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[U.S. market]S&P 500 rebounds, scrutinizing corporate earnings-dollar 130 yen low – Bloomberg

In the US stock market on the 24th, the S&P 500 stock index fell for the first time in three business days. Amid heightened fears of a recession, the move has scrutinized a string of financial results for clues about the outlook for U.S. companies.

stock closing price Compared to the previous business day Rate of change
S&P 500 Stock Index 4016.95 -2.86 -0.1%
Dow Jones Industrial Average 33733.96 104.40 0.3%
NASDAQ Composite Index 11334.27 -30.14 -0.3%

The Dow Jones Industrial Average, a measure of economic activity, fell. Railroad company Union Pacific’s earnings have been disappointing.3M, a manufacturer of daily necessities and industrial goods, showed the full-year Earnings forecasts were below analyst expectations. The company also announced plans to cut jobs. Homebuilder DR Horton, meanwhile, posted better-than-expected earnings.

In after-hours trading after the end of regular trading, the exchange-traded fund (ETF) “Invesco QQQ Trust Series 1” (QQQ) linked to the Nasdaq 100 index rose. Microsoft reported earnings after the close, beating market expectations for adjusted earnings per share. Meanwhile, Texas Instruments (TI) saw its revenue decline for the first time since 2020.

An index of business activity in the United States posted a seventh straight month of contraction in January, although it rose from the previous month. The index indicating input prices turned upward, suggesting that inflationary pressures are prolonging.

U.S. Corporate Activity Declines for 7th Consecutive Month, Suggesting Prolonged Inflation-S&P (1)

“You have to ask if the stock has been pushed to a level that is not supported by the information coming soon,” said Kenny Polcari, senior market strategist at Slatestone Wealth.

Jeremy Grantham, co-founder of Grantham Mayo van Otterloo (GMO), said the bursting of the U.S. stock market bubble was far from over, and investors were buoyed by a strong start to the year. A warning not to overdo it.

“The scale of the problem is bigger than normal, probably the largest I’ve ever experienced,” he said.

S&P 500 down 17% this year, bubble not over yet: Grantham

US Treasuries

U.S. Treasuries rose, centered on long-term bonds. The Composite Purchasing Managers Index (PMI), which measures U.S. business activity, exceeded market expectations, and there was a moment when it fell.

government bonds Latest price YoY change (bp) Rate of change
US 30-year bond yield 3.60% -7.94 -2.2%
US 10-Year Treasury Yield 3.45% -5.89 -1.7%
US 2-Year Treasury Yield 4.21% -1.93 -0.5%
US Eastern Time 16:57

Wall Street is widely expected to raise interest rates by 0.25 percentage points at each of the next two Federal Open Market Committee (FOMC) meetings, with a seven-week gap between them. Uncertainty about the outlook is increasing.

“Given the gap between the February and March meetings, the FOMC has a better understanding of the U.S. economy when it meets late in the March quarter,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets. I think they are,” pointed out in the report on the 23rd. “The information available between the two meetings will not be sufficient to hold off a 0.25 percentage point rate hike in March, but it may rule out a rate hike in May,” he said. continued.

foreign exchange

The dollar fell in the foreign exchange market. The dollar fluctuated up and down during the day following the PMI index that measures US corporate activity in January and a series of US corporate earnings results, and was largely driven by movements in US Treasury yields.

The yen appreciated against the dollar to the low-130 yen level against the backdrop of a decline in US Treasury yields. At one point, the yen was sold as low as 131.12.

money order Latest price Compared to the previous business day Rate of change
Bloomberg Dollar Index 1224.42 -0.81 -0.1%
dollar/yen ¥130.20 -¥0.47 -0.4%
euro/dollar $1.0888 $0.16 0.1%
US Eastern Time 16:58

crude oil

Crude oil futures fell. West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) plunged to their biggest drop since early January.

The disappointing results of several U.S. companies appear to have hurt the near-term outlook of energy traders.

3M announced today that its fourth quarter 2022 adjusted earnings per share and adjusted operating margin both fell short of analyst expectations. The outlook for adjusted earnings for the full year 2023 also fell short of market expectations.

3M to cut 2,500 jobs; full-year 2023 profit outlook below market expectations

Ed Moya, senior market analyst at Oanda, said these results have dampened economic optimism in the short term, with oil prices “wiping out some of the recent gains.”

Market participants will continue to monitor company earnings releases for clues about the economic outlook. Moya said the earnings of oil giants such as Chevron and ExxonMobil and multinationals such as Tesla will be the focus of attention as they look to see where Chinese demand will go.

March WTI crude futures fell $1.49, or 1.8%, to close at $80.13 a barrel. London ICE North Sea Brent March contract closed at $86.13, down $2.06, or 2.3%.

Money

New York gold futures market continues to rise. Traders turned to economic data to gauge the trajectory of the U.S. interest rate hike.

S&P Global January Composite Preliminary PMI readings showed declining activity for the seventh month in a row.

This week, the focus will be on a range of indicators, including the U.S. Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses to gauge inflation.

Gold futures on the New York Mercantile Exchange (COMEX) for April closed at $1,952.20 an ounce, up $6.80, or 0.4%.

Original title: Stocks Churn Amid Earnings; QQQ Up in Late Trading: Markets Wrap (Excerpt)

Treasures Rally Led by Long End, Boosted by European Bond Gains (excerpt)

Bond Traders Hedge Prospect That This May Be Fed’s Last Hike (1) (excerpt)

Dollar Eases With Yields After PMI Report, Earnings: Inside G-10 (Excerpt)

Oil Falls Most in Nearly Three Weeks as Traders Shun Risk (excerpt)

Gold Wavers as Traders Assess Rate Hike Path, Economic Data (excerpt)

The article is in Japanese

Tags: #U.S marketSP rebounds scrutinizing corporate earningsdollar yen Bloomberg

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