4.00pm: US market closes higher
US markets ended higher on the final day of a volatile January.
The Dow Jones Industrial Average gained 1.1%, or 406 points, at 35,132, while the broader S&P 500 and the tech-savvy Nasdaq Composite gained 1.9% at 4,415 and 3.4% at 14,240.
12.00pm: US stocks all in the green
US blue chips edged higher around midday on the final session of a volatile January as investors eyed more earnings reports from companies including Alphabet and Amazon later this week as well as on Friday the always crucial US jobs report.
By noon, the Dow Jones Industrial Average had gained 0.3%, or 105 points at 34,830, while the broader S&P 500 and the tech-laden Nasdaq Composite were up by 1% and 2%, respectively.
The S&P 500 traded in the green on the last day of January but it continues to be on track to close at its worst month since March 2020.
“It certainly does look like a return to normality after January’s volatility. Tech stocks are leading the way,” said Chris Beauchamp, chief market analyst at online trading platform IG.
“Earnings season is not yet over, and if we get some nasty surprises from Alphabet and Amazon this week the nascent rally might suffer a knock,” the analyst noted. “But we have a good six weeks until the next Fed meeting, which at least gives the bulls the chance to build up a good head of steam.”
11.00am: Proactive North America headlines:
Magna Mining strikes non-binding agreement for proposed joint venture with Mitsui & Co for Shakespeare Mine and posts 2022 feasibility study
Altiplano Metals boosts revenue in 4Q with higher copper sales from Farellon mine in Chile
Potent Ventures appoints finance veteran Michael Hopkinson to its board of directors
Lion Copper and Gold announces definitive agreement to acquire Chaco Bear and Ashton properties in British Columbia
Gevo begins startup of its renewable natural gas project in northwest Iowa bang on schedule
Snowline Gold provides impressive additional initial drill results from Valley zone on its Rogue gold project in the Yukon
Bloom Health Partners sees strong revenue of $9.8M in 2021 fiscal year driven by its operational health platform
Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) now trading on Nasdaq after uplisting from OTCQX Best Market
Ayurcann Holdings launches high potency THC branded 'Fuego' vapes in Alberta
Clean Seed Capital set to introduce Mini-MAX unit to India in March this year
Canada Silver Cobalt Works reveals 2022 plans at its portfolio of mineral properties in Ontario and Quebec
Adcore renews advertising contract with Israeli Government Advertising Agency
Trillion Energy says it's moving closer to bringing SASB field into production this year as energy markets strengthen
Therma Bright completes US Clinical Performance Study subject recruitment for its AcuVid COVID-19 Rapid Antigen Saliva Test
Heritage Cannabis set to launch nine new products in Ontario cannabis market
Braxia Scientific says it continues psychedelic-based clinical research trials to support future drug development
FansUnite CEO Burton cheers iGaming Ontario announcement to launch new regulated online gaming market in April 2022
Else Nutrition begins selling its child nutrition products on Kroger.com
GR Silver Mining (TSX-V:GRSL) reports more drill results from underground program at San Marcial, which augur well for resource expansion
Facebook’s metaverse arm Reality Labs to hog spotlight in this week’s update
Benchmark Metals unveils more positive drill results from Cliff Creek deposit at Lawyers asset
MGC Pharmaceuticals records strongest ever quarterly sales; Cognicann phase II trial delayed
Anglo Pacific makes chief investment officer new CEO
Powertap Hydrogen Capital says its 49%-owned subsidiary, AES-100, a leading clean hydrogen technology company, has received two of its latest production cells
9.45am: US benchmarks start mixed
US stocks started mixed, as predicted, on the last day of January, as traders brace for interest rate rises this year from the Fed.
In early deals in New York, the Dow Jones Industrial Average shed around 120 points to stand at 34,605 The S&P 500 was near flat at 4,431. But the tech-heavy Nasdaq added around 89 points at 13,859.
The major benchmarks are poised to close out the first month of the year with heavy losses.
The Dow Jones is on pace headed for a 4.9% monthly fall, while the S&P 500 is down 7.2%. The Nasdaq is on track for a near 12% slide this month.
6.30am: US stocks set for mixed start
US stocks look set to start mixed on Monday, the final trading session of the first month of 2022, with major indexes poised to close January with heavy losses following a month of volatile trading amid worries over impending Federal Reserve interest rate hikes.
Futures for the Dow Jones Industrial Average were 0.3% lower, those for the S&P 500 edged down 0.1%, but contracts for the Nasdaq-100 added 0.4%.
Stocks have tumbled in January as traders have tried to assess how fast the Fed may raise interest rates in response to heightened inflation and a tight labor market.
Through to last Friday, the S&P 500 index is down 7% for the month, on course for its worst monthly performance since March 2020. The tech-heavy Nasdaq Composite is down 12% for January and is set for its worst month since October 2008.
In pre-market trading, shares of Citrix Systems fell amid reports the cloud-computing company is close to a roughly $13 billion deal to go private.
Hussein Sayed, chief market strategist at Exinity commented: "January has been a month to forget for many investors after hundreds of billions of dollars were wiped off equity and bond markets. Traders have shifted from the speculative corners of the market to safe-haven assets as global stocks have tumbled over the past four weeks. Unprofitable growth companies, cryptos, and SPACs have felt most of the pain as the Federal Reserve prepares for its war against inflation, clearly indicating that the game has now changed following two years of extraordinary easy monetary policy.
"The Fed last week indicated it would lift interest rates in March for the first time since 2018, with markets guessing how many more hikes would occur during the rest of the year. Raphael Bostic, President of the Fed's Atlanta branch, even hinted at the possibility of a 50-basis point rate hike in March and raising rates at each of the seven remaining policy meetings. However, his base case scenario remains three 25-basis point increases for this year, though much will depend on economic data."
He added: "So far, a third of the companies in the S&P 500 have reported Q4 2021 results, with 77% managing to beat EPS estimates. However, the beats are coming at a smaller margin than the 5-year average, which explains why earnings have not been very supportive of equity indices. More than 100 S&P 500 companies are due to announce results this week, including tech giants Alphabet, Meta, and Amazon. Given the new environment we're living in today, it will require robust results and positive guidance to encourage investors to buy the latest dip in the growth sector."
"On the data front, all eyes will be on Friday's US non-farm payrolls report. The US economy is expected to have added 175,000 jobs in January, compared to 199,000 last month. However, estimates vary widely due to the disruption from the Omicron coronavirus, with some even predicting a negative print. Previously, the bad news was conceived as good news as a deteriorating jobs market meant further monetary policy easing.
"This time, a negative print shouldn’t deter the Fed from tightening policy, as the central bank focuses on rampant inflation. That's why it makes more sense to focus on wage growth rather than the headline jobs figure in the report. Tuesday's ISM Manufacturing PMI and Wednesday's ISM Services PMI will also provide further guidance on the inflation trajectory and should be on the radar of investors," Sayed concluded.