January, the US labor market created 130,000 new jobs, more than double what was projected

International

In the United States, data on the evolution of the labor market in January was released, exceeding expectations. Specifically, 130,000 new jobs were created in the first month of the year, more than double the consensus forecast of 66,000 jobs, and surpassing the 48,000 jobs created in December. Meanwhile, the unemployment rate stood at 4.3% versus the projected 4.4%, representing the lowest figure in the last four months.

In this environment, the yield curve for US Treasury bonds broadened across all maturities, especially in the short term. Thus, the yield on the 1-year bond closed at 3.45% versus the previous 3.39%, the 3-year bond settled at 3.57% up from Tuesday's 3.51%, and the 10-year bond finished at 4.17% compared to the previous 4.14%.

Meanwhile, the main US stock indices traded mixed yesterday, showing slight changes. While the S&P 500 remained flat, the Dow Jones and Nasdaq fell 0.1% and 0.2%, respectively. Year-to-date, the S&P 500 and Dow Jones are up 1.5% and 4.3%, respectively, while the Nasdaq is down 0.8%.

Yesterday afternoon, McDonald's released its Q4 2025 earnings, reporting earnings per share (EPS) of $3.12 and revenue of $7.01 billion, exceeding estimates of $3.03 and $6.81 billion, respectively. Motorola and Cisco also reported EPS and revenue above expectations.

Source: PUENTE Hnos, Bloomberg