Monday, January 10, 2022
Interest is the subject of the hour
Wall Street is fighting its way back from the daily low
Alegers are eagerly awaiting US inflation data around the world. A seven is expected before the decimal point. That should put the central bank under pressure. The second issue on the floor is the approaching reporting season.
Wall Street saw a strong rebound from its daily lows at the start of the week, despite ongoing interest rate worries. The technology-heavy Nasdaq composite, which has recently been under particular pressure, even just made the leap into positive territory. Participants cited US bond market returns, which came back sharply from their daily highs. There were also some occasional purchases. The Nasdaq indices fell sharply because of the large number of growth stocks that are highly sensitive to interest rates.
the Dow Jones Index lost 0.4 percent to 36,069 points after being the day’s low at 35,640 points. For the broader one S&P 500 it went down 0.1 percent. the Nasdaq Composite gained, however, slightly to 14,943 positions, after a daily low of 14,530 points.
Goldman Sachs and Deutsche Bank are now assuming that the US Federal Reserve will not raise key interest rates three times this year, as previously expected, but four times, for the first time in March after the end of the securities purchases. The market predicts that the US Federal Reserve could raise interest rates in March and begin reducing its holdings of bonds and other assets shortly thereafter.
All eyes are now on the announcement of US consumer prices on Wednesday for December. Analysts expect this to have risen to more than seven percent – for the first time since 1982. This would further increase the pressure on the US Federal Reserve.
Kazakhstan and Libya are producing oil again
In addition, the upcoming reporting season is moving into focus. “The expectations are high,” said Thomas Altmann from QC Partners. Because without a further increase in profits, the high prices and high valuations on Wall Street can hardly be justified. Fourth quarter figures from JP Morgan Chase, Citigroup, Wells Fargo and Blackrock are expected over the course of the week.
The dollar rebounded from Friday’s levy. The dollar index gained 0.3 percent. Prices on the oil market showed taxes after production in Kazakhstan and Libya started up again. Libyan oil production has increased by 200,000 barrels per day, according to the country’s energy minister, after a key pipeline was restarted. And production in Kazakhstan has returned to normal levels after the heavy protests, it is said. The price of gold rose slightly and jumped over the mark of $ 1,800 a troy ounce. Traders pointed to the return on bond market returns.
Take-Two Interactive (minus 13.1 percent) takes over the video game company Zynga. The companies announced that they have agreed on a deal in which Zynga will be valued at around $ 12.7 billion. Zynga shareholders will receive $ 3.50 in cash per share and the equivalent of $ 6.36 in Take Two shares. This means that Zynga shares are valued at $ 9.86, a markup on Friday’s closing price of around 64 percent. Zynga’s titles jumped 40.7 percent.
The pharmaceutical company Pfizer has entered into a genetic research collaboration that can potentially cost billions. The group will be working with us over the next four years Beam Theraupeutics (minus 2.8 percent) in three research programs for rare diseases together, as the companies announced. Pfizer will initially pay Beam $ 300 million as part of the agreement. The biotech company can also expect milestone payments of up to $ 1.05 billion. Pfizer stock gained 0.9 percent.
Apria jumped 26.1 percent after the drug and medical technology wholesaler Owens & Minor (0.6 percent) announced the takeover of the company for around $ 1.45 billion. Owens & Minor pays $ 37.50 per Apria share, a surcharge of 26 percent on the closing price on January 7th.
For the Moderna share it went up 9.3 percent. The US biotech group has already secured product sales of around 18.5 billion dollars for this year. This also pulled the stocks of other vaccine makers higher. So won Biontech 8.7 percent and Novavax 6.5 percent.