New falls today at the opening of Wall Street, after the surprising ups and downs of the US stock market yesterday, Thursday, which increases uncertainty in the equity markets, with money seeking refuge in debt. The bond purchases they are returning the US ten-year bond yield below 1.8%, after climbing in recent weeks, and currently stands at 1.756%.
Yesterday, Thursday, the main indices of the US stock market fell again in a session in which the DOW JONES fell 0.89% to 34,715.39 points in what was its fifth consecutive session down, the S&P 500 registered a decrease of 1.10% and stood at 4,482.73 units and the Nasdaq 100 fell 1.34% at 14,846.46 integers.
US stocks thus suffered a new bump, affected by persistent concerns about the Federal Reserve tightening and weaker-than-expected economic and corporate earnings data.
Among the stocks listed on Wall Street, the best performers yesterday were JD.com (6.50%), Baidu (4.89%) and Morgan Stanley (4.28%). On the other hand, among the biggest falls on the stock market of the day were those of Peloton Intera (-23.93%), Garmin (-6.05%) and Micron Technology (-5.48%).
This Friday, Wall Street does not look better at its opening than yesterday at its close. The Dow Jones fell 0.13% to 34,668.92 points, the S&P500 lost 0.38% to 4,465.55 and the Nasdaq Composite fell 0.75% to 14,054.45.
Note that today the Nasdaq has touched a 10% correction for the first time in 220 sessions.
Within the Dow Jones, the values that rise the most are Travelers (3.19%), Nike (0.87%) and International Business Machines Corp. (0.74%), while those that fell the most were Walt Disney (-4.63%), Boeing Co (-1.36%) and Goldman Sachs (-1.35%).
The hope of earnings season was that companies would calm their nerves. That we were going to have a reminder of the strength of the economy and the resilience that we have seen in the last two years. On the other hand, the results have not been very encouraging and are not giving the game change that they expected.
At today’s open, Netflix shares They plummet close to 21.30% and trade at $400 after yesterday the streaming platform reported a slowdown in the rate of new registered users, with 18 million in 2021 compared to 37 million in 2020. Despite having doubled its annual profits, with a net result of 5,116 million dollars, the slowdown in subscriptions has weighed more on investor sentiment.
Nails 200 Chinese companies could be delisted from US exchanges as regulators cannot verify their audits, according to The Wall Street Journal published yesterday. On the other hand, the US Securities and Exchange Commission yesterday rejected a filing by the Intercontinental Exchange’s NYSE Arca to list and trade shares of First Trust SkyBridge Bitcoin ETF Trust.
politics and macro
The big ones US banks rely on consumer spending patterns, noting that healthy consumers who have cash in the bank are once again eager to spend and also to borrow. Consumer spending, a key driver of the US economy, fell sharply during the start of the pandemic as Americans, fearing the worst, hoarded cash and saved money by staying home. At the same time, government aid filled the bank accounts of many Americans, and many used the cash to pay down debt. Now JPMorgan Chase and Bank of America say consumers are in good shape, even if the omicron variant dampened consumer enthusiasm late last year. Some analysts also warned that inflation has the potential to further reduce spending if it continues.
the escalation of tension in Ukraine weighs in the US. Yesterday US President Joe Biden noted: “I have been clear with Vladimir Putin that if any Russian military forces cross into Ukraine, it will be considered an invasion. We have a variety of tools at our disposal to respond to Russia. Russia will pay a high price if Putin launches an invasion of Ukraine.” For his part, US Secretary of State Antony Blinken stated that “if Russia goes ahead, it will suffer a high cost.” US Secretary of State Antony Blinken and German Chancellor Olaf Scholz commented that if the problem with Russia escalates, they will be prepared to respond with consequences. They also discussed the challenges posed by China.
White House press secretary Jen Psaki said that US President Joe Biden and Japanese Prime Minister Fumio Kishida will soon discuss a variety of China-related issues.
Democratic US Senator Joe Manchin has indicated that he is open to re-engaging in negotiations on the BBB economic plan (Build Back Better). For her part, the spokeswoman for Parliament, Nancy Pelosi, admitted that said plan could require a reduction in size and be renamed in order to be approved.
The US Senate Judiciary Committee has approved a bill that prohibits large technology platforms favor their own businesses.
Bad data from yesterday US weekly jobless claims., which rose to 286,000 compared to the previous 230,000 and compared to the 225,000 expected.
Weak data also that of the resale home sales in the usa. in December: 6.18 M vs. 6.44 M expected and vs. 6.48 M previously. Resale Home Sales (MoM) (Dec): -4.6% vs. 2.2% previously.
The Petroleum has seen a remarkable rally in recent weeks, fueled by very bullish fundamentals, as disrupted supply has struggled to keep pace with strong demand. OPEC and IEA have referenced demand resilience since omicron’s appearance in recent weeks and OPEC+’s inability to meet, or even come close to, its production targets has led to the kind of price action in one direction. While the fundamentals have not changed, it looks like we are finally starting to see the momentum taper off after a more than 30% rally from the omicron lows. This is occurring around $90, where oil has hit a seven-year high, which appears to trigger profit-taking, OANDA analysts explain. This Friday, Brent futures fell 0.71% to $87.75 and WTI futures fell 0.57% to $85.06.
China has downloaded nearly four million barrels of iranian crude in state reserve tanks in the southern port city of Zhanjiang in recent weeks, a trade source and ship-tracking specialist Vortexa Analytics said on Thursday. The move comes as world powers are locked in tough negotiations with Iran to resurrect a 2015 nuclear deal that will include lifting US sanctions on Iranian oil. The Trump administration withdrew from the deal and reimposed sanctions.
The oro down slightly, but found support around $1,830, where it experienced significant resistance in recent weeks. The breakout of this level was important for the yellow metal and could push it higher in the coming weeks. However, this requires it to sustain above $1,830 as the confirmation of the breakout will be a huge confidence boost for gold bulls.
In the cryptocurrency market, there were sharp falls for Bitcoin, which lost the level of 40,000 dollars and is currently trading at 38,501.9 dollars, with decreases of 10.43%. According to the expert Michael van de Poppe, founder and CEO of Eight Global, on his Twitter account, investors would be waiting for a drop to $30,000 to enter Bitcoin.
The Federal Reserve Board has published a document in which it examines the pros and cons of a possible US central bank digital currency, noting that its purpose is not to make immediate decisions on whether to issue a digital currency in the US. The Fed stated that cash will continue to be available, and that any central bank digital certificate (CBD) would not be intended to replace it.
In the United States, the day’s attention will focus on the speech by Janet Yellen (US Treasury Secretary).
Additionally, in the US non-commercial COT net positions for gold, oil, the S&P 500 and major currencies will be released.