Wake Up Wall Street (SPY) (QQQ): Bonds bump equities off their perch, banks bounce back
Here is what you need to know on Wednesday, January 19:
Bond yields continue to surge as the German 10-year yield hits a near three-year high. German yields are in positive territory for the first time since May 2019. US yields are also on the move, albeit the rise has slowed slightly today. Morgan Stanley (MS) and Bank of America (BAC) may have put an end to recent bank weakness with some impressive results. However, Morgan Stanley is down in premarket after missing on revenue. Bank of America also missed on revenue, but the shares are ahead by 3% currently on a strong profit number. The large profit was helped by reserve releases, the very excuse that was used to punish Citi (C) shares last week. Go figure!
The dollar is moderately weaker at 1.1350 versus the euro. The European Central Bank (ECB) faces a showdown with the bond market, and investors begin pricing in a rate hike this year despite the ECB saying no way. Bitcoin is flat at $42,300, and Gold is at $1,819. Oil is strong at $86 as IEA says demand to strengthen.
European markets are higher: Eurostoxx +0.85, FTSE +0.5% and Dax +0.5%.
US futures are also higher: S&P +0.4%, Dow +0.2% and Nasdaq +0.6%.
Wall Street (QQQ) (SPY) Stock News
IEA says oil demand to reach pre-pandemic levels this year.
UK inflation surges again to a 30-year high of 5.4% versus the 5.2% estimate.
Morgan Stanley (MS) beats on EPS but misses on revenue.
Bank of America (BAC) beats on EPS but misses on revenue.
Proctor & Gamble (PG) beats on revenue and EPS.
SOFI shares up 18% on regulatory approval to become a bank through acquisition.
United Health Group (UNH) beats on EPS and revenue.
Tegna (TGNA) to be bought out by private equity, according to The New York Post.
AT&T (T) and Verizon (VZ) delay implementation of 5G near airports.
Mastercard (MA) makes a deal on NFT payments with Coinbase (COIN).
Pfizer (PFE) says studies show its covid pill works against Omicron.
Bath&Body Works (BBWI) added to Goldman's conviction buy list.
Lucid Group (LCID): some early-stage investors are out of PIPE lockup today.
Upgrades and Downgrades
Source: Benzinga Pro
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
