News from the financial community on January 12, investors increasingly believe that Thursday's CPI report will show inflation cooling and send a signal to the Federal Reserve that the previous interest rate hike has had the expected impact, U.S. stocks closed higher, the Dow rose nearly 270 points, The Nasdaq closed up 1.76%, the S&P 500 index rose 1.28%, both hitting a new high in January; technology stocks rose, Amazon rose nearly 6% to hit the biggest gain in two months, retail huddle stock 3B Home rose nearly 69% is the highest since listing, the stock price doubled in three days, and Alibaba rose for seven consecutive days to hit the highest in half a year.
At the close, the Dow was up 268.15 points, or 0.80%, at 33,972.25, the S&P 500 was up 49.19 points, or 1.26%, at 3,968.44 and the Nasdaq Composite was up 189.04 points, or 1.76%, at 10,931.67.
February gold futures rose $2.40 to settle at $1,878.90 an ounce, the highest close for the most active contract since May 6. Silver fell 18 cents, or 0.8%, to $23.481 an ounce in March. Palladium for March delivery rose $3.80, or 0.2 percent, to $1,781.10 an ounce; Platinum for April delivery fell $4.20, or 0.4 percent, to $1,084.30 an ounce. March copper settled at $4.166 a pound, up 9 cents, or 2.2 percent, the highest price since June.
February futures for West Texas Intermediate crude on the New York Mercantile Exchange rose $2.29, or nearly 3.1 percent, to settle at $77.41 a barrel. According to Dow Jones market data, this marks the fifth consecutive session of gains for the index and the highest front-month closing price since December 30. ICE Brent crude futures for March rose $2.57, or 3.2%, to $82.67 a barrel, the highest level since Dec. 30. February gasoline rose 4.70 percent to $2.4345 a gallon, and February heating oil rose 1 percent to $3.2179 a gallon, up 2.6 percent. Natural gas rose 0.9% to $3,671/MMBtu in February, down 6.9% in the previous session.
Popular Chinese concept stocks closed mixed on Wednesday, with the Nasdaq Golden Dragon Index closing up 0.23%. Fangduoduo rose by more than 17%, Qutoutiao rose by more than 9%, Secoo rose by more than 7%, Tuya Smart and iQiyi rose by more than 6%, Happy Auto, Fogcore Technology, Mushroom Street, Kuke Music, Lanting Jisei rose by more than 5%, Danai Technology, 51Talk, Futu Holdings, Atour Group, and 36Kr rose by more than 4%. Zhiwen Group rose more than 3%, Baidu, Monster Charging, Xiaoying Technology, NIO, Suntech Institution, Sohu rose more than 2%, and Tiger Securities, Netease, Niu Electric and Ninth City rose more than 1%.
Jiuzhou Pharmacy, Gaotu fell by more than 8%, Xinoxygen fell by more than 7%, Dingdong Grocery Shopping, Dada Group, Renren Company, Hong En fell by more than 5%, Manbang and Huya fell by more than 4%, and Waterdrop Company, Canaan Technology, Litchi, and Ctrip fell by more than 3%. Tencent Music, Douyu, Basket Technology, Kingsoft Cloud, Daily Youxian, Bilibili, and AMTD fell by more than 2%, Yixian E-commerce, Pinduoduo, NetEase Youdao, New Oriental fell by more than 1%, and JD.com fell by nearly 1%.
U.S. mortgage rates fell to 6.42 percent, the first drop in three weeks
U.S. mortgage rates retreated for the first time in three weeks, modestly boosting refinancing activity. The contract rate for 30-year fixed-rate mortgages fell 16 basis points to 6.42% in the week ending Jan. 6, according to data released Wednesday by the Mortgage Bankers Association (MBA). That helped drive a 5.1% increase in refinancing applications for the week. Despite last week's rise, the refinancing index is still near its lowest level in two decades. Mortgage rates more than doubled last year as the Federal Reserve raised borrowing costs to curb inflation, dampening activity in the housing market.
Former Fed officials warn that the Fed risks going too far in raising interest rates
Richard Fisher, a former Dallas Fed president and senior adviser at Barclays, said the Fed may go too far in raising rates because it is embarrassed by its previous miscalculation of inflation. "The Fed doesn't want to make two mistakes in a row, and it's embarrassing that their statement that 'inflation is transitory' has been proven wrong," Fisher said. So the last thing they want is to make a second mistake, which is to stop raising rates too early. Will this take them too far in raising rates? I think so. ”
Top economists: The Fed is expected to raise interest rates to a peak of around 5.5%.
Wenxin Du, Randall Kroszner and Raghuram Rajan, professors at the University of Chicago Booth School of Business, said Tuesday that the federal funds rate could peak at around 5.5 percent and will remain at that level for longer to stem the spiral in prices ranging from food to fuel. Kroszner, a former Fed governor, said: "I do think the Fed will keep interest rates unchanged and will remain so for some time. Inflation will fall by 200 basis points, perhaps 300 basis points, this year, but the Fed will keep interest rates at 5.5%. Economists say raising rates could tip the U.S. into a mild recession by the end of the year. Du warned that any recession would be short-lived, while Rajan argued that the Fed would be very cautious so as not to be blamed as a recession mastermind.
Asset management giant Jupiter: recession risks intensify, 10-year Treasury yield may fall to 2%
British asset management giant Jupiter Asset Management said the Fed could cut interest rates this year as the risk of recession became more real, causing U.S. Treasury yields to fall sharply. Ariel Bezalel, a London-based fund manager, said a global recession triggered by the Fed's most aggressive rate hike since the 80s could cause the yield on the 10-year Treasury note to fall to 2 percent as investors flock to safe-haven assets. "There is enough data for the Fed to pause rate hikes anytime soon," he said. My concern is that if the Fed doesn't back down soon, they are likely to lead to a severe recession. ”
"Dr. Doom" Roubini: Gold will return an average of 10% per year over the next five years
Nouriel Roubini, known as "Dr. Doom" for accurately predicting the 2008 financial crisis, believes that the world is facing 10 "super threats", including geopolitics and debt crises, which will make investors flock to gold, causing the price of gold to rise to $3,000 an ounce by 2028. "Over the next few years, I expect gold's returns to move from single digits to double digits, with an average annual return of around 10% over the next five years and an overall return of 60% by 2028," he said. In Roubini's view, inflation, stagflation and the trend of "de-dollarization" will be the main drivers of gold prices to the upside. In addition, Roubini believes that a "stagflationary depression" may come in 2023, which will cause both stocks and bonds to fall. Roubini also said the Fed would need to raise interest rates to at least 6 percent, but that doing so was unlikely because it would lead to a "severe" recession and a collapse of the debt. He suggested that the Fed adjust or pause its tightening cycle.
Apple Maps has undergone major updates to enhance business page information
Apple on Wednesday announced a major update to Apple Maps, adding new photos, buttons and promotions to the app on the business page. The move will encourage Apple Maps users to not just seek directions by providing new information and photos about business locations. This is the latest example of the rivalry between Apple Maps and Google Maps, the latter of which has powerful tools that allow businesses to edit and add information to their profiles.
For users, the business page that appears when you search for a location in the app will provide more interactive features. For example, merchants on Apple Maps can now display a "Showcase," or a module with a large image, with the ability to highlight deals or limited-time promotions.
Ubisoft cancels three games and cuts targets, citing "deteriorating macroeconomic conditions"
On Wednesday, the company canceled three unannounced games and lowered its full-year financial targets, blaming "deteriorating macroeconomic conditions" that plagued the video game industry. The French game publisher said it expects net bookings of 725 million euros ($779.4 million) for 2022, down from its previous target of 830 million euros.
Ubisoft said it expects a 10% drop in net bookings for the full year 2022. The company had forecast a 10% increase in net bookings. Ubisoft CEO Yves Guillermot said in a statement that he was disappointed with the recent performance.
BlackRock plans to cut about 500 jobs worldwide
BlackRock plans to cut about 500 jobs, or 2.5 percent of its global workforce, after the world's largest asset manager suffered last year when its stock and bond markets tumbled. CEO Larry Fink and President Rob Kapito told employees that "uncertainty makes it more important than ever to get ahead of the curve and focus on serving our customers."
This is BlackRock's first round of layoffs since 2019, and the number of employees will still be about 5% higher than a year ago. The company is scheduled to report fourth-quarter results on Friday, and it had about 19,900 employees worldwide by the end of September.
Microsoft said it would give U.S. employees unlimited vacation time
Microsoft said it would adjust its leave policy to give U.S. employees unlimited vacation time to match the system LinkedIn already in place. According to a company spokesperson, the changes began Jan. 16 and only apply to full-time employees in the United States. To accommodate a more flexible work schedule, the company has been considering this change for several years.
Such a policy has been adopted by senior bankers at companies such as Netflix and Goldman Sachs, but it can be challenging when managers set expectations that favor little or no vacation. The spokesperson said Microsoft has considered possible flaws in the system and that the company wants to ensure that employees get enough time off.
The cryptocurrency crisis intensified, and Bitcoin tycoon Barry Hilbert made countless enemies
Digital currency group founder Barry Hilbert is far from the most colorful looking executive in the crypto space. In an industry rife with billionaire managers, die-hard evangelists and outright scammers, the 46-year-old CEO looks and behaves like the middle manager of a regional bank. His quiet demeanor — and his relatively long tenure in the bitcoin industry — has benefited him tremendously, securing funding from companies like SoftBank and building a vast network of businesses that touches nearly every corner of the cryptocurrency.
That influence puts him at the center of a storm against crypto lenders like DCG's Genesis Global Capital — non-performing loans, deposit runs and growing distrust could plunge the loosely regulated industry into a version of the 2008 Wall Street credit crisis.
Pimco: The U.S. bond market has a lot to do this year A mild recession is a plus
Fixed income giant Pimco said in a new report that with a recession looming this year, "there are good reasons to invest in bonds". Pimco, which has about $1.7 trillion in assets under management, said that while a recession could pose a challenge to riskier assets such as equities, "we still see a strong case to support investing in bonds with yields rising again in 2022 and the economy likely to decline again this year."
Pimco's baseline forecast is a "mild recession and slower inflation" for the U.S. economy, which it sees as an environment in which bonds "offer both attractive returns and mitigate downside risks." The Fed "may need to raise the nominal federal funds rate to around 5 percent, which has been largely priced in by the market and reflected in the Fed's own forecasts." ”
Apple: The App Store has accumulated more than $320 billion in revenue, and the total number of paid subscriptions has exceeded 900 million
According to Apple's official website, since the launch of the App Store in 2008, developers have accumulated more than $320 billion in revenue by selling digital products and services on this platform, and the revenue in 2022 will reach a new high. In addition, in 2022, the number of users visiting the App Store reached a new high. The total number of paid subscriptions to the App Store exceeds 900 million.
A U.S. judge ruled that the Apple Watch infringed Masimo's pulse oximeter patent
A U.S. judge ruled that Apple's import and sale of the Apple Watch with a pulse oximeter-based feature infringed a pulse oximeter patent by Masimo Corp. Masimo said the U.S. International Trade Commission (USITC) will now consider whether to impose an import ban on these Apple Watches.
After the expiration of the protection period of the best-selling drug, AbbVie does not expect profits to decline in 2024
Speaking at the J.P. Morgan Healthcare conference, AbbVie's CEO said profits are not expected to decline in 2024, the first full year that its best-selling anti-inflammatory drug, Humira, faces competition from cheaper alternatives in the United States. AbbVie CEO Rick Gonzalez said more than 90 percent of insured Americans will still have access to Humira's drug plan through 2023. This means that most people who take the drug will not be forced to switch to cheaper alternatives. The company also has a portfolio of drugs for oncology, neurology and even eye health problems that support AbbVie's long-term earnings and growth prospects. Gonzalez said, "We are still well positioned to absorb the impact. ”
U.S. senators angrily criticized the price increase of Moderna vaccine: now is not the time for corporate greed
U.S. Senator Bernie Sanders recently sent a letter to the well-known pharmaceutical company Moderna, asking the company to abandon its plan to increase the price of new crown vaccines in the United States, on the grounds that the price increase may make millions of Americans unable to afford vaccines. At Monday's J.P. Morgan healthcare conference, Moderna CEO Stephane Bancel revealed that the company is considering pricing its coronavirus vaccine in the U.S. at between $110 and $130 per dose, when sales of the vaccine will shift from government contract distribution to commercial distribution.
Pfizer: It is actively promoting the local production of Paxlovid with Huahai Pharmaceutical to ensure sufficient supply in the Chinese market
Regarding Paxlovid's exit in the 2022 national medical insurance catalogue negotiations, Pfizer responded on January 11 that although Paxlovid was not included in the national medical insurance catalog, Pfizer will continue to cooperate with the government and other relevant partners to ensure sufficient supply of Paxlovid in the Chinese market to continue to meet the new crown treatment needs of Chinese patients. In terms of localized production, Pfizer said that the company and Huahai Pharmaceutical are actively promoting the work of Paxlovid real estate projects to ensure the sufficient supply of Paxlovid in the Chinese market and continue to meet the new crown treatment needs of Chinese patients.
![Tesla closed down 3.5 percent, its lowest closing since Oct. 21.[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)