Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Marketmind: Bears at the gate

EconomyJan 24, 2022 03:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Wall Street sign hangs on a signpost in front of the New York Stock Exchange August 5, 2011. REUTERS/Lucas Jackson/File Photo

A look at the day ahead from Julien Ponthus

With a 14% fall from its November peak, not only is the Nasdaq deep in correction territory, it is also now within striking distance of the 20% fall bar which defines a bear market.

And while a U.S. Federal Reserve tightening cycle could be expected to weaken tech and other growth sectors, market stress is actually spread throughout Wall Street.

The S&P 500 has just suffered its biggest weekly loss since the COVID-19 market crash of March 2020 and is less than 2% away from a correction.

Friday's selloff came against the backdrop of a sharp fall in U.S. Treasury yields, which seems to suggest expectations of higher interest rates may not be the only factor denting sentiment ahead of this week's Fed meeting.

Until now, markets have been fairly happy to ignore the simmering tensions between Russia and the West over Ukraine but this might be changing as President Joe Biden weighs options for boosting America's military assets in Eastern Europe.

In this context, stakes are building quickly for fourth-quarter earnings, especially after high-visibility stocks such as Netflix (NASDAQ:NFLX) and Goldman Sachs (NYSE:GS) disappointed investors.

Mega-caps due to update the market this week include IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT) Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL).

As the week starts, stress is palpable across most markets -- MSCI's index of Asia-Pacific shares ex-Japan is down over 1% while South Korean shares posted their biggest drop in five weeks and European futures are in the red.

In the meantime the dollar index is ticking up and bitcoin down to $35,295, almost 50% down from its November peaks.

Key developments that should provide more direction to markets on Monday:

-US two year note auction ($54 bln)

-EU bond sale

-US earnings: Halliburton (NYSE:HAL), IBM, Logitech (NASDAQ:LOGI)

-European earnings: Dior, Swatch, Phillips

-Philips expects summer recovery from supply chain woes

-Germany's Lufthansa in talks to buy 40% stake in Italy's ITA Airways - sources

 

 

Marketmind: Bears at the gate
 

Related Articles

Airline easyJet cancels more than 200 flights
Airline easyJet cancels more than 200 flights By Reuters - May 28, 2022 3

LONDON (Reuters) - Low-cost carrier easyJet (LON:EZJ) is to cancel more than 200 flights over the next 10 days due to airport delays and other restrictions, disrupting travel...

China's first residential REITs to be launched
China's first residential REITs to be launched By Reuters - May 28, 2022

SHANGHAI (Reuters) - China's first public real estate investment trusts (REITs) based on residential properties will be launched soon, as regulators step up efforts to channel...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Church of Bear Market
Church of Bear Market Jan 24, 2022 4:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Knock knock
Sven Sorensen
Sven Sorensen Jan 24, 2022 4:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh hey, i recently became a member of your religion. Lead me to the gates of valhalla
Church of Bear Market
Church of Bear Market Jan 24, 2022 4:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sven Sorensen  Start shorting stocks to purify your soul. Buy inverse etf:s. Under no circumstances look at the original Wall Street-movie for it instigates false feeling of bull market. If you are angry do not say the f-word but FAANG.
Djjoshski martin
Djjoshski martin Jan 24, 2022 4:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
people who aren't buying nasdaq stocks rn is smart, wait for a bottom before risking your captiol
Bhavesh Khemani
Bhavesh Khemani Jan 24, 2022 4:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Waiting for the bottom? My friend no one knows thats the bottom, you wait for bottom and next moment it rebounds
S S Shet
pingo_0070 Jan 24, 2022 4:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unlike humans .. no one knows where is markets bottom ...
Abeyek Dunblex
Abeyek Dunblex Jan 24, 2022 4:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It wouldve been more easier if we know the bottom..
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email