The equity market | Weekly Excerpt
Week of January 24-28
The U.S. equity market belonging to the DIJA was able to close the week with a positive total as +1,34%.
Jerome Powell, in his statement at the end of the Federal Reserve's two-day meeting, indicated that starting in February he will only buy $30 billion worth of bonds. And he mentioned on Wednesday that there will be no change in interest rates but said that the high inflation in the country leads to expect a rate hike "soon" in the market.
On the other hand, the U.S. central bank decided to continue with the reduction of the monthly pace of bond purchases, and plans to eliminate it completely at the beginning of March.
Giant reports
- The largest technology company, APPLE has reported results, in which it beat earnings estimates, up 25% year over year, while revenues of $123.95 billion beat expectations by more than $5 billion.
- However, Microsoft also reported and recorded $51.7 billion in revenue, an increase of 20% year over year. Therefore, its operating income was $22.2 billion, an increase of 24% year over year. The company shows great growth despite the two huge acquisitions it made over the course of 2021 and last month, where it acquired Zenimax Online Media and Activision.
- On the other hand, Tesla announced its results on January 26. The electric vehicle producer reported earnings per share of 1TP4Q2.54 for the quarter, beating analysts' estimates of 1TP4Q2.36 by 1TP4Q0.18. The company earned $17.72 billion during the quarter, compared to analysts' estimates of $16.65 billion. Its revenue increased by 65.6% compared to the same quarter last year.
World markets
- First, the US equity market was able to have a breather and close the week with a positive total, mainly those industries belonging to the Dow Jones Industrial Average with +1,34%. However, the Asian market experienced a sharp correction and unlike the previous week, has closed Friday in the negative, with the biggest hit being seen by Hong Kong's Hang Seng Index. Last but not least, Europe seems to be the only region continuing its trend of the previous week, culminating with negative values where again it is the Swiss index that shows the biggest declines with -2.03%.
| America | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| DOW JONES INDUS. AVG | 34,725.47 | 1.34% | -4.44% |
| S&P 500 INDEX | 4,431.85 | 0.77% | -7.01% |
| NASDAQ COMPOSITE | 13,770.57 | 0.01% | -11.98% |
| Europa | Δ % 5 Days | Δ % YTD | |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4,136.91 | -2.19% | -3.76% |
| FTSE 100 INDEX | 7,466.07 | -0.37% | 1.10% |
| CAC 40 INDEX | 6,965.88 | -1.45% | -2.62% |
| DAX INDEX | 15,318.95 | -1.83% | -3.56% |
| IBEX 35 INDEX | 8,609.80 | -0.98% | -1.19% |
| SWISS MARKET INDEX | 12,104.44 | -2.03% | -5.99% |
| ASIA | Δ % 5 Days | Δ % YTD | |
|---|---|---|---|
| NIKKEI 225 | 26,717.34 | -2.92% | -6.29% |
| HANG SENG INDEX | 23,550.08 | -5.67% | 1.51% |
| CSI 300 INDEX | 4,563.77 | -4.51% | -7.62% |
| Bonds | Δ % 5 Days | Δ % YTD | |
|---|---|---|---|
| US Generic Govt 10 Yr | 1.77 | 0.65% | 68.24% |
| US Generic Govt 2 Yr | 1.16 | 16.06% | 992.59% |
| Germany Govt Bnd 10 Yr DBR | - 0.05 | 30.92% | 91.65% |
| UK Gilts 10 Yr | 1.24 | 6.24% | 333.45% |
| Commodities | Δ % 5 Days | Δ % YTD | |
|---|---|---|---|
| WTI | 86.82 | 1.97% | 17.03% |
| BRENT | 90.03 | 2.43% | 17.42% |
| NATURAL GAS | 4.64 | 16.00% | 35.17% |
| CORN | 636.00 | 3.20% | 7.88% |
| WHEAT | 786.25 | 0.80% | 3.41% |
| GOLD $/Oz | 1,784.90 | -2.56% | -2.20% |
| SILVER $/OZ | 22.30 | -8.30% | -4.08% |
| COPPER | 431.00 | -4.73% | -2.71% |
| PLATINUM | 1,013.50 | -1.93% | 4.77% |
| Coins | Δ % 5 Days | Δ % YTD | |
|---|---|---|---|
| EURUSD | 1.12 | -1.70% | -1.85% |
| AUDUSD | 0.70 | -2.74% | -3.40% |
| CADUSD | 0.78 | -1.48% | 0.76% |
| CHFUSD | 1.07 | -2.07% | 2.11% |
| GBPUSD | 1.34 | -1.12% | -0.89% |
| CNYUSD | 0.16 | -0.35% | 0.08% |
| JPYUSD | 0.01 | -1.35% | 0.40% |
| USDBRL | 5.38 | -1.28% | 3.60% |
| USDMXN | 20.81 | 1.62% | -1.28% |
| USDCOP | 3,957.00 | 0.04% | 3.12% |
| XBTUSD | 37,807.95 | 6.91% | -20.11% |
To keep in mind during the week
- First, investors will be watching for UK interest rate decisions, where attention will be paid to Governor Andrew Bailey's comments. For example, the strength of the labor market, wage growth and his view on how quickly inflationary pressures are building beyond supply chain disruptions and rising energy prices.
- Eurozone and Australian central banks will meet later in the week, in addition to other macroeconomic metrics such as the first reports of the year on unemployment and U.S. jobless claims.
- There will also be a lot of interest in the market's corporate reports during the week. Tuesday especially will receive additional attention due to the large number of large cap industrial and technology companies who both before and after market hours will release their latest quarter results, which combined with the first month of the year coming to an end, can give a good look at what is to come.
Corporate Calendar
Before Market Opening
