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Wealth Daily 04 February 2022

WEALTH DAILY 2022-02-04
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Facebook-parent Meta Platforms (FB US, -26.39%) released underwhelming earnings after the bell on Wed. On Thur morning, traders slammed its shares, setting off wall of tech selling that dragged the major indexes lower. The Dow Jones Industrial Average lost 518.17 pts or 1.45% to close at 35,111.16. The broader S&P 500 index fell 2.44%. The tech-heavy Nasdaq Composite retreated 3.74%. The small cap Russell 2000 dropped 1.90%. 

The whole thing could happen in reverse today (Fri). Amazon (AMZN US, - 7.81%) shares fell with the rest of the market on Thur, but after the close, the company gave an earnings call that sent it shares up 14.24% in extended-hours trading. Amazon web services grew by 40%. The e-commerce giant said it will raise the annual fee for Prime in the US by $20 to US$139. 

The collapse of Facebook shares dragged down Snap (SNAP US, -23.6%) and Pinterest (PIN US, -10.32%) shares. However, like Amazon, Snap and Pinterest are rocketing higher in after-hours trade (+59.18% and +20.97% respectively). 

Government bond yields moved higher after central banks in the UK and the Eurozone signaled that they are going to step up their inflation-fighting efforts. The yield of the German 10-year bund yield moved up 11 basis points (bps) to a three-year high of 0.14%. The 10-year UK gilt rose 12 bps to 1.37%. 

US government bond yields followed European yields higher. The yield on the 10-year Treasury note notched up 5.55 bps to 1.8306%. 

The euro jumped to a three week high versus the US dollar on the hawkish central bank talk, rising 1.2% at US$1.1441.

 The most actively traded US gold futures (Apr) contract settled down $6.20, or 0.3%, at US$1,804.10/oz. March silver, which is the most actively traded silver futures, fell 33.2 cents, or 1.5%, to end at US$22.375/oz. 

The front-month Brent and WTI futures closed up $1.45 at US$90.92/bbl and $2.01 at US$90.27/bbl respectively. 

European equity markets finished lower on Thur. The UK FTSE lost 0.71%, France's CAC 40 fell 1.54%, while the German DAX retreated 1.57%.