Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street looks lower, Nasdaq down 2%
NYSE Trader, Jan. 24, 2022.
U.S. stock futures fell on Tuesday, with the Nasdaq down 2%, a day after the market saw a stunning turnaround. The Nasdaq fell as much as 4.9% on Monday before a surprising recovery to end the session up 0.6%. However, the tech-heavy index remained in correction, down 13.7% from November’s record close. The Dow Jones Industrial Average was down 1,115 points, or 3.25%, at Monday’s low, before closing up 0.3%. The average price of the 30 stocks was 6.6% below the record closing price earlier this month. The S&P 500 also closed up 0.3% after falling nearly 4% at one point on Monday, signaling correction territory and down more than 10% from its record close at the start of the new year.
2. The Fed may signal a March rate hike at the end of the meeting
U.S. Federal Reserve Chairman Jerome Powell speaks during a renomination hearing for the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill in Washington, U.S., January 11, 2022.
Graeme Jennings | Reuters
Bond yields were higher on Tuesday as the Federal Reserve begins its two-day January meeting. The Fed’s policy statement and Chairman Jerome Powell’s news conference Wednesday afternoon are expected to reflect the central bank’s willingness to take the necessary steps to fight inflation. Against the backdrop of a sharp correction in stocks, Fed officials are expected to say they are prepared to raise interest rates from near zero as early as March after the tapering of bond purchases ends. There have been four rate hikes this year.
3. Pfizer and BioNTech launch Covid vaccine trial for omicron
A vaccinator draws a Pfizer-BioNTech coronavirus disease (COVID-19) pediatric vaccine in Lansdale, Pennsylvania, U.S., on December 5, 2021.
Hannah Bell Reuters
Pfizer and BioNTech on Tuesday launched a clinical study to evaluate the safety and efficacy of a vaccine against a variant of Covid omicron. “While current research and real-world data suggest that boosters continue to provide high levels of omicron protection against serious illness and hospitalization, we recognize the need to prepare in case this protection diminishes over time, with the potential for Help address omicron and there will be new variants in the future,” Kathryn Jensen, head of vaccine development at Pfizer, said in a statement.
4. Johnson & Johnson expects at least $3 billion in sales of new crown vaccines this year
Johnson & Johnson logo
SOPA Images | Light Rocket | Getty Images
Before the market opens on Tuesday, four Dow stocks will report quarterly results: 3M, American Express, Verizon and Johnson & Johnson. Johnson & Johnson, which makes one of three coronavirus vaccines approved for emergency use in the U.S., posted slightly higher-than-expected adjusted fourth-quarter earnings but missed revenue. However, the U.S. drugmaker has higher guidance for full-year 2022 sales and adjusted EPS. Johnson & Johnson expects its Covid vaccine to generate $3 billion to $3.5 billion in sales this year. Shares were down 1.8% in premarket trading.
5. IBM shares surge after quarterly earnings, revenue beat IBM
Smith Collection/Gado | Archive Photo | Getty Images
Dow stock Microsoft is set to report quarterly earnings after the close. IBM, also a component of the Dow, reported better-than-expected fourth-quarter adjusted earnings and revenue Monday night. The stock rose nearly 2% in premarket trading on Tuesday, giving up most of its 6% gain in after-hours trading as the tech giant declined to provide forward-looking earnings guidance. Intel and Apple report quarterly results on Wednesday and Thursday, respectively.
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