Wall Street Surrenders Gains to Close Sharply Down Thursday, Europe Mostly Higher.
London, Thursday, 20 January 2022-
US Markets Summary
The comeback in IT companies slowed on Thursday, as US markets ended the day lower after earning gains earlier in the day. The Dow Jones dropped 300 points after gaining more than 450 points earlier, the S&P 500 dropped 1.1 percent, and the Nasdaq Composite dropped 1.3 percent after gaining 2%.
Meanwhile, government yields fell for a second day from two-year highs, as traders turned their attention to corporate earnings. Travelers Companies and American Airlines reported higher-than-expected earnings, but United Airlines decreased its growth target for 2022 due to the spread of the omicron variation.
After the closing bell today, Netflix and PPG Industries are expected to report. Meanwhile, new jobless claims rose to their highest level in three months, but the Philadelphia Fed manufacturing index beat expectations, offering mixed signals about the economy's recovery.
European Markets Summary
European equities bounced back to end the day mostly higher.
In afternoon trade on Thursday, most European stock indexes recovered, with Frankfurt's DAX 30 climbing 0.6 percent to 15,902 and markets in Paris, Milan, and Madrid gaining between 0.3 and 0.5 percent. Investors reacted positively to positive profit reports, but fears about rising inflation and a faster pace of interest rate hikes in 2022 weighed on confidence.
Puma, a German sportswear company, surged 1.2 percent after reporting preliminary quarterly sales and core profit that were better than expected. Deliveroo surged 2.5 percent after reporting a 36 percent year-over-year increase in the gross value of orders placed on its platform in the fourth quarter, while Unilever declined 0.5 percent after abandoning ambitions to buy GlaxoSmithKline's consumer healthcare business.
German producer price inflation jumped to an all-time high of 24.2% in December on higher energy cost.
U.S. Stock Market Indexes
S&P 500: 4,482.73, 15:59:57 | NYSE-50.03 -1.10%
Nasdaq: 14,154.0, 17:05:00 | NASDAQ-186.2 -1.30%
Dow Jones: +34,715.39, 16:55:12 | NYSE-313.26 -0.89%
European Stock Market Indexes
STOXX Europe 600: rose 2.45 points, or 0.51%, to 483.35.
FTSE 100 in London: ended at 7,585.01, down 4.65 points, or 0.06%.
DAX 30 in Germany: up 0.65%, or 102.61 points to 15,912.33.
CAC 40 in France: added 0.30%, or 21.18 points, to 7,194.16 points.
FTSE MIB 30 in Italy: up 199.15 points, or 0.73%, at 27,570
IBEX 35 in Spain: up 39.7 points, or 0.45%, to 8,814.6.
Ten-year U.S. Treasury note: -0.059 at 1.810
Dollar index: +0.280.29% at 95.79
VIX volatility index: +1.74 (7.30%) at 25.59
Brent crude: -1.01 or -1.14% at $87.37 per barrel
West Texas Intermediate: -0.91or -1.06% at $84.64 per barrel
Gold: −0.44 (−0.02%) at $1838.57 an ounce
Silver: +0.29+1.20% at $24.47 an ounce
Bitcoin: −407.50 (0.98%) at $41,260.80
Ethereum: −12.36 (0.40%) at $ 3,072.16
(Written and edited by: The Decision Maker)