Wake Up Wall Street (SPY) (QQQ): Yields keep rallying, but equities follow suit
Here is what you need to know on Wednesday, February 9:
Geopolitical events provided some relief to equity markets yesterday as various world leaders shuttle around making their views on Russia and Ukraine felt. The main outcome was the apparent unity between Germany and the US on the Nordstream 2 project. Germany is concurring that any Russian invasion will see the project sanctioned.
Luckily, Europe is going through one of the mildest winters on record, so it can afford to push the project down the road and look like it is playing hardball at the same time. Yields continue to rise, but equity markets are not spooked. Mostly, it is a case of all on hold until tomorrow's CPI data. We have already spoken of how the risk-reward is tilted in favor of a relief rally on a low number.
The dollar is little changed at 1.1430 versus the euro, oil is lower at $89.10, and gold is at $1,826. Bitcoin is steady at $44,000, and yields are steady with the US 10-year at 1.93%. German yields are reversing this morning after a series of strong sessions.
European markets are higher: Eurostoxx +1.3%, DAX +1.6% and FTSE +0.45.
US futures are higher too: S&P +0.95, Dow +0.65 and NASDAQ +1.3%.
Wall Street News (SPY) (QQQ)
ECB member Nagel says rates could rise in 2022.
Softbank set to IPO in the US.
Xpeng (XPEV) included in Hong Kong Stock Connect, shares rise 11%.
Peloton (PTON) still gaining after yesterday's second day of 20%-plus gains.
Canopy Growth (CGC) up 6% premarket on strong earnings.
Chipotle (CMG) up 6% premarket on strong earnings.
Lyft (LYFT) falls 5% on weak guidance.
Nikola (NKLA) denies a report that it instituted a hiring freeze-CNBC.
Enphase Energy (ENPH) up 20% on strong earnings.
New Relic (NEWR) down 20% on earnings.
Doximity (DOCS) up 11% on earnings.
Solar Edge (SEDG) up 8% on read across from Enphase?
Madison Square Garden (MSGE) down 4% on earnings.
Upgrades and Downgrades
Source: Benzinga Pro
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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.
