5 Keys to Wall Street By


By Geoffrey Smith – The data will provide a further indication of the extent to which the market has to worry about rising interest rates and the strength of the economy.

Bank reports kick off fourth-quarter earnings season, and diplomatic talks aimed at stopping a new Russian invasion of Ukraine have stalled without any progress.

Europe’s energy prices rise again in response.

Here are the top five things to watch for this Friday, January 14, in the financial markets.

1. Earnings season kicks off with a bang

US earnings season kicks off in earnest with fourth quarter reports from JPMorgan (NYSE:), Wells Fargo (NYSE:) and Citi Group (NYSE:).

Results from JPM and Citi, in particular, are likely to be aided by continued strength in trading and capital markets towards the end of the year, with the economic recovery also helping to enable further reserve releases from prior quarters. . JPMorgan Chief Executive Jamie Dimon told clients earlier this week that he expects another year of strong economic growth in 2022, which will likely be reflected in the bank’s projections.

The only hurdle could be that Wall Street has already had a very strong start to the year, as rising long-term interest rates bolster prospects for future credit spreads. Wells Fargo shares are already up 17% so far this year, while Citigroup is up 12% and JPM more than 6%.

2. Retail sales data, China’s trade flows start to cool

US retail sales figures are due for release at 2:30 PM ET, and are expected to be down 0.1% on a seasonally adjusted basis for the month, marking a modest end to the year.

Core retail sales are expected to have risen 0.2%, marking the fifth consecutive monthly rise, despite signs that consumers have exhausted the savings they accumulated last year. Experian’s results, released Thursday, spoke of a sharp rise in consumer credit applications.

On the other hand, there have been signs that China’s huge boom in merchandise trade cooled at the end of the year. Export growth slowed to 20.9% for the year as a whole, while import growth fell from more than 30% to less than 20%. Still, the country’s trade surplus — $676 billion last year — hit a new record and is a powerful illustration of the huge consumer demand created by government stimulus in the West.

3. Stocks set to open slightly higher after rate jitters hit tech

US stocks are set to open slightly higher, stabilizing after Thursday’s sell-off on renewed fears over a year of interest rate hikes.

Federal Reserve Governor Chris Waller told Bloomberg that three rate hikes by 2022 “is a good baseline,” a comment that implies the risk that more may be needed. In addition, private sector economists have raised the possibility that the Fed will end its bond purchases immediately when it meets later this month.

By 12:20 PM ET, the {{8873|Jones’ futures}} was up 106 points, or 0.3%, while shares were up 0.2% and shares were flat. The technology sector also underperformed sharply on Thursday, down 2.5%.

The benchmark 10-year US Treasury bond yield rises 3 basis points to 1.75%.

4. US-Russian talks on Ukraine fail; the ruble falls, the price of gas in Europe soars

Wholesale energy prices in Europe are soaring again due to a combination of factors, increasing the likelihood of economic disruption in the coming months.

US-Russian talks on Ukraine have broken off with no progress, followed by a widespread cyberattack on Ukrainian government websites. He and Russian stocks have sold off on fears that a new Russian incursion would be met with new sanctions from the United States and Europe.

At the same time, electricity futures have risen again after Electricite de France lowered its output forecast due to more unplanned reactor shutdowns. EDF (PA:) shares fell 23% on the news following a government decree requiring it to sell more power at a deep discount to market prices to ease the pain caused to consumers.

5. Oil Rises Again on China Trade Data and Russia Tensions; US rig count data

Oil prices hit a new two-month high on the back of China’s trade data, amid lingering concerns about the global oil sector’s ability to produce the oil a recovering world will need this year.

By 12:30 PM ET, futures were up 1.1% at $83.00 a barrel, while Brent crude was up 1.2% at $85.44 a barrel.

Baker Hughes active drilling rig count and CFTC positioning data completes the week later.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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