Wall Street damage limit thanks to Ultimate Enemy

(ABM FN-Dow Jones) On Monday, US stock exchanges largely wiped out the sharp losses they incurred earlier in the day. At a close of 4,670.29 points, the S&P 500 eventually fell 0.1 percent. The Dow Jones index lost 0.5 percent at 36,068.87 points, and the Nasdaq index gained 0.1 percent at 14,942.83 points.

Sentiment is uncertain as the Fed appears to be tightening the reins of policy faster than expected. This was clarified last week from the minutes of the last central bank policy meeting. Meanwhile, the US 10-year yield rose to around 1.80%. At the end of 2021, that was still 1.50 percent.

Economists at Goldman Sachs now expect four price increases in 2022, instead of three, and they also expect a normalization of the balance sheet soon. Instead of the end of this year, Goldman Sachs thinks the Fed may stop reinvesting in bond redemptions as early as the summer.

Goldman Sachs said that underutilizing the labor market makes Fed officials more sensitive to upward inflation risks and less sensitive to downside growth risks.

According to market analyst Naim Aslam of AvaTrade, US inflation data due later this week is particularly important to the markets and can cause volatility.

“Investors are looking for indications of whether inflation is still at a point where the Federal Reserve can intervene through monetary policy or the Fed is lagging behind to address rising consumer prices,” Aslam said, also referring to the nomination session, also referring to the nomination session. . Jerome Powell presented to the US Senate on Tuesday and Federal Reserve Vice Chair Lyle Brainard on Thursday.

US inflation, to be released on Wednesday, is expected to rise from 6.8 percent in November to 7.1 percent in December.

This weekend, quarterly numbers season kicks off with top US financial officials JPMorgan Chase, Citigroup, Wells Fargo and BlackRock. Many investors put money into bank stocks because they expect to benefit from higher interest rates.

But for the broader market, and tech stocks in particular, the outlook is less attractive. “The stocks are going down and so are the bonds,” said Hani Reda of Pine Bridge. “At the moment, even cash is better than owning a risky investment.”

Oil prices fell on Monday. At a settlement of $78.23, a barrel of West Texas Intermediate is 0.9 percent cheaper. Investors weighed concerns about Omicron against production disruptions in Kazakhstan and Libya.

The EUR/USD traded near the close at 1.1329. The Russian ruble rose amid talks between the United States and Russia regarding the reinforcement of Russian forces along the border with Ukraine. ING sees little chance of a breakthrough to ease tensions as NATO will find it difficult to meet Russia’s demand to refuse accession requests from Ukraine.

company news

PC sales are set to drop significantly this year, after amazing growth. This makes this market an even more important battleground for competitors Intel and AMD. Since 2018, AMD has been one step ahead of Intel chips, as it has processors made at TSMC in Taiwan. In the third quarter of 2021, AMD acquired a 21 percent market share in mainframe processors. Four years ago that was just 8 percent. AMD closed flat after a loss earlier in the day, while Intel finished more than 3 percent.

The race for the electric car market is getting busier. Both Ford and General Motors are coming up with new electric pickup trucks. A large number of new electric models will be introduced to the global car market in the coming years. Ford and General Motors lost about 2 percent on Monday.

Goldman Sachs remains positive about Tesla and raised its price target from $1,125 to $1,200 on an unchanged buy rating. Analyst Mark Delaney lists the electric car maker as one of his top picks for 2022 and is also positive about industry trends. Tesla shares rose 3 percent after a lower open. Competitor Nikola lost more than 6 percent.

Moderna sold 807 million vaccines against Corona last year, generating revenue of $17.5 billion. Contracts worth $18.5 billion for 2022 and options worth $3.5 billion have already been signed on top of that. The stock closed more than 9 percent higher on Monday.

Take-Two acquires Zynga for $12.7 billion. The purchase price of $9.86, paid for $3.50 in cash and the rest in stock, provides a 64 percent premium. Zynga shares are up about 40 percent while Take-Two is down more than 13 percent.

Pizza Hut puts Italian sausage on its Beyond Meats menu in Canada. The meat substitutes producer announced this on Monday. However, Beyond Meat stock fell more than 2.5 percent.

Pron: ABM Financial News

From Beursplein 5, Editors ABM Financial News Keep a close eye on developments on the stock exchanges, and the Amsterdam Stock Exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.