Shares rose on Tuesday, with a busy day of corporate earrings ahead. Investors looked to put a volatile January behind them, although the prospect of higher interest rates still loomed large.
future for the
Dow Jones Industrial Average
indicated an open lower than 30 points or 0.1% higher, after the index rallied 406 points on Monday to close at 35,131.
futures signaled a 0.1% start in the green with the
on track to open 0.2%. The S&P 500 and Nasdaq jumped 1.9% and 3.4% on Monday, respectively.
was up 0.9%. Many stock exchanges in Asia were closed for the Lunar New Year holiday, but trading continued in Tokyo, where the
increased by 0.3%.
US stocks posted an impressive performance on Monday to end the month, but that belies a tough January: stocks had their worst month since March 2020 and the early days of the Covid-19 pandemic. The Dow Jones, S&P 500 and Nasdaq fell about 3%, 5% and 9% respectively in January, the worst first month of a calendar year for the S&P 500 since 2009.
Deep losses and intensely volatile trading last month came as investors cast aside the prospect of higher interest rates and tighter monetary policy from the Federal Reserve. The central bank is expected to raise interest rates several times this year to combat high inflation; rate hikes could dampen economic growth.
“There remains a lot of uncertainty about the trajectory of monetary tightening after last week’s Fed rate meeting, with relentless speculation about how many possible rate hikes we could see this year,” Michael Hewson said. , analyst at the broker CMC. Markets. “Consensus now appears to be between four and five, although some forecasts have hit seven, as we get the equivalent of a rate hike bingo to see who can outperform on the forecast.”
The yield on the 2-year US Treasury note, which attempts to forecast the level of short-term interest rates for the next two years, touched 1.21% on Monday. That topped the 1.19% close seen earlier this month, which was the highest since the pandemic began. The yield on this bond was 1.18% on Tuesday.
“Investors have continued to increase the likelihood of many rate hikes this year,” said Jim Reid, strategist at
“In fact, we achieved a number of new milestones yesterday, the most significant of which was that fed funds futures were priced 5 full rises this year for the first time at some point in trading, although at the close they were back a bit at 4.94 rides.
With stocks rising from February, investors have a flurry of corporate earnings and economic data in the day ahead.
More than 110 constituents of the S&P 500 are releasing their quarterly results this week, with some big names on Tuesday.
United Parcel Service
(BABA) are ready to show up before the opening bell, with
(PYPL), among others, coming after the close.
On the economic side, global manufacturing purchasing managers’ indices for January will be released, alongside, in the US, January’s ISM manufacturing index and last month’s JOLTS job openings report. .
In commodities, oil prices held at seven-year highs, with U.S. West Texas Intermediate crude futures up 0.1% to well above $88 per month. barrel.
Wednesday will see the final monthly production meeting of the OPEC+ group of domestic oil producers, which includes Russia and Saudi Arabia. Geopolitical tensions with Russia over its military presence on the Ukrainian border have also recently increased pressure on oil markets.
was up on Tuesday, up nearly 4% in the past 24 hours to top $38,500, according to data from CoinDesk. The major cryptocurrency hasn’t broken above $39,000 – seen as a crucial level by digital asset traders – since falling below $40,000 less than two weeks ago.
“Bitcoin’s bullish momentum is slowly building and it could surprise on the upside if the dollar continues to weaken as much of the Fed’s tightening for the year begins to be priced in,” said Edward Moya. , analyst at the broker Oanda. “Bitcoin’s most likely scenario is to continue consolidating here, but if risk appetite remains firm in February, plenty of margin money is ready to pounce.”
Here are two stocks in motion on Tuesday:
(NXPI) rose 0.5% in premarket trading in the United States. The Dutch chipmaker released quarterly results on Monday evening, showing revenue of $3.04 billion, slightly above analysts’ expectations, but earnings of $2.24 per share below EPS of 3, 04 dollars expected by Wall Street.
(UBS) jumped more than 5% in premarket trading after the Swiss bank reported a weaker-than-expected 18% drop in quarterly earnings. Full-year net income of $7.5 billion beat analysts’ expectations of $6.9 billion.
Write to Jack Denton at [email protected]