Jakarta, CNBC Indonesia – The United States (US) stock market weakened at the opening of trading Friday (21/1/2022) after Netflix released disappointing financial performances.
The Dow Jones Industrial Average fell 60 points (-0.2%) at 08:30 local time (21:30 WIB) and within 30 minutes to minus 71.28 points (-0.21%) to 34,644.11. The S&P 500 fell 33.31 points (-0.74%) to 4,449.42 while the Nasdaq dropped 173.67 points (-1.23%) to 13,980.34.
Netflix shares plunged 21% in opening trading today after releasing financial results showing a decline in the number of new subscribers. The shares of its competitors also fell, Disney+, which is a constituent of the Dow Jones stock index, dropped 5%.
Peloton shares rebounded 7% at the open, after falling 23.9% yesterday following the news CNBC International that the company is temporarily discontinuing production of their fitness equipment.
In the regular market yesterday, the Dow Jones index fell 313 points (-0.89%). After a few hours, the index of 30 stocks that became the benchmark for the US stock exchange rose more than 450 points. The S&P index rose 1.53% and then fell 1.1%. The Nasdaq ended down as much as 1.3%.
Ahead of the US central bank (Federal Reserve/The Fed) meeting next week, yields (yield) 10-year tenor bonds reached 1.9% yesterday and today receded to the level of 1.87%.
“Ascension yield Bonds for the next 1 or 2 years represent a change in the Fed’s monetary policy,” said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute. CNBC International.
The Dow Jones and S&P 500 indexes fell for the third week in a row. The Nasdaq fell close to 5% for the week, then fell again for a fourth straight week in its biggest correction since October 2020. Stocks small cap also affected as the Russell 2000 index went red for the week, which was the deepest drop since June 2020.
However, some market participants believe that the stocks of technology issuers that have corrected will be hunted again, especially those that have offered value strong fundamentals. “When the Nasdaq index is in the correction zone, we can see opportunities in specific areas such as the technology sector such as semiconductors, cloud stocks, and mega-cap stocks,” said Robert Schein, Planning Director for Blanke Schein Wealth Management, quoted by CNBC International.
Schlumberger will release its financial performance before market trading opens today. In addition, there will be a report on export sales at 08:30 local time, followed by a report on leading economic indicators at 10:00 local time.
CNBC INDONESIA RESEARCH TEAM
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