Dow Rebounds 100 Points on the Back of Strong Earnings, Rising for the First Time in 4 Days

Tiger Newspress2022-01-19

Stocks gained Wednesday to steady after a broad sell-off a day earlier, as investors nervously eyed soaring bond yields and mixed earnings results from some major index components.

The S&P 500, Dow and Nasdaq rose. The Nasdaq Composite had closed out Tuesday's session with a drop of 2.6%, bringing it to its lowest level since October. The index also came within striking distance of a correction, typically defined as a closing level at least 10% below a recent record high.

Meanwhile, Bank of America (BAC) shares gained in early trading after the company topped estimates for quarterly loan growth and posted a jump in profits in its key consumer banking business. Procter & Gamble (PG) also rose after the company exceeded expectations in its latest results and raised its sales guidance for the full year, with higher prices from the company helping boost results.

Treasury yields built on recent gains, and the benchmark 10-year yield neared 1.9% for its highest level since January 2020. Commodity prices also advanced further, and U.S. West Texas intermediate crude oil futures rose above $86 per barrel.

According to many strategists, the recent volatility across risk assets has largely reflected investors' ongoing reassessment of highly valued asset prices, with interest rate hikes and an attenuation of liquidity out of the Federal Reserve looming.

Though Fed officials are in a blackout period before their next meeting next week, policymakers over the past several weeks have telegraphed that they are gearing up to raise interest rates and eventually draw down the nearly $9 trillion on the Fed's balance sheet as the economic recovery continues and inflation soars.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • superpopo
    2022-01-20
    superpopo
    So fake
  • WaiSiong81
    2022-01-20
    WaiSiong81
    👍
  • PearlynCSY
    2022-01-20
    PearlynCSY
    The Dow Jones Industrial Average fell 339.82 points, near 1% to 35,028.65. And the Nasdaq falls over 1% Wednesday to close in correction territory, off 10% from its November record. Fed has lost total credibility after claiming month after month inflation is transitory. Now the US economy is getting hit from 3 corners: 40-year high inflation, Fed tapering and interest rate hikes. Crazy Biden is also taking on both China and Russia, hoping to divert attention for his own failure in nursing the economy and the Covid-19 pandemic
  • andrew123
    2022-01-20
    andrew123
    Looks like 2022 is the beginning  of bear mkt. Nothing but-very news
  • Huathuat23
    2022-01-20
    Huathuat23
    When will the market be green again…..
  • lappiloco
    2022-01-20
    lappiloco
    Seeing red
Leave a comment
23