4.02pm: Wall Street closes mixed
US markets edged downward at closing as the indices continued to exhibit volatility– wavering between gains and losses– amid growing concerns about the upcoming Fed policy changes and corporate earnings.
At closing, the Dow Jones Industrial Average maintained a flatline change or gaining 1 point at 35,090, alongside the Nasdaq Composite shedding 0.6% at 14,016, and the S&P 500 recording losses by 0.4% at 4,483.
Earnings from Pfizer and KKR are due Tuesday, while Uber and Disney are expected to unveil their quarterly reports on Wednesday. Coca-Cola, Twitter, and PepsiCo (NASDAQ:PEP) will also issue their earnings later this week.
12.05pm: US benchmarks in the red
US stocks were all in decline by midday on Monday amid nervousness about a potential Federal Reserve interest rate hike as early as next month, with investors awaiting more earnings and fresh economic data.
At noon, the Dow Jones Industrial Average had slipped by 12 points, still a flatline change in percentage terms, to 35,077, while the S&P 500 and the tech-savvy Nasdaq Composite fell by 0.2% and 0.4%, respectively.
"Monday’s trading lacks some of the madness that has characterized the past two weeks, but it is likely to be just a lull,” commented Chris Beauchamp, chief market analyst at online trading platform IG.
He noted that the pronouncements on interest rates and inflation outlooks from central bank policymakers continue to rock markets, “and we are going to face more of the same as the market looks towards the next round of meetings from the big central banks.”
“This is all a far cry from 2021, but reflects the change in circumstances seen in recent months, and points towards a continuing high-volatility world,” he added.
Companies including Pfizer, Uber, Coca-Cola, and Disney are scheduled to issue quarterly earnings reports in the coming days. Meanwhile, the latest US Consumer Price Index is due on Thursday, further highlighting inflationary pressures.
10.05am: Proactive North America headlines:
Google sued for €2.1bn by Swedish price comparison firm PriceRunner
Ximen Mining closes $2.5 million strategic investment by New Gold
Camino Minerals says granted drill permits to target high-grade, near-surface copper mineralization at Los Chapitos in Peru
Adcore's efforts recognized as company is upgraded to Elite tier partner by Microsoft
NEO Battery doubles annual silicon anode output capacity target after receiving commercial plant site approval
Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) appoints Joshua Allen as CEO for its Malta and Rwanda subsidiaries
Pantheon Resources shares soar as first of two well results bode well for Alaska project
C3 Metals mobilizes second, larger drill rig at Jasperoide project in Peru
ACME Lithium receives approval to drill its Clayton Valley lithium brine project in Nevada
ElectraMeccanica (NASDAQ:SOLO) offers commercial fleet update with 20 cars delivered to 15 customers
New Pacific Metals (TSX:NUAG, NYSE:NEWP) has working capital of US$38.1 million at end of fiscal second quarter to advance Bolivia assets
Kovo HealthTech sees Omicron-related healthcare labor shortages accelerating shift to digital medical billing outsourcing in US
ME2C Environmental (OTCQB:MEEC) comments on US EPA proposal to reaffirm 2012 mercury and air toxic standards for power plants
Phunware strikes strategic political partnership with Campaign Nucleus
Adyton Resources (TSX-V:ADY, OTCQB:ADYRF) appoints Anthony Williamson to its board of directors; says Rod Watt resumes role as chief geologist
Canntab Therapeutics announces historic agreement with First Nations Grower to address opioid crisis among Indigenous Peoples
District Metals poised for drilling at Bakar property in BC after Elephant Crossing target discovery
Psyence wins ISO certification from British Standards Institute for its natural Psilocybin production facility
CULT Food Science closes strategic investment in cultured chocolate manufacturer California Cultured
FansUnite says UK bookmaker McBookie reports surge in turnover and gross win for 2021
Thesis Gold uncovers new gold zone from 2021 drilling at Thesis III zone at Ranch project
Thor Explorations announces start of 2022 drilling program at its Douta Gold project in Senegal
ESE Entertainment says Digital Motorsports subsidiary inks reseller deal with Corsair Gaming
Benchmark Metals posts more positive results from Lawyers project, this time from Cliff Creek North
Forward Water Technologies (TSX-V:FWTC) signs definitive agreement with Membracon (UK) that outlines the terms of their joint venture
10.00am: US indices mixed at opening
US benchmarks started mixed on Monday ahead of a busy week of corporate earnings and fresh economic data on inflation.
The Dow Jones Industrial Average shed 2 points, a flatline change in percentage terms, at 35,087, while the tech-laden Nasdaq Composite and the broader S&P 500 gained 0.9% and 0.3%, respectively.
“Going into a new week, the dominant theme in the market is the same and will be for some time,” said Craig Erlam, senior market analyst, UK & EMEA, OANDA. “The last couple of weeks has only elevated that as central banks have shifted into a higher gear and markets have continued to price in ever more tightening.”
Erlam noted that one thing that will help on that front is an easing of inflationary pressures or at least some indication of that happening.
“This week's inflation data is unlikely to provide that and we're probably a couple of months from the peak,” he said. “So while that will bring some anxiety if we're once again seeing above estimate numbers, it's things like the surveys that could provide hope that we're on a better trajectory.”
6.30am: Stocks expected to open lower
US stocks were expected to ease back at the start of a new week as investors continue to digest Friday's stronger-than-expected January payrolls report and eye more earnings from major companies including Hasbro (NASDAQ:HAS).
Futures for the Dow Jones Industrial Average were down 0.2% on Monday, while those for the S&P 500 index shed 0.3%, and contracts for the tech-laden Nasdaq-100 futures lost 0.2%.
Friday’s jobs report turned traders’ attention back to Federal Reserve monetary policy, which is expected to tighten as early as next month as the US economy continues to recover.
Neil Wilson, chief market analyst for Markets.com noted: "Wages were up big, jobs growth much better than expected; a reading that gives the Fed carte blanche to hike in March by 50bps should it choose to. Also, there were some massive revisions to prior months.
"Indeed, the market is now pricing in a roughly one in three chance that the Fed raises its funds rate by 50bps next month, swaps show the market is pricing three 25bps hikes by end of June."
Stocks have made a volatile start to the year, amplified last week by extreme moves in tech stocks. Shares in Facebook owner Meta Platforms saw a record-breaking decline following an earnings disappointment, while Amazon.com shares posted their biggest rise since 2015 after its latest quarterly earnings.
The earnings season will roll on today, with meat processing giant Tyson Foods (NYSE:TSN) and toymaker Hasbro (NASDAQ:HAS) scheduled to report ahead of the opening bell. Earnings due later this week include Pfizer and KKR on Tuesday, Uber Technologies and Walt Disney on Wednesday, and Coca-Cola, PepsiCo (NASDAQ:PEP) and Twitter on Thursday.
Meanwhile, Peloton shares soared in premarket trading Monday after The Wall Street Journal reported that the stationary-bike company was drawing interest from Amazon and other potential suitors.
Cryptocurrencies gained Monday, with bitcoin rising 5% having risen above $40,000 on Friday after spending two weeks below that level
But oil prices fell amid signs of progress in Iran nuclear talks. Late last week, the US government waived some sanctions aimed at reviving the 2015 nuclear deal. That could mean that restrictions on Iran’s oil industry are lifted, bringing new supply to the market, according to analysts.