Trading Review: Current Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
Gold records Tuesday of gains: A February delivery contract rose 1.1 percent, to $ 19.7, and closed at $ 1,818.5 an ounce.
After a negative opening and volatile trading later on the Nasdaq adds 1.1%, the Dow is stable and the S&P 600 is up 0.4%. After four days of declining Nasdaq yesterday, investors are returning to technology stocks. Amazon, Apple and Anvidia are up about 2%.
Federal Reserve Chairman Jerome Powell spoke at the Senate as part of his appointment process for another four-year term. Powell said he expects a return to supply chain normalcy this year to help ease inflationary pressures, but added that the Fed would not hesitate to raise interest rates more than expected if inflation remained High.
The European Bureau ended the trading day with gains. In Frankfurt, the DAX was up 1.1%, in London the Potsy 100 was up 0.6% and in Paris Cuck 40 it was up 0.9%. In Amsterdam, the AEX index rose 1.2% and in Madrid and Milan, the leading indices advanced by 0.6%. The pan-European Stokes 600 index rose 0.8%, accounting for some of the 1.8% drop yesterday. Technology stocks rose 1.9%.
Trading on the Nasdaq is volatile, with the index advancing 0.2%.
Chinese Internet stocks soar: JD.COM rises more than 9%, Pindudo more than 7%.
Other stocks that focus on interest: Modern, IBM and Seagate weaken between 3% and 4%, Boeing rises about 2%, Intel and Apple advance about 0.6%.
Among Israelis: Teva loses about 1.5%, Floristem is cut by 5%, and Fayette loses about 2%. On the plus side, ZIM is up 2%, Iron Source is up 3% and Foresight is up 6%.
Trading on the New York Stock Exchange opened in a negative trend: the Nasdaq, which recovered yesterday and broke a four-day decline, lost 0.3%. The Dow Jones industrial average fell by a similar rate and the S&P 500 weakened by 0.2%.
Federal Reserve Chairman Jerome Powell will appear today in a hearing before a Senate committee ahead of his appointment to another four-year term.
Illumina Jumps more than 6% to the top of the Nasdaq, after publishing a profit forecast for 2022 that exceeded analysts’ expectations and noted a strong demand for its genetic flooring treatments as well as a new partnership with four healthcare providers.
IBM Cut by 5% at the bottom of the Dow, following a downgrade by UBS from “Neutral” to “Sale”. The bank stated a risk to the operating results.
The 10-year US government bond yield weakens to 1.77%. The dollar is stable against the currency basket and strengthens by 0.3% against the Japanese yen to 115.6 yen per dollar. Halish and the euro are stable at $ 1.36 and $ 1.13, respectively. In the commodity arena Brent oil for March delivery is up 1.5% to $ 82 a barrel, WTI oil is up 1.7% to about $ 80 a barrel. Gold is up 0.2%. And traded around $ 1,803 an ounce.
Futures on the leading New York indices are trading up 0.3%. Among the stocks that focus pre-trade interest on Wall Street:
Illumina Rises 4% after publishing a profit forecast for 2022 that exceeded analysts’ expectations and noted a keen demand for its genetic flooring treatments as well as a new partnership with four healthcare providers.
Juniper Networks Jumps 5% after raising a two-tier recommendation from BofA Securities, from a “missing return” to a “buy”.
Intel Has appointed Micron Technology’s CFO David Zinsner as the company’s CFO and he will take office next week.
IBM 2% down following UBS ‘recommendation to drop from “neutral” to “sale”. The bank stated a risk to the operating results.
The network of bald houses CVS Strengthens 1% after raising its annual earnings forecast from $ 8.33 per share to $ 8.38 per share.
Rises continue in Europe and stock indices are climbing at rates of up to 1.4%. In trading in contracts on the Wall Street indices, there are slight increases.
In early trading, stocks are rising Tesla , Pfizer, Intel And Apple.
Rises in Europe are strengthening and stock indices are climbing at rates of up to 1.5%. In trading in contracts on the Wall Street indices, there are slight increases.
According to Ofer Klein, head of the economics and research division at Harel Insurance and Finance, inflation in the eurozone rose to 5% in December (4.9% in November) according to the initial estimate, the highest level since the bloc was formed. A sharp rise in energy prices (2% of the contribution) and food (0.4% of the contribution) account for about half of the increase. However, “we believe we will see a moderation starting next month when the VAT increase in Germany comes out of the annual calculation alongside the moderation in energy prices (which are still very high). Despite high inflation, we still believe that the central bank in the eurozone will not signal a rise in interest rates this year in light of the morbidity that has hit tourism on the continent, which has a heavier share of GDP compared to the US.
The day of trading on the European stock exchanges opened with a rise of 0.6% -1.1% in the leading stock indices. In the trading of contracts on the Wall Street indices, stability is recorded.
Ahead of the release of the US Consumer Price Index tomorrow, Deutsche Bank economists note that “the November CPI was the highest in 40 years and the hope that this was the peak may be early in light of the renewed rise in energy prices in December. The consensus among analysts stands at an annual increase of 7% compared to 2020. On Friday given retail sales will provide more information on how the recent jump in the number of infected in Corona has affected consumer behavior. Consumers have taken a hit in the last two years in light of the corona and this can be seen in the consumer sentiment of the University of Michigan. The index recorded its lowest level in the last ten years in November -67.4. In light of recent developments, the index is not expected to indicate renewed enthusiasm on the part of consumers. ”
The Nikkei index in Tokyo closed down 0.9%.
Asian stock markets are trading today in a mixed trend. The Nikkei in Tokyo retreated by 0.9% and the Hang Seng index climbed by 0.3%. In the trading of contracts on the Wall Street indices, stability is recorded.
In the commodity trading arena, a March contract for Brent crude rose slightly and traded around $ 81.3 a barrel. The yield on 10-year US government bonds stands at about 1.76%.
Last night, after sharp declines of more than 2% during the day, trading on Wall Street closed last night in a mixed trend. NASDAQ finished with a minimal increase, the S&P 500 was down 0.1% and the Dow Jones was down 0.4%.
Rafi Gozlan, the chief economist at IBI Investment House, notes in his weekly review that the markets’ negative reaction to the “hawkish” message from the Fed’s protocol published last week is understandable given past experience of reducing purchases and in particular reducing the balance sheet. The cessation of bond purchases at the end of 2014 and the reduction of the balance sheet and the increase in interest rates in 2017-2018 challenged the markets, even if not immediately, although they were carried out very gradually spread over several years. In 2015 the stock markets were characterized by volatility with a tendency for declines in parallel with pressure on commodity prices and a strengthening trend of the dollar. In 2017 the global economy enjoyed a synchronized improvement and expectations for an aggressive tax reduction by the Trump administration, factors that provided a boost to risk assets despite the restraining policy. “The dissipation of these factors, among other things due to the intensification of the trade war, led to a rapid deterioration in the markets at the end of 2018, a development that marked the end of the interest rate hike cycle.”
“Today, given that inflation is significantly higher than in the last cycle, and in the background the labor market is approaching full employment, the restraint is expected to be faster and to tighten financial conditions, strengthen the dollar and lower commodity prices (relatively fast transmission channel to lower inflation expectations).” Gozlan writes.
In the crypto arena, Bitcoin climbs by about 1.6% and trades around $ 42,160. This is after falling below $ 40,000 during trading yesterday. Atherium is up 2% and is trading at around $ 3,110.