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Wealth Daily 14 January 2022

WEALTH DAILY 2022-01-14
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Shares on Wall Street fell on Thur, as the tech rebound abruptly ended. The Dow Jones Industrial Average lost 176.70 pts, or 0.49%, to close at 36,113.62. The S&P 500 index fell 1.42%. The small cap Russell 2000 dropped 0.76%.

The tech-heavy Nasdaq Composite tanked 2.51%, led by losses in Microsoft (MSFT US, -4.23%) and Tesla (TSLA US, -6.75%).

On Wed, we saw a hot consumer inflation number. On Thur, the US Labor Department reported super-hot wholesale price inflation. The producer price index (PPI) rose 9.7% yoy in Dec, although the number was a tad lower than expectations for a 9.8% gain.

High inflation is the top story in financial media, but the bond market seems to be seeing it another way. The yield on the 10-year Treasury note slipped 3.87 basis points (bps) to 1.7041% on Thur. The 10-year Treasury yield has been trending lower all week.

Bucking the downward trend in equity markets was Delta Air Lines (DAL US +2.12%). Shares rose on Thur after it said it expects to return to profit in 2Q.

Similarly, home-builder KB Home (KBH US, +16.52%) shares surged on Thur, after reporting 4Q EPS and orders that beat analyst estimates.

The most actively traded US gold futures (Feb) contract settled down $5.90, or 0.3%, at US$1,821.40/oz. March silver, which is the most actively traded silver futures, fell 4.5 cents, or 0.2%, to end at US$23.162/oz.

The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.13% to 94.790.

The front-month Brent and WTI futures closed down 20 cents at US$84.47/bbl and 52 cents at US$82.12/bbl respectively.

European equity markets finished mixed on Thur. The UK FTSE gained 0.16%, France's CAC 40 fell 0.50%, while the German DAX advanced 0.13%.

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