somrat4030
Well-known member
- Feb 8, 2022
- #23
Feb-08, 2022, US Stock News And World Economical Updates, By Forex Forum.
The S&P 500 and the Nasdaq opened lower on Tuesday as mixed earnings and fresh declines in shares of Meta Platforms added to jitters ahead of inflation data this week that could offer clues on the U.S. Federal Reserve's path of interest rates.
The Dow Jones Industrial Average (.DJI) rose 69.55 points, or 0.20%, at the open to 35,160.68.
The S&P 500 (.SPX) opened lower by 3.85 points, or 0.09%, at 4,480.02, while the Nasdaq Composite (.IXIC) dropped 31.24 points, or 0.22%, to 13,984.43 at the opening bell.
Source: reuters.com/business
Other news is, S&P 500 futures were up 0.1%, Nasdaq 100 futures were 0.09% higher, and Dow Jones futures rose 0.14% in European trading. On Monday, the benchmark S&P 500 index finished 0.4% lower after a choppy day of trading.
The main event this week for investors is the release of January US CPI inflation data on Thursday. It's expected to show inflation hit 7.3% year-on-year last month, a new 39-year high, according to analysts polled by Bloomberg.
A stronger reading could cause the
Federal Reserve to raise interest rates faster, with the market currently expecting five hikes of 25 basis points each this year.
The yield on the key 10-year US Treasury note rose as high as 1.96% Tuesday, its highest level since 2019, as investors braced for the Fed to move. It was last up roughly 2 basis points to 1.932%, after paring some of its gains.
What's driving markets
Rising bond yields have been the story of 2022 so far, and now the talk is how quickly the U.S. Treasury10-year yield may reach 2%, after trading around 1.93% Tuesday morning.
Peter Garnry, head of equity strategy at Saxo Bank, says the pressure will continue for U.S. technology stocks. "The VIX remains above 22 and financial conditions are continuing to tighten with credit spreads moving higher so this should be key to monitor for equity investors," he said. The VIX, or the Cboe Volatility Index, is a measure of expected volatility, its long-term average is just below 20.
Strategists at UBS say they are sticking to their earnings forecasts for the year, and their S&P 500 price target of 5,100 by the end of the year.
Elsewhere, Pfizer projects it will generate record-high revenue in 2022, saying Tuesday it expects to sell $32 billion of its Covid-19 shots and $22 billion of its antiviral coronavirus treatment pill Paxlovid this year.
However, the company posted mixed fourth-quarter results, beating on earnings but missing on revenue. Pfizer's stock was down more than 3% in premarket trading.
Here's how the company performed compared to what Wall Street expected, based on analysts' average estimates compiled by Refinitiv:
*. Adjusted EPS: $1.08 vs. 87 cents expected
*. Revenue: $23.84 billion vs. $24.12 billion expected
Pfizer's miss on revenue was driven by lackluster sales in its internal medicine and hospital segments. Fourth-quarter internal medicine sales fell 3% year-over-year to $2.24 billion, while hospital sales were largely flat at $1.88 billion. Pfizer's oncology sales expanded 7% to $3.24 billion compared with the year-earlier period.
Source: www.cnbc.com
On the other hand, Asian markets closed today's trading up across the board except for Hong Kong's Hang Seng which closed down 1.02%. South Korea's KOSPI gained 0.05%, Japan's Nikkei rose 0.13% while India's Sensex and Taiwan's TAIEX advanced 0.33% and 0.37%, respectively and China's Shanghai Composite closed the day up 0.67%. By mid-day trading, European equity indices are mixed and U.S. futures point to a soft market open later this morning.
Even though we are in the midst of yet another earnings deluge today and tomorrow, equities are once again in a wait and see mode ahead of Thursday's January Consumer Price Index report and the continued geopolitical tension surrounding Ukraine. President Biden said the Russian-built Nord Stream 2 natural-gas pipeline to Germany would be suspended if Russia invades Ukraine, while German chancellor Olaf Scholz offered support for Ukraine. Meanwhile, after meeting with President Vladimir Putin, President Emmanuel Macron of France shared that Putin gave his assurances he is open to exploring ways to defuse the Ukraine crisis.
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