Positive US indices result in the latest January session

2022-02-02T11:41:42
Asian indices Oil US indices US stock
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Positive US indices result in the latest January session Oil rose below 90 dollars

Positive US indices result in the latest January session Oil rose below 90 dollars: US stock indices ended the latest January session higher, despite declining for the whole month. 

Evest follows the latest market developments in the following report.

Topics:

US stock indices turn from loss to gain at the end of the session

A significant loss in US indices in January

US stock performance

Asian indices are in the green Zone

Oil rose but was still below $90 per barrel

 

US stock indices turn from loss to gain at the end of the session

US stock indices grew amazingly in the closing hours of Monday’s volatile session.

Market participants continue to monitor the corporate reporting season ,
(about 110 companies listed in the Standard & Poor’s Index account will report this week) ,
and predict the course of interest rate changes in the United States Federal Reserve (FRS) system.

The US Labor Market Report for January, which will be published Friday, will soon be brought to investors’ attention.

The Dow Jones Industrial Index rose by 406.39 points (1.17%) to 35131.86 points on Monday.

Standard & Poor’s 500 rose by 83.7 points (1.89%) to 4515.55 points.

The Nasdaq Composite Index jumped by 469.31 points (3.41%) to 14239.88 points.

Analysts at Goldman Sachs believe the Fed will raise interest rates this year at a higher rate than previously expected.

They now expect five increases of 25 basis points each,
resulting in a rate range of 1.25-1.5% annually by the end of the year.

The first rise is expected in March, and the next – in May, July, September, and December.

In addition, the Fed may begin to reduce asset volumes on the balance sheet from June, Goldman Sachs believes.

A significant loss in US indices in January

Since the beginning of January, the Dow Jones index has lost 3.3%.

In the meantime, Standard & Poor’s index fell by 5.3% and the Nasdaq Composite index fell by 9%,

making its January loss the worst since March 2020, MarketWatch writes.

About 110 S&P 500 companies will report this week,
including NXP Semiconductors, Alphabet, Meta Platforms, Amazon, Exxon Mobile and General Motors.

 

US stock performance

Otis Worldwide Corp.’s stock price rose by 3.2% on Monday.

The manufacturer of lift equipment recorded a 12% increase in net income in the fourth quarter of 2021,
but revenue fell short of market expectations.

The price of Citrix Systems Inc’s securities fell by 3.4% after the cloud company confirmed that the investment funds Elliot Management Corp., Evergreen Coast Capital and Vista Equity Partners are acquiring it for $16.5 billion.

The extension of its stock sales program to up to $500 million until the end of April for the acquisition of the UK-registered entity Carnival PLC led to a 4.4% rise in Carnival’s stock.

The program was previously expected to end on January 31.

Tesla’s capitalization jumped by about 11% after analysts at Credit Suisse raised their stock rating for the company.

The growth leaders in the Dow Jones index were the papers of Boeing Aircraft Company,
software developer Salesforce.com Inc., and the media companies Walt Disney,
whose prices rose by 5.1%, 4.7% and 3.1% respectively.

Stocks in the Walgreens Boots Alliance Inc. (-1.4%),
Amgen Pharmaceuticals Inc. (-0.9%) and Visa Inc. (-0.8%)., were among the leading stocks.

 

Asian indices are in the green Zone

Stock indices in the Asia-Pacific region are also showing moderate positive dynamics on Tuesday morning:
The Japanese Nikkei 225 index rose by 0.38%, the Hong Kong Hang Seng index – 1.1%,
and the Australian S & P/ASX 200 index – 0.65%.

In the meantime, US Standard & Poor’s futures fell by 0.3% compared to the previous day’s closing,
indicating a possible deterioration in morale on the US stock market on February 1.

 

Oil rose but was still below $90 per barrel

Oil prices rose on Tuesday, approaching a seven-year high last week.

Brent crude futures for April rose by $0.34 (0.38%) on the London Futures Exchange, to $89.6 per barrel.

Brent crude rose by $0.74 (0.8 percent) to $89.26 per barrel on Monday.

West Texas Intermediate crude futures’ prices for March rose at that moment by $0.32 (0.36%), to $88.47 per barrel,
in electronic trading on the New York Mercantile Exchange (NYMEX).

During the previous session, the future rose by $ 1.33 (1.5%) to $88.15 per barrel.

At the end of January, oil prices reached their maximum rally in a year,
and prices were backed by supply shortages and geopolitical tensions in Eastern Europe and the Middle East, according to Trading Economics.

Traders are waiting for the OPEC + ministerial meeting.

They expect the February 2 meeting to decide to continue the oil production increase plan of 400 thousand barrels per day.

The Ministers of the Alliance meet every month to adapt this decision to market conditions.

However, the agreements were never changed – despite the fact that strong price increases led to oil consumers,
particularly China, India and the United States (which are also the largest oil producers) asking OPEC + to increase supply more.

Furthermore, OPEC + is providing the market with less oil than planned,
owing to accidents and reforms in some countries, as well as under-investment in recent years. 

Therefore, in August, the deal was done by 119%, in September – by 115%,
in October – by 116%, in November – by 117%,
a million barrels per day were delivered to the market in these months, respectively,
three times – 700 thousand barrels per day – less than planned.

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