Morning Report | U.S. inflation may continue to soar in January; WuXi Biologics expects 2021 profit attributable to shareholders to increase more than 98% year-over-year via /r/wallstreetbets #stocks #wallstreetbets #investing


Morning Report | U.S. inflation may continue to soar in January; WuXi Biologics expects 2021 profit attributable to shareholders to increase more than 98% year-over-year

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U.S. inflation likely to continue to soar in January, expected to put pressure on the Fed to raise interest rates

Economic data is expected to show that U.S. inflationary pressures continued to heat up early this year, which could prompt the Federal Reserve to raise interest rates next month.

According to the median forecast of surveyed economists, the U.S. consumer price index (CPI) may rise 7.3% year-on-year in January, the largest year-on-year increase since the beginning of 1982. The CPI, which excludes volatile energy and food, is expected to rise 5.9 percent. This follows the release of the government’s latest non-farm payrolls report, which showed new momentum in the labor market and accelerating payroll growth, sparking market expectations that the Federal Reserve will be more aggressive in raising interest rates.

U.S. nonfarm payrolls add 467,000 in January, unexpectedly better than expected

Non-farm payrolls posted the largest increase in three months, with the previous values for November and December revised sharply higher by nearly 710,000. The unemployment rate rose slightly to 4%, still close to market expectations and the lowest since the epidemic of 3.9% set in December. The labor force participation rate was the highest since the epidemic. Hourly earnings rose the most in 20 months year-over-year. Expectations of a hawkish Fed rate hike increase.

Pre-US Credit Week: Investors overwhelmed by interest rate anxiety

As credit markets continue to show signs of stress, borrowers will likely continue to look for a stable window to issue new debt next week, while investors remain picky. The Wall Street syndicate sector is expected to issue about $20 billion in new investment-grade debt. Professionals believe the three issuers that chose not to move forward with deals Thursday will revisit them next week as companies deal with volatility swings.

The sell-off in U.S. bonds and related derivatives has been swift and massive so far this year – uncertainty over monetary policy remains high and risk premiums are likely to widen in the coming weeks. Credit market volatility accelerated last week on Thursday after a poor earnings report unnerved investors at Barclays, then peaked on Friday as a stronger-than-expected U.S. nonfarm payrolls report supported the case for a Fed rate hike.

U.S. stock market replay

The three major U.S. stock indices were mixed, with some technology stocks climbing sharply

U.S. stocks closed on Feb. 4, with the Nasdaq up 1.58%, the S&P 500 up 0.52% and the Dow down 0.06%.

U.S. large technology stocks generally strengthened, Amazon, Pinterest, Snapchat and other technology stocks climbed sharply, these companies have announced strong earnings reports.

Amazon Q4 net profit increased 98% year-on-year, AWS revenue increased 40% year-on-year

Meta Platforms repurchases nearly $20 billion of stock in Q4

Global new energy vehicle sales list in 2021: Tesla tops the list

Apple prioritizes production of iPhone 13 series, iPad delivery time up to 63 days

Ford plans to suspend or cut production at eight plants next week as chip supply tightens

Submitted February 07, 2022 at 08:39AM by abigaillv700
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