Live from Wall Street
Fears of the Federal Reserve overreacting to rate hikes have returned. There are no doves here, and Vice President Lael Brainard reiterates that “rates should remain high even if there are signs that inflation is starting to ease.” Meanwhile, Jim Breyer, one of Facebook’s early investors and who met CEO Mark Zuckerberg when he was 20, told CNBC that Meta is not cutting costs fast enough as the company expects to report its third straight quarterly revenue decline. For Breyer, the stock will remain under pressure over the next 12 months. The meta still closed up 2.3 percent. In contrast, Dow Jones and S&P500 indices fell by 0.8%.
18:30 Wall Street in red. Brainard (Fed): Rates should stay high
Further declines for Wall Street (-0.5% for Dow Jones, -0.5% for S&P and -0.8% for Nasdaq). Even if the markets had doubts about the size of the next hike (the Fed’s next meeting will be on January 31 and February 1), it was the vice chairman of the Federal Reserve who removed all doubts. Lael Brainard“Even if there are signs that inflation is starting to decrease, interest rates should remain high,” he emphasized once again.
“Even with the recent moderation, inflation remains high and monetary policy will have to be tight enough for some time to ensure that inflation returns to 2%,” Brainard said in a speech in Chicago. We are determined to stay the course,” Mr. Brainard said, a phrase common among other central bankers. Analysts have almost ruled out an imminent Fed hike of 25 basis points following comments from Jerome Powell’s deputy. The 10-year Treasury yield remains at 3.4%.
17:30 Nasdaq is up more than 1%. Markets await Mr. Brainard’s comments
The Nasdaq led the list with an average loss of 1.1%, while the S&P and Dow Jones lost 0.7% and 0.8%, respectively. Draw on it feeling Fears persist that the US central bank will continue to raise interest rates despite signs of slowing inflation. The markets are now waiting for the announcements of Deputy President Powell (19:15 Italian time). Lael Brainard.
Likewise, Old Continent bourses recorded further declines with the Ftse Mib closing down 1.8%, also pushed lower by comments from ECB President Christine Lagarde, who reaffirmed that Frankfurt would be unchanged. course in degrees.
16:30 Wall Street extends losses on fears of an aggressive Fed
Wall Street extends its losses in the opening hour (-0.6% Dow Jones, -0.7% S&P and -0.9% Nasdaq). The market’s focus is still on the Fed. According to the president of the Boston Fed, Susan CollinsAs a result, the US central bank will likely have to raise interest rates to just above 5% and keep them there for some time.
Session news also came from here Treasury Department The U.S. has announced that it is taking emergency measures to keep the federal government paying its debts as long as it meets the European Union’s goal. debt limit. In a letter to the Speaker of the House of Representatives, to the Secretary of the Treasury, Janet Yellen The Treasury said it will freeze new investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund from Thursday until June 5, 2023. However, he warned that both measures would be subject to “substantial uncertainty” if Congress did so. won’t accept the bill that would increase the debt ceiling by $31.4 trillion.
Funds will be replenished once debt ceiling will be increased or stopped, Ms. Yellen said…
15:45 Wall Street opens lower after jobless claims fall short of expectations.
Wall Street opened lower after recent macro data was interpreted by the market as a function of possible Federal Reserve action. In early trade, the Dow Jones lost 0.5%, while the S&P and Nasdaq lost 0.4%. Here are five things to know about the markets on January 19.
1. Unemployment benefits hit lowest level since September
The number of Americans who filed for unemployment benefits for the week ending January 14 continues January 14, 2012 It fell 15,000 to 190,000 from 205,000 the previous week, according to the Labor Department. Jobless claims typically serve as a vehicle for layoffs, which are relatively low after the pandemic has wiped out millions. works In the spring of 2020. Despite the efforts of the US central bank to cool and weaken the economy labor marketthe latter continues to demonstrate resilience.
2. Treasuries after macro data
Treasury yields rise as investors assess recent unemployment data. The benchmark 10-year Treasury yield rose 3 basis points to 3.41%. 2-year Treasuries settled at 4.12% after increasing by 4 basis points. After the declines of the past few days, the markets are now waiting for the speeches of other Fed policymakers, and especially the vice president, to figure out the way forward. Lael Brainard.
3. Dimon (JP Morgan): Fed rates above 5%.
Jp Morgan CEO, Jamie DimonThe European Commission believes that interest rates could reach 5% as core inflation remains stubbornly high. “I actually think rates will probably be above 5% because I think there’s a lot of underlying inflation and it’s not going to go away very quickly,” Dimon told Cnbc from the World Economic Forum in Davos, Switzerland. According to Dimo, the recent softening of inflation is due to temporary factors such as lower oil prices and a slowdown in China due to the Covid pandemic.
4. P&G down after accounts. Netflix Expected Results
The Procter & amp; Gamble is down 1.8 percent to open at $143. Net income fell to $3.93 billion from $4.22 billion in the same period last year. Sales decreased by 0.9% to 20.77 billion dollars. This is the first (annual) decline since the June 2017 quarter.
Investors await the results later netflix Wall Street (-0.6% to $297) is awaiting details after the close on the number of new subscribers and the latest experience with the ad-supported service. American Airlines and Truist Financial will also report results, while Alcoa will be in the spotlight after a heavy loss in the quarter.
5. Medvedev is worried about a possible nuclear crisis
Dmitry Medvedev’s comments, warning about the consequences of the financial crisis, also worried the markets. was bornRussia’s defeat in Ukraine could lead to nuclear war. Medvedev has repeatedly raised the threat of a nuclear apocalypse since Russia’s invasion of Ukraine began, but now Russia’s admission of defeat underscores the level of Moscow’s concern over increased Western arms supplies to Ukraine. ()