Three major U.S. stock indexes were mixed overnight as Treasury yields surged in Europe and the U.S. and Amazon (AMZN.US) rose more than 13 percent

2022-07-16 0 By

Zhitong Financial APP learned that the US non-farm employment in January increased by 467,000 more than expected, showing that the US economy is still growing steadily, superposition on the increasingly hawkish European Central Bank and the Bank of England, European and American bond yields surged again.German 10-year yields were up 6.3 basis points at 0.205 per cent;The 10-year GILt yield was up 4.3 basis points at 1.411%, close to the November 26 2018 peak of 1.417%;The yield on the benchmark 10-year Treasury note was up 7.78 basis points at 1.9085%.At the close, the Dow was down 21.42 points, or 0.06 percent, at 3,5089.74.The Nasdaq rose 219.19 points, or 1.58%, to 14098.01.The S&P 500 rose 23.09 points, or 0.52 percent, to 4500.53.Amazon (AMzn.us) closed up 13.54 percent, Snap(Snap.us) rose 58.82 percent, Tesla (TSLA.us) rose 3.61 percent and Ford Motor (F.U.) fell 9.7 percent.For the week, the Dow rose 1.05%, the S&P 500 gained 1.55% and the Nasdaq 2.38%.Germany’s DAX30 index fell 1.75%, Britain’s ftse 100 fell 0.17%, France’s CAC40 fell 0.77% and the euro stoxx 50 fell 1.31%.The Nikkei 225 rose 0.73%, South Korea’s KOSPI rose 1.57%, Singapore’s Straits Times index rose 0.47%, Indonesia’s Jakarta Composite index rose 0.55%, Thailand’s SET index rose 0.31%, the Philippines’ KOSPI rose 1%, India’s Bombay 30 lost 0.24%.Malaysia’s Kospi index fell 0.19%.The dollar index rose from a two-week low after data showed us jobs were created much more than expected, increasing the chances of the Federal Reserve raising interest rates at its March policy meeting.The U.S. dollar index (DXY), which measures the greenback against a basket of six major currencies — the euro, Swiss franc, Yen, Canadian dollar, sterling and Swedish krona — was up 0.1 percent at 95.446.But the dollar was still down 1.8% for the week, its biggest weekly percentage decline since November 2020.Cryptocurrency gains push Bitcoin back above $40,000.Bitcoin rose more than 8% to $40,551.4, its biggest one-day gain since October 15.Ethereum rose more than 10% to $2,950.15.Cryptocurrencies have largely tracked tech stocks in the past few months after amazon’s strong earnings boosted sentiment in the sector.Gold edged higher in volatile trading as rising inflation fears helped cushion pressure from a stronger dollar and rising US Treasury yields.COMEX gold futures for April delivery ended up 0.2 percent at $1,807.80 an ounce, up more than 1.0 percent for the week.”We continue to see increasing inflationary pressures in the economy,” said David Meger, director of metals trading at High Ridge Futures.So the market expects the Fed to take steps to fight inflation.”Oil prices hit a seven-year high, rising for the seventh week in a row, amid lingering concerns about supply disruptions caused by cold weather in the United States and ongoing political unrest in the world’s major oil producers.WTI crude settled up $2.04, or 2.3 percent, at $92.31 a barrel after rising as high as $93.17, its highest level since September 2014.Brent crude futures rose $2.16, or 2.4 percent, to settle at $93.27 a barrel after earlier hitting $93.70, the highest level since October 2014.Copper prices rose.Copper for three-month delivery on the London Metal Exchange rose 0.3 percent to $9,858 a tonne.Aluminum rose 0.2 percent to $3,055 a tonne, zinc rose 0.6 percent to $3,616.50, lead climbed 1.2 percent to $2,217, tin rose 0.3 percent to $43,010 and nickel slipped 0.4 percent to $22,770.Non-farm payrolls rose 467,000 in January.The Labor Department’s January employment report on the country showed the number of non-farm workers in the United States rose by 467,000 in January, well above expectations of a 125,000 gain after a revised increase of 510,000 in December.Labor Department data also showed the U.S. unemployment rate stood at 4.0% in January, compared with 3.9% expected.Average hourly earnings rose 0.7% month-on-month in January, versus expectations of 0.5%, after a revised 0.5% gain in December.Average hourly earnings rose 5.7% in January from a year earlier, versus expectations of 5.2%.The NFP data was strong and markets are pricing in a near 50% chance of a 50 basis point hike in March.Overnight index swaps tied to the fed’s meeting date show the fed funds rate at about 44 basis points after the March meeting, about 36 basis points higher than the current effective fed funds rate of 8 basis points.That suggests traders think at least a quarter-point hike is certain, with a roughly 44% chance of a half-point hike.Expectations of a rate rise were boosted by a stronger-than-expected us non-farm payrolls report, which provided momentum for the Fed to tighten policy more quickly.Former U.S. Treasury Secretary Lawrence Summers sees the Fed raising interest rates seven times this year, with one increase likely to be more than a quarter point.Former U.S. Treasury Secretary Lawrence Summers said investors need to prepare for the Fed to raise interest rates at all seven of its remaining meetings this year, or even for the possibility of a one-time increase of more than 25 basis points due to inflation.The Fed is “already late,” and anyone who doesn’t believe the Fed is likely to raise rates this year is “underestimating the range of possibilities.”Summers warned that the Fed may need to tighten policy more aggressively than it currently expects.Petrol prices in the US rose to their highest level in more than seven years.The national average for a gallon of gas was $3.423, just above the record high of $3.422 set Nov. 8, according to AAA.The price means consumers are now paying more for gasoline than at any time since September 10, 2014.A year ago, the national average was $2.14.With oil at $100 a barrel, GasBuddy’s Patrick De Haan says there will be upward pressure on gasoline prices.”The cost of everything this year could be higher than expected,” he said.By Memorial Day (at the end of May), the national average could exceed $4 a gallon.”Amazon (AMzn.US) added more than $190 billion in market value in a single day.Amazon closed up 13.54% at $3,152.79, its biggest one-day gain since 2015.The company added $191 billion in value, the largest single-day gain for a stock in the U.S. market.Amazon’s stock surged in part because sales of its cloud computing business beat Wall Street expectations and the company raised the price of its U.S. Prime membership subscription service for the first time since 2018, easing some concerns about the impact of higher costs on profitability.Apple (AAPL.us) could unveil a new device as soon as March 8.Reports suggest apple could unveil a new product as soon as March 8.The report said Apple is preparing to unveil a new low-cost 5G iPhone and iPad, and possibly a new Mac, at the event.The event will be Apple’s first since it unveiled its new MacBook Pro laptops in October 2021.It is expected to be a live online broadcast.Since the outbreak of COVID-19 in March 2020, Apple has been promoting its products through an online campaign.Luckin coffee (LKNcy.us) has already paid $180 million in civil penalties related to the SEC settlement.Luckin said it had already paid $180 million in civil penalties.The penalty is the result of a previously disclosed settlement with the Securities and Exchange Commission.It is reported that on December 16, 2020, Luckin coffee announced that it had settled an SEC investigation into fabricated transactions carried out by certain former executives and employees of the company.Luckin agreed to pay a $180 million civil penalty to the SEC, according to public information.Riot Blockchain(Riot.us) releases January Production and operations update.The company produced 458 bitcoins in January 2022, an increase of about 252% from January 2021.As of January 31, 2022, it held approximately 5,347 bitcoins, all produced by the company’s self-mining operations.Ubs: Raised price target on Amazon (AMzn.us) to $4,625 from $4,550.Fitch: Confirms Deere shares (DE.US) at ‘A’/’F1’, stable outlook ROYAL Bank of Canada: Cuts Snap(Snap.us) to peer line from outperform, lowers price target to $40 from $54.BMO: Downgraded Biogen (BIib.us) to in-line from outperform.Jp Morgan: Suncor Energy (SU.us) was downgraded to neutral from overweight.