US MARKET / Wall Street are recovering from daily minimum | News

NEW YORK (Dow Jones) – US equities recovered from sharp losses during Thursday’s session after fresh inflation data at the start of trading. Occasional buyers could take their chance to enter at low levels. However, inflation, at its highest in 40 years, still keeps investors firmly in hand. The day before, voices tried to explain the resumption of inflation with the extreme increase in gasoline prices in June, which have fallen sharply since then. But this mitigation effort is unlikely to deter the US Federal Reserve from taking bold countermeasures. Fear of interest rates and related fears of recession pushed the Dow Jones index 1.0 percent to 30,452 points around noon (New York City time), the S&P 500 and Nasdaq Composite fell 0.9 and 0.8 percent.

From the point of view of equity investors, there is a risk of further strong tightening of monetary policy in order to limit the much too strong depreciation of the currency. Retailers are now pricing in another 100 basis point hike with a 75 percent probability. With producer prices higher than expected but lower in the base rate, there was only a slight loosening ahead of the market. However, weekly labor market data turned out to be slightly weaker than expected. Neither of these dates seems to ease investors’ concerns about the Fed’s actions over the long term.

The big banks are disappointing

The beginning of the US reporting season is also being considered. For the broader market, market watchers are expecting a 4.3 percent increase in earnings in the second quarter, and therefore the smallest increase in the S&P 500 index since the fourth period of 2020.

Quarterly reports by JP Morgan and Morgan Stanley are disappointing. “In the absence of macroeconomic change, we do not expect the results to change investors’ cautious stance on the banking sector,” said Bank of America strategists. Billions of dollars in NPL reserves contributed to the sharp decline in JP Morgan’s profits in the second quarter. Both profits and revenues fell short of analysts’ expectations. Shares are down 4.5 percent.

The Morgan Stanley price is slightly better (-1.3%). Weak investment banking and higher costs drove the US bank’s profits down in the second quarter. Profits and revenues were below market forecasts.

United Insurance by as much as 6.2 percent. Management wants to explore options such as selling the company, merging or divesting subsidiaries – as alternatives to raising fresh capital. Azenta buckle 13% The measurement and automation expert lowered the forecast for the third quarter and now expects a greater loss than expected. Ocean Power Technologies showed minus 6.5 percent. An alternative power producer saw sales increase but is still in the red.

Gold offended despite high inflation

Signals in the bond market continue to rise rate hike, yields are rising, but are rebounding from daily highs. The ten-year return drops below 3.00 percent again. Observers suspect a shift from European to US bonds is behind this. Nevertheless, the yield curve remains markedly inverted, sending a signal of recession. The dollar rushes to another 20-year high, carried by rising market interest rates and interest rate hikes, the dollar index gains another 0.5 percent. The euro has fallen well below the dollar parity at times, but is now recovering from losses.

On the other hand, the price of gold remains under pressure. The price of the troy ounce has fallen to its lowest levels since August 2021. It is under pressure from rising expectations of interest rate hikes and a stubbornly strong dollar.

Dollar strength and fears of recession are dragging oil prices down further from the $ 100 line. Spartan Capital analyst Peter Cardillo estimates that US light oil, type WTI, will reach $ 90 a barrel in the short term if current resistance does not persist.

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INDEX last + / -% absolute + / -% YTD

DJIA 30 451.58 -1.0% -321.21 -16.2%

S&P 500 3 765.69 -0.9% -36.09 -21.0%

Nasdaq Comp. 11 163.21 -0.8% -84.37 -28.7%

Nasdaq-100 11 665.10 -0.5% -63.43 -28.5%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.12 -2.5 3.15 239.4

5 years 3.08 +4.2 3.03 181.5

7 years 3.06 +4.0 3.02 161.9

10 years 2.97 +3.3 2.93 145.8

30 years old 3.12 +0.4 3.12 122.3

FOREX last +/-% Thu 8:02 Wed 17:32% YTD

EUR / USD 1.0028 -0.3% 1.0023 1.0093 -11.8%

EUR / JPY 139.34 + 0.8% 138.71 138.59 + 6.5%

EUR / CHF 0.9860 + 0.1% 0.9845 0.9866 -5.0%

EUR / GBP 0.8484 + 0.3% 0.8456 0.8463 + 1.0%

USD / JPY 138.97 + 1.1% 138.43 137.32 + 20.7%

GBP / USD 1.1819 -0.6% 1.1859 1.1924 -12.7%

USD / CNH (offshore) 6.7594 + 0.5% 6.7375 6.7189 + 6.4%

Bitcoin

BTC / USD 20 393.15 + 2.5% 20 167.59 19 482.77 -55.9%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 94.24 96.30 -2.1% -2.06 + 30.6%

Brent / ICE 97.89 99.57 -1.7% -1.68 + 30.7%

GAS VT close +/- EUR

Dutch TTF 174.25 180.50 -3.5% -6.26 + 33.6%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,710.35 1,735.53 -1.5% -25.18 -6.5%

Silver (Spot) 18.39 19.22 -4.3% -0.84 -21.1%

Platinum (Spot) 849.35 858.50 -1.1% -9.15 -12.5%

Future Miedź 3.22 3.33 -3.2% -0.11 -27.5%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln / brb

(END) Dow Jones Newswires

July 14, 2022 12:15 PM ET (4:15 PM GMT)

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