Construction, benefited in the Stock Market by Biden’s plan

Companies in the infrastructure and construction sector on Wall Street earned $ 6.733 million in market value on Monday, after the US House of Representatives approved the infrastructure plan proposed by President Joe Biden.

The Lower House approved the initiative to allocate up to 1 billion dollars in infrastructure works. This project includes investments in roads, bridges and railways.

This program favored the sector’s issuers such as Caterpillar, a manufacturer of construction machinery, whose shares gained 4.04 percent.

Shares of Quanta Services, which provides infrastructure services, rose 1.96%; SBA Communications, provider of wireless services for infrastructure, gained 1.10%; Energy Transfer advanced 0.86% and the oil company ConocoPhillips, 0.64%, while American Tower and Union Pacific rose 0.33 and 0.21%, respectively.

The combined capitalization value of these companies reached $ 551.858 million, a gain of $ 6.733 million in one day, compared to 545.125 million last Friday.

Jannet Quiroz, deputy director of Economic Analysis at Monex, explained that “an increase in government spending, added to a stimulus to the construction sector, generates an expectation that the United States economy continues to improve, in addition to the fact that there is already talk of an expansion, since it has already come out of the crisis due to the Covid-19 pandemic ”.

“We remain constructive on the themes of cities of the future and mobility of the future, as the overall fundamental background remains strong. After months of intense negotiations and after many failed attempts in previous years, the House of Representatives passed an infrastructure bill, now it is up to President Biden to sign it, which should happen shortly, ”said Carsten Menke, Research Director. by Next Generation, on Julius Baer.

In Mexico, earnings for the industrial sector were led by Cementos Mexicanos (Cemex) with a 10.20% increase and a gain in market value of 19,442 million pesos, followed by Cementos Chihuahua, whose shares advanced 4.38% with a gain of 2,143 million of pesos in market cap.

“In the third quarter of the year, Cemex had a significant increase in revenues, driven mainly by the United States division, with an increase of 10.3%, as a consequence of the investments in infrastructure made in that country. The infrastructure plan could generate synergies for the next few years for Cemex, ”Brian Rodríguez, a stock market analyst at Monex, said in a document.


On Wall Street, the major indices rose. The Dow Jones industrial average gained 0.29%, to 36,432.22 points; the S&P 500 advanced a slight 0.09%, spinning eight sessions to the rise, in which it accumulates an increase of 3.25%; and the NASDAQ Composite was just up 0.07% to 15,982.36 points.

“It was a positive reaction to the expectation that there will be higher spending on construction that would generate more demand for raw materials. However, caution was maintained in anticipation of the release of inflation data in the United States, which will be key to the Federal Reserve’s monetary policy decisions, ”commented Janneth Quiroz.

Within the S&P 500, the sector with the highest gains on the day was materials with 1.23%, followed by Energy with 0.85% and technology with 0.58 percent. On the contrary, the public services segment fell 1.45% and discretionary and basic consumption lost 1.38 and 0.94% respectively.

In Mexico, the Mexican Stock Exchange ended up missing a 0.53% gain at 52,251.49 points, closing above the 52,000 point level for the first time since October 26. The Institutional Stock Exchange gained 0.39% to 1,076.96 points.

“The news is positive because with more construction, there will be more demand for supplies and services. But approval is lacking in the Upper House, ”Janneth Quiroz said.

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