Posted on 01/24/2022 8:01:00 AM PST by lasereye
U.S. stocks extended declines from their worst week since the 2020 pandemic Monday ahead of a key series of big tech earnings reports and a crucial statement from the Federal Reserve.
Stocks extend declines amid rising geo-political tensions in Europe, the prospect of Fed rate hikes and slowing corporate earnings.
Reports say Biden is mulling troop deployment near the Ukraine border while ordering the families of diplomats in Kyiv to leave “due to the continued threat of Russian military action” in the region.
U.S. stocks slumped lower Monday, following on from a sell-off in major markets around the world, as investors looked ahead to a crucial week of headline risk including a key Fed meeting, scores of bluechip earnings and accelerating geopolitical tensions between Washington and Moscow.
European and Asia stocks suffered heavy losses Monday, with traders reluctant to snap-up beaten down tech stocks ahead of Wednesday's Fed meeting -- where is it expected to first of at least three rate hikes before the end of the year -- and the busy slate of corporate earnings starting after the bell today with a December quarter update from International Business Machines (IBM) - Get International Business Machines Corporation Report.
Collective S&P 500 profits for the three months ending in December are forecast to grow 23.7% from last year to $436.4 billion, according to Refinitiv data, with the energy and materials sector leading the gains.
The simmering tensions between the Russia and the Ukraine, where troops are reportedly amassing on the former Soviet satellite's border, is also having an effect on sentiment, particularly now that President Joe Biden is thought to be mulling intervention options as he orders family members of diplomats in Kyiv to leave “due to the continued threat of Russian military action” in the region.
Furthermore, with Goldman Sachs forecasting at least four rate hikes this year, the CME Group's FedWatch tool is pricing in a small chance of a Wednesday move by Chairman Jerome Powell, but sees the near-certainty of a 25 basis point increase on March 16.
U.S. stocks, which looked to claw back a small portion of last week's losses -- the worst since the 2020 pandemic -- in early pre-market trading are extending sharp declines as market volatility gauges, including the VIX (undefined) rise to the highest levels in nearly a year
The Dow Jones Industrial Average was marked 690 points lower at the start of trading while the S&P 500 slumped 105 points to take the broadest measure of U.S. stocks to within a whisker of correction territory, defined as a 10% decline from its recent peak.
The tech-focused Nasdaq Composite fell 360 points at the start of trading even as benchmark 10-year Treasury note yields eased to 1.717% in early New York dealing.
Bitcoin prices extended declines following another wild weekend for cryptocurrency traders that included reliability issues at a key blockchain network and further selling for the world's biggest digital coin.
Bitcoin prices were last seen trading 4.5% lower on the Monday session at $33,621.00 each on the CoinDesk exchange.
In overseas markets, a weaker-than-expected reading for economic activity this month, as well as the lingering hangover from U.S. stocks on Friday and the escalating tensions between Russia and the Ukraine has stocks on the back foot Monday, with the region-wide Stoxx 500 down 2.05% in mid-day Frankfurt trading.
Overnight in Asia, the MSCI ex-Japan benchmark was marked 1.2% lower heading into the final hours of trading while the Nikkei 225 in Tokyo clawed its way to a modest 0.24% gain to close at 27,588.27 points.
> Reports say Biden is mulling troop deployment near the Ukraine border... <
No. Biden’s handlers are mulling troop deployment near the Ukraine border. Biden himself is mulling what to have for desert today.
It would be funny...except that his handlers get literally everything wrong.
Lots of buying opportunities. I don’t know if this is a good strategy, but I’m waiting for the market to settle a bit. It’s been a downward ride for the past 2 weeks.
Either way, Biden owns this disaster too!
The market and the economy will be in a consistent slide until 2024. Good times are over.
There are buying opportunities since as the article notes, profits are actually up, and we are still not out of the covid slump, so there is still upside in the future.
But panic selling is what’s the name of the game today, and it won’t calm down until Mr. Omnipotence Powell has his little meeting Wednesday.
He should be a happy camper right about now, his earlier meeting pretty much tanked the market and may set it on a path for a world recession/depression. Boy, that oughta be good for the value of the dollar! Yessirree, them law school boys really know their economics!
“Either way, Biden owns this disaster too!”
Which really doesn’t matter, because he ‘thinks’ he’s doing just fine, and he’ll be dead before the History Books whitewash his ‘presidency.’
We The People are left holding the (empty) bag, once again.
Thanks, Socialist Democrats! *SPIT*
The easy trade in the market today is to short the Russia ETF, ERUS.
The Russian RTS Index was down 8.1% today and around 19% lower so far in 2022 and down 27% since Putin started threatening Ukraine late 2021.
#Bidenscrash
UPDATE 1-Halliburton profit rises as higher crude prices boost drilling demand
The second year of Biden’s RESIDENCY in the White House is not looking good.
As the saying goes: “The chickens are coming home to roost.”
The stock market has been pumped up with ‘stimulus money’ for two years and fundamentals for the companies are not stellar.
This stock market downturn could become very nasty.
And if he should tell his staff or Jill he crapped his pants again
Joe knows nether want to hear about it
Dow is currently down 1048 points (3.06%). Nasdaq down 602 points (4.36%). S&P down 168 points (3.82%).
aside from a few directly=involved stocks, Wall Street is not concerned when or if Russia does whatever in Ukraine
the larger problem from an investment POV is the larger problem of an illegitimate, corrupt, and incompetent WashDC administration that keeps messing around with the business, the economy, and jobs
I agree, lots of buying opportunities. However, we haven't seen the bottom of this correction. It will probably sink more, maybe a 20 percent dip, and it could last for several months. I pulled some money out of stocks into a cash position, and will buy the opportunities when things bottom out. The fear is, that the market could be down for a couple years while Biden is in office, hello recession where everything is worse.
And now in positive territory. Like clockwork whenever one of these threads are started on FR.
The thing is, where else are people going to put their money? The Stock Market is the only game in town.
And they keep propping up Biden’s economy.
Should have bought calls on Carvana yesterday.
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