By Geoffrey Smith
GossipMantri.com – The flow of information about the pandemic has worsened, as President Joe Biden warned of 100,000 more deaths over the next month, while Tokyo had to fear canceling the Summer Olympics reprogrammed. PMIs in Europe have also fallen and fiscal deficits have increased. Stocks should open lower, with doubts over Intel’s outlook and IBM do not help. Here’s what you need to know about the financial markets on Friday, January 22nd.
1. News of the pandemic gets darker
News around the pandemic has taken a darker turn in much of the world. President Joe Biden has said the U.S. death toll from Covid-19 could exceed 500,000 next month, while Germany will exceed 50,000.
British Prime Minister Boris Johnson has warned that the current lockdown could last until the summer and that the Japanese government has been forced to deny reports that it will be forced to cancel the Summer Olympics, which already had been carried over once last year.
All of this weighed on global equities, pushing down 1.2% and down 0.4%, while Chinese indices also lost ground. The rebound and risk appetite that characterized the rest of the week has moderated. lost another 10% before recovering a little
2. Intel and IBM reports raise questions
Intel (NASDAQ 🙂 stock is poised to abandon most of the gains it made late in Thursday after an unauthorized early release of its quarterly results.
Both sales and profits exceeded expectations, but the market reacted coolly to plans to enter into more licensing deals with competitors such as Samsung (OTC 🙂 and Taiwan Semiconductor Manufacturing (NYSE :).
IBM (NYSE 🙂 stock is also on the verge of a rough patch as the market opens after pushing back – once again – its timeline for a sustainable return to revenue growth. The company’s acquisition of Red Hat fixed the short-term issue last year, but fourth-quarter revenue again missed estimates, suggesting its move to the cloud is still lagging behind.
3. Stocks ready to open lower
As of 6:40 a.m. ET, were down 275 points, or 0.9%, while they were down 0.8% and 0.6%.
The day’s earnings schedule is relatively light, with the Oil Services group the only significant release. On the data front, there will be data for December, which comes against the backdrop of another set of extremely strong numbers on Thursday for both and. , which had been under pressure in recent days, rebounded 6.9% on the news.
4. European PMIs fall, the UK economy struggles
According to purchasing managers’ indices published by IHS Markit, the country fell deeper into contraction at the start of the year.
The eurozone’s composite PMI fell to 47.5 from 49.1, amid restrictions on social life and economic activity that were successively tightened as new strains of the virus were discovered.
for December were also well below expectations, and November’s numbers were also revised down. The UK government set a new borrowing record in December as the pandemic drove up public spending bills. The fell to its lowest since June.
5 Oil slips on Covid concerns; EIA, data from Baker Hughes due
Crude oil prices have also fallen due to the same pandemic issues.
As of 6:40 a.m. ET, U.S. futures were down 2.5% to $ 51.83 per barrel, while the international benchmark was down 2.3% to $ 54.84 per barrel .
The U.S. government will release its weekly estimate at 10:30 a.m. ET, two days later than normal due to Monday’s vacation and Wednesday’s inauguration.
The drill report and net speculative futures positioning will close the week.