(ABM FN-Dow Jones) The US stock markets ended in the green on Monday. The S&P 500 rose 1.1 percent at 4,137.29 points, the Dow Jones index gained 1.1 percent at 34,245.93 points and the Nasdaq closed 1.5 percent higher at 11,891.79 points.
“Given the Fed’s hawkish tone last week, all eyes will be on the January inflation report on Tuesday. A higher-than-expected inflation rate will look more like a trend than a one-time event, according to traders, and could have a more profound effect on the view of the market on peak interest rates,” stated SPI Asset Management.
Monday was quiet on a macroeconomic level.
Inflation in the US in January is expected to be 6.2 percent and core inflation to be 5.4 percent. In December inflation was 6.5 percent and core inflation was 5.7 percent.
“What matters is at what level inflation begins to stabilize,” said Saxo Bank’s Peter Garnry. Otherwise, the Fed will be in a position where it has to do more or keep rates higher for longer than the market currently calculates, the market strategist said.
Meanwhile, the quarterly earnings season has already passed its peak, with 69 percent of the companies in the S&P 500 index reporting their results.
As always, the results are better than expected on average, but the difference is smaller than usual, with a windfall of 1.1 percent on average, compared to an average of 6.4 percent over the past decade, according to FactSet.
The euro/dollar was trading at 1.0723 on Monday night. The oil price rose above $80 a barrel.
Company news
Blue Apron lost approximately 8.5 percent. The company wants to raise $ 70 million through the issue of new shares.
Twilio plans to lay off 17 percent of its workforce to cut costs and boost margins. The round of layoffs is likely to cost $100 to $135 million. Most costs will be booked in the first half of the year. The stock rose more than 2 percent.
Meta rose 3 percent after a report in the Financial Times that Facebook’s parent company is waiting to determine the budgets of several teams as it prepares for another round of layoffs.
Nikola won nearly 4 percent. The Wall Street Journal reported that the company has started producing hydrogen in factories. This should contribute to the development of a network of hydrogen as a zero-emission fuel for trucks.
Banking and payments conglomerate Fidelity National Information Services is preparing to break up. A large part of the merchant division consists of Worldpay, which bought FIS in 2019 for $ 43 billion. Since then, the company’s shares have lost more than half their value. The stock closed 12.5 percent in the red on Monday.
Bron: ABM Financial News
The editors of follow from Beursplein 5 ABM Financial News developments on the stock exchanges, and the Amsterdam stock exchange in particular, closely. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
