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S&P at 3-month low as stocks get crushed

“You make most of your money in a bear market, you just don’t realize it at the time.” - Shelby Cullom Davis

 

 

HEADLINES

 

 

  • Dollar reverses losses, shows modest gain following 10-year TIPS auction
  • Fed kicks off debate on issuing its own digital currency with new white paper
  • Gold ends slightly lower a day after posting best daily advance since December
  • Crude prices edge lower, though supply concerns still dominant
  • S&P 500 Stumbles as Selling Into Strength Continues
  • Netflix Results Beat in Q4, but Weaker Guidance Spooks Investors
  • The US dollar has probably peaked for the year – Morgan Stanley

 

 

FOREX

 

 

Dollar reverses losses, shows modest gain following 10-year TIPS auction

 

 

The dollar fluctuated but remained range bound on Thursday as this week's upward trajectory of U.S. Treasury yields took a breather.

While the dollar initially edged lower following the release of disappointing economic data, the greenback reversed its losses after benchmark Treasury yields partially recovered in the wake of a 10-year TIPS auction which showed soft foreign demand for the notes.

Fed kicks off debate on issuing its own digital currency with new white paper

Creating an official digital version of the U.S. dollar could give Americans more, and speedier, payment options, but it would also present financial stability risks and privacy concerns, the U.S. Federal Reserve said in a long-awaited discussion paper released on Thursday.

 

 

COMMODITIES

 

 

Gold ends slightly lower a day after posting best daily advance since December

 

 

Gold futures ended with a slight loss on Thursday, a day after posting the best one-day advance since December and highest settlement in two months. Gold is finally finding its footing, largely due to the inflationary environment we find ourselves in, combined with the recent weakness in the U.S. dollar.

Crude prices edge lower, though supply concerns still dominant

Oil edged lower on Thursday, posting slim losses after several days of strength that pushed benchmarks to seven-year highs due to concerns about tight supply. Brent crude futures settled down 6 cents to $88.38 a barrel. The global benchmark rose to $89.17 on Wednesday, its highest level since October 2014; the benchmark is up 13% on the year so far.

 

 

STOCKS

 

 

S&P 500 Stumbles as Selling Into Strength Continues

 

 

The S&P 500 ended sharply lower Thursday, paced by a slump in consumer discretionary stocks, and fresh weakness in tech after the sector failed to hold onto intraday gains for the second day in a row. Consumer discretionary stocks were led lower by Amazon.com, Garmin, and VF Corporation as sentiment turned negative on risk assets late in the session.

Netflix Results Beat in Q4, but Weaker Guidance Spooks Investors

Netflix (NASDAQ:NFLX) reported on Thursday fourth quarter results that beat analysts' forecasts, but weaker guidance on subscriber growth flagged concerns about peaking demand following the streaming giant's recent price hike.

Netflix shares lost [over 20%] in after-hours trading following the report. The weaker guidance arrived as fourth quarter results beat on the top and bottom lines despite weaker-than-expected net adds during the quarter.

 

 

ANALYSIS

 

 

The US dollar has probably peaked for the year – Morgan Stanley

 

 

“The Fed has indicated it may be close to raising interest rates, and we think that the Fed starting an interest rate hiking cycle could be a signal that the dollar's rise is close to finished. The US dollar tends to rise in the months before lift-off, but fall in the months afterwards. This is a great example of buying the rumor and selling the fact. And if the market is right and the Fed hikes rates as soon as March, the peak of the US dollar for this cycle may not be too far away.”

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 has dropped back to the bottom of its rising channel for what would be a 5th time, where it could finally break. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

SOURCES:

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/the-us-dollar-has-probably-peaked-for-the-year-morgan-stanley-202201200839
https://www.marketwatch.com/story/gold-pulls-back-early-thursday-after-touching-2-month-high-11642684934?rss=1&siteid=rss
https://www.investing.com/news/commodities-news/oil-prices-ease-from-2014-high-supply-concerns-limit-losses-2743190
https://www.investing.com/news/stock-market-news/netflix-results-beat-in-q4-but-weaker-guidance-spooks-investors-2744201
https://www.investing.com/news/stock-market-news/sp-500-stumbles-as-selling-into-strength-continues-2744202
 

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