Wealth Daily 05 January 2022



WEALTH DAILY 2022-01-05
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Big divergence on Wall Street on Tue. A rout in tech shares, but the Dow Jones Industrials rose to an all-time high. The tech-heavy Nasdaq Composite retreated 1.33%, while the broader S&P 500 index fell 0.06%. Meanwhile, the Dow Jones Industrial Average gained 214.59 pts or 0.59%, to close at 36,799.65. The small

cap Russell 2000 dropped 0.16%.


Wall Street pundits are again pointing out growth stocks are behaving badly when Treaury yields rise. The ARK Innovation ETF (ARKK US, -4.43%), which focuses on hyper-growth names, tumbled on Tue.


On Tue, the 10-year Treasury did not go up much, but it held onto its very sharp jump from Mon. The yield on the 10-year Treasury note notched up 1.93 basis points (bps) to 1.6473%.


The Canadian 10-year government bond yield jumped 16 bps to 1.59%. The Canadian dollar rose 0.4% to C$1.2685 vs the greenback, or US$0.7883. Both were supported by a stronger crude oil price.


OPEC+ approved the 400,000 barrel-a-day production hike scheduled for Feb as expected. The front-month Brent and WTI futures closed up $1.02 at US$80.00/bbl and 91 cents at US$76.99/bbl respectively.


The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, rose 0.05% to 96.262.


The most actively traded US gold futures (Feb) contracts settled up $14.50, or 0.8%, at US$1,814.60/oz. March silver, which is the most actively traded silver futures, rose 24.6 cents, or 1.1%, to end at US$23.056/oz.


European equity markets finished higher on Tue. The UK FTSE gained 1.63%, France's CAC 40 rose 1.39%, while the German DAX advanced 0.82%.