Wealth Daily 14 April 2022




WEALTH DAILY 2022-04-14
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US Treasuries rose on Wed as traders pared bets on aggressive hikes by the Fed. The yield on the 10-year Treasury note slipped 2.26 basis points (bps) to 2.6987%. The yield on the 2-year slipped 5.73 bps to 2.3481%. Yields and bond prices trade in the opposite direction. 


Shares on Wall Street rallied on Wed, as corporates began reporting 1Q 2022 earnings. The Dow Jones Industrial Average gained 344.23 pts or 1.01% higher to close at 34,564.59. The S&P 500 index rose 1.12%. The tech-heavy Nasdaq Composite advanced 2.03%. The small-cap Russell 2000 gained 1.92%. 


Mega cap tech stocks were higher including Amazon (AMZN US, +3.15%), Microsoft (MSFT US, +1.97%), Alphabet (GOOGL US, +1.71%), Apple (AAPL US, +1.63%) and Meta Platforms (FB US, +0.40%). Chip stocks climbed with Nvidia (NVDA US) gaining 3.25%. 


JPMorgan Chase (JPM US, -3.22%) shares fell after giving its results, but shares of Fastenal (FAST US, +2.24%) and Delta Air Lines (DAL US, +6.21%) traded higher. JPM said that it added US$902m to its reserves for bad debt, as the odds of a recession were slightly higher because of rising inflation and the war in Ukraine. 


US Treasury yields fell as fixed-income traders digested the second day of hot inflation data. The yield on the 10-year Treasury note slipped 2.26 basis points (bps) to 2.6987%. The yield on the 2-year slipped 5.73 bps to 2.3481%. 


The US Labor Department’s producer price index (PPI), which measures the prices paid by wholesalers, increased 11.2% from a year ago, the most in a data series going back to Nov 2010. 


Oil prices rose even as the IEA cut its global demand growth estimates due to China's renewed lockdowns. The front-month Brent and WTI futures closed up $4.14 at US$108.78/bbl and $3.65 at US$104.25/bbl respectively. 


The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.42% to 99.875. 


During Tokyo trade Wed, the yen sank weakened to the 126 yen level against the US dollar, its weakest level since May 2002. 


The most actively traded US gold futures (Jun) contracts settled up $8.60, or 0.4%, at US$1,984.70/oz. May silver, which is the most actively traded silver futures, rose 29.5 cents, or 1.1%, to end at US$26.030/oz. 


European equity markets finished mixed on Wed. The UK FTSE gained 0.05%, France's CAC 40 rose 0.07%, while the German DAX retreated 0.34%. 


Tomorrow (April 15) is Good Friday. There would be no Wealth Daily.