Ongoing reporting from the world’s leading markets: important updates, prominent stocks, bonds and analyst updates
22:00 – Volatility on Wall Street continues tonight after the Fed announced an imminent rate hike. The sharp rises recorded earlier have been erased, and now the Nasdaq, which has already risen more than 3%, adds 0.9% to its value, the Dow Jones is stable and the S&P 500 strengthens by 0.4%.
NASDAQ is up 2.2%, S&P 500 is up 1.3% and Dow Jones is up 0.7%.
The US Federal Reserve left the interest rate at 0% -0.25%, in line with expectations, and announced an imminent rate hike, after more than two years of zero interest rates.
In a somewhat surprising move, members of the Fed’s open market committee announced that an interest rate hike of 0.25% is expected to occur soon. This will be the first interest rate hike since December 2018.
The statement issued at the conclusion of a meeting of Fed executives did not specify a specific date for raising the interest rate, but the market estimates that the increase will take place in March. The Fed’s interest rate decision is not expected in February, so the next decision will be made in March.
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Fed Chairman Jerome Powell
(Photo: AFP)
20:10 – European stock markets closed sharply higher – the Dax index in Frankfurt strengthened by 2.2%, the CAC in Paris added 2.1% and the Pottery in London climbed by 1.3%.
18:10 – Oil prices are climbing to a seven-and-a-half-year high, despite a surprising rise in U.S. inventories, with tensions between Russia and Ukraine overshadowing uncertainties about future supplies.
WTI crude is up 2.3% at $ 87.6 a barrel, Brent crude is up 2.2% and trading at $ 90.2 a barrel – a record since 2014.
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A tank of the Russian army in Belarus
(Photo: Reuters)
16:30 – Trading on Wall Street opened in a positive trend, after volatile days with sharp declines and ahead of the Federal Reserve announcement tonight.
The NASDAQ index leads the gains and climbs 2.1%, the Dow Jones is up 1.2% and the Dow Jones is up 0.8%.
After the reports – Microsoft jumps 4.9%, AT&T rises 0.7%, Boeing loses 1.6%.
Ahead of tonight’s reports, Tesla adds 3.1%.
15:50 – Boeing climbed 2.4% pre-trade despite missing analysts’ forecasts for the fourth quarter of 2021.
The American aircraft maker ended the quarter with a loss of $ 7.69 per share – a much worse result than analysts’ forecasts, which expected Boeing to lose 42 cents per share.
Revenue for the quarter was $ 14.79 billion, below market expectations for revenue of $ 16.66 billion.
However, Boeing posted a positive cash flow in the quarter, for the first time since the first quarter of 2019.
14:15 – General Dynamics Results: The company posted fourth-quarter earnings of $ 3.39 per share and revenue of $ 10.29 billion – analysts expected earnings of $ 3.37 per share and revenue of $ 10.67 billion. The stock has no significant pre-movement.
14:00 – The expected is the unexpected: After the strong volatility of recent days and the sharp declines in the technology sector yesterday, contracts for Nasdaq are up 2%, contracts for S&P 500 are up 1.5% and Dow Jones are up 1%; The US has been stable for 10 years, at 1.79%.
That tonight at 21:00 (Israel time) an updated interest rate announcement from the Fed is waiting for us. The key question is whether Chairman Jerome Powell came out with some kind of statement of intent to bring forward interest rate hikes, given the continued rise in inflation (standing at 7% in December).
Microsoft climbs 3.8% pre-reports, Apple up 2%, Amazon 2.7%
13:40 – Shares of AT&T rose 1.4% pre-quarter: The American media and media giant posted adjusted earnings of 78 cents per share in the fourth quarter – 2 cents above analysts’ expectations.
Revenue was $ 41 billion, compared to $ 45.7 billion in the same quarter last year – the market expected $ 40.3 billion.
The company’s forecast for 2022 stands at adjusted earnings of $ 3.15-3.10 per share and growth in individual percentages. Analysts expect adjusted earnings of $ 3.16 per share and 2% growth in revenue to $ 156.3 billion.
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13:30 – Towards the publication of the reports tonight after closing: Tesla climbs 4.4% pre-closing, after three days of declines and a total decline of 7.8% during them.
12:40 – Texas Instruments climbs 4% pre-report: The chip company posted net income of $ 12.4 billion or $ 2.27 per share in the fourth quarter, along with 19% revenue growth to $ 4.83 billion – analysts expected earnings of only $ 1.95 per share, and revenue Of $ 4.43 billion.
The company’s forecast for the current quarter (Sunday 2022) was also higher than market expectations: the company expects to post quarterly earnings of $ 2.29-2.01 per share and earnings of $ 4.9-4.5 billion – analysts expect earnings of $ 1.87 per share and earnings of $ 4.37 billion.
12:20 – Senior analyst Ipek Ozkardeskaya of Swissquote: “Trading in the US stock market continues to be tumultuous, unpredictable, and full of surprises. Continuous interest, instead of raising one every quarter.
Another worrying possibility is that the Fed could announce a 50 basis point increase in interest rates in March instead of 25 points – or it would announce an interest rate increase today. Yet these hawkish estimates are quite exaggerated.
The Fed cannot produce a financial crisis to fix the problem of inflation. There’s a greater chance we’ll see a confident self today, but still reassuring. The hawkish current in the Fed needs to calm down – scaring the markets today will not contribute to tackling inflation. ”
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The Fed headquarters in Washington
12:00 – A strong day also in energy: of rising by 3.7% and BO rising by 3.1% in London, Total climbs by 2.2%; In commodities: Anglo American is up 3.6%, Rio Tinto is up 3.1%, Glencore is up 4.1%.
11:15 – Closing in Asia: Nikkei was down 0.4%, Hang Seng was up 0.2%, Shanghai was up 0.7%, Kusfi was down 0.4%.
10:40 – Green opening in Europe: The Dax is up 1.8%, Kak is up 1.7%, Potsey is up 1.5%; In banks: Deutsche Bank is up 2.7%, Barclays and Credit Suisse are up 3%, HSBC is up 2.2%.
Sharp increases in aviation as well: Lufthansa is up 55%, Air France is up 3.7%, IAG is up 5.3%, EasyJet is up 3.8% – aircraft maker Airbors is up 4%.
Shares of Fresnillo mines down 12% in London – the company reported that the epidemic and labor law reform in Mexico have severely damaged the workforce, in a way that has hurt activity.
In New York, NASDAQ contracts are up 1%, S&P 500 contracts are up 0.8% and Dow Jones is up 0.7%.
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(Photo: Wikimedia)
10:10 – Investment expert Muhammad al-Arian: “It is very difficult, if not impossible, to justify the continued flow of money from the Fed to the market through asset purchases. The bank’s heads should announce an immediate cessation of acquisitions.”
According to Diane Swonk, Grant Thornton’s chief economist, inflation should dictate the continued tightening of the Fed’s policy – even in the face of a declining market. “We have inflation to deal with, and even with what we see in the markets, the financial conditions are too loose.”
Barry Knapp, head of research at Macroeconomics, said ahead of the decision that “the declines in the markets were not a surprise and they reflected the Fed’s narrowing move. I do not think chairman Jerome Powell can say anything that will make the situation worse More. The market is on track to stabilize because its growth forecast is not hurt.
“The number one contribution to inflation in 2022 will be from the housing market. Consumer product prices have fallen, supply chain pressures will be released. But this rise in house and rental prices is likely to continue to rise. The Fed’s main channel for slowing inflation is through the housing market.”
9:50 – Energy company Tullow has announced that it expects production levels in 2022 to be in the range of 55 to 61,000 barrels per day – a figure that will yield it a cash flow profit of $ 100 million, at a price assumption of $ 75 per barrel. In 2021, cash flow is expected to be around $ 250 million.
Mexican metal mining company Fresnillo (traded in London) reported that it expects to produce between 600 and 650,000 gold ounces and between 50.5 and 56.5 million ounces of silver during 2022. In 2021, the company produced 751,203 ounces of gold and 53.1 million ounces of silver. Presenillo noted that the epidemic and the reform of labor laws in Mexico have led to many absences of workers, shortage and large turnover of workers, in a way that is detrimental to activity.
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(Photo: Shatterstock (Oleksiy Mark))
9:20 – Business management software company Sage Group recorded a 5% growth in revenue in the first fiscal quarter to £ 458 million – US sales rose 11% and Northern Europe saw a 7% increase.
7:00 – Light movements in Asian markets, following a very volatile trade in New York that ended in declines – especially in the technology sector – and with investors waiting for the Fed’s interest rate decision tonight in Washington. The US bank is headed by Jerome Powell but it can certainly announce that it intends to make a first interest rate hike as early as March, immediately upon completion of its acquisition plan.
The Nasdaq was down 2.3% yesterday, the Dow Jones was down 0.2% and the S&P 500 was down 1.2%. Softbank is up 3.7% in Tokyo, where Nintendo is up 3.9%; Mitsubishi Financials and Sumitomo are up 1.5%; Cathay Pacific is down 1.7% in Hong Kong.
Contracts for Dow Jones are up 0.2% at this early stage, contracts for the S&P 500 are up 0.3% and for Nasdaq are up 0.6%; 10-year US bond yields are falling by one basis point to -1.77%.
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Masyoshi Sun Founder and Chairman of Softbank
(Photo: Yoshio Tsunoda)