Before the U.S. stock market: the three major index futures fell and the worries were difficult to solve in the short term
News from the Financial Associated Press on January 19 (edited by Shi Zhengcheng)Following the significant retracement of the upward resistance level in the previous trading day, the three major index futures continued to decline before the market on Thursday. The expectations of interest rate hikes by European and American central banks and the prospect of economic recession still worried investors.
(Daily chart of the S&P 500 Index, source: TradingView) JPMorgan Chase CEO Jamie Dimon reiterated in an interview at the Davos summit that core inflation is still high and is unlikely to dissipate in the short term, so the policy rate will definitely be high at 5%. If the U.S. experiences only a mild recession, a rate hike could see even 6%.
Although Federal Reserve Chairman Powell can only work remotely from home after being diagnosed with the new crown, his colleagues will still be active on the stage. Both Fed Vice Chairman Brainard and New York Fed President Williams have speeches scheduled for Thursday.
Market Dynamics
As of 21:05 Beijing time, Dow futures (March 2003 contract) fell 0.83%, S&P 500 futures fell 0.86%; Nasdaq 100 futures fell 0.96%.
In the previous trading day, the three major US stock indexes collectively weakened. Among them, the S&P 500 index fell 1.56% to close at 3928.86 points; the Nasdaq index fell 1.24% to 10957.01 points; the Dow Jones index fell 1.81% to 33296.96 points.
Affected by the sentiment of US stocks overnight, European markets generally fell on Thursday, led by energy and mining stocks.
(European stock market trend on Thursday, source: Investing)
company news
[PfizerCEO:19newproductsincludingRSVvaccineareexpectedtobelaunchedinthenext18months]
Pfizer CEO Aberle said at the World Economic Forum on Wednesday that the company will launch 19 products to the market within 18 months, including vaccines against RSV, influenza and meningococcus. This speed may be unprecedented in the pharmaceutical industry. Aberle also revealed that Pfizer is continuing the development of the new crown vaccine and is currently studying the XBB 1.5 variant. Companies are also working to develop a COVID-19 vaccine that could provide protection for a year.
[It is reported that suppliers will soon start shipping lens modules for Apple AR/VR products]
According to media reports citing supply chain sources, Genius Electronic Optical (GSEO) will provide lens modules for Apple’s upcoming headset, which is rumored to be called “Reality Pro.” GSEO will start shipping in February-March 2023, according to GSEO’s supply chain manufacturer.
[Trump may return to the Facebook campaign team and has negotiated with Meta]
ET on Wednesday, former U.S. President Donald Trump said in an interview with Fox News that his campaign team is in talks with social media giant Meta to return to Facebook and Instagram. Trump said: “We’re talking to them and we’ll see how everything goes. If they let us go back, that would help them a lot, and I’m fine with that. But they need them more than we need them.” us.”
【Credit Suisse is reported to prepay cash rewards to executives within 3 years and repay proportionally after resignation】
Credit Suisse managing directors and most of its regional directors will immediately receive the cash portion of their 2022 variable pay, according to media reports citing internal memos. If the employee who received the award leaves the bank within three years, the money will need to be repaid on a pro rata basis, the memo said. The deadline to apply for the Advance Award is January 30.
[Netflix’s financial report is about to be released, and the quality of low-priced advertising services will be tested]
After the close on Thursday, streaming media leader Netflix will become the first well-known Internet company to disclose its results this round of earnings season. In terms of the most critical subscription indicators, the market currently expects the company to add 4.5 million new subscribers in Q4, which is also the worst Q4 data since 2014. Last quarter, Netflix released hits including “Wednesday,” “Knives Out,” and “Harry & Meghan.”
It is worth noting that Netflix launched a $6.99/month advertising subscription service in November last year, and related performance will also be tested by investors for the first time. However, Antenna, a streaming media data company, said that this new low-cost subscription service accounted for 15.5% and 9.3% of US user logins in December and November, respectively, while the number of subscribers accounted for less than 1% of all US subscribers. .
[Procter & Gamble’s Q4 revenue and profit both declined slightly year-on-year]
Before the market opened on Thursday, FMCG giant Procter & Gamble released its financial report for the fourth quarter of last year, in which revenue of US$20.77 billion and net profit of US$3.9 billion were in line with market expectations, but both fell slightly compared to the same period last year.
[Yum! Brands: Nearly 300 restaurants in UK affected by cyber attack]
Yum! Brands said late on Wednesday that the company was hit by a cyber attack that affected some of its information technology systems, shutting nearly 300 restaurants in the UK for a day. All stores are now operating and an investigation into the incident has been launched, the company added. The company said it does not expect the event to have a material adverse effect on its business, operations or financial results.
Noteworthy events in the US stock market time period (Beijing time)
January 19th
21:30 U.S. initial jobless claims for the week ending January 14, total U.S. housing starts in December, U.S. building permits in December, U.S. Philadelphia Fed manufacturing index in January
22:00 Boston Fed President Collins delivers a speech
Full-day World Economic Forum Annual Meeting in Davos (until January 20)
January 20th
02:15 Federal Reserve Vice Chairman Brainard delivers a speech
07:35 New York Fed President Williams delivers a speech
