Positive futures after Wall Street ushered in 2022 testing new records. Historical closing highs were tested, in particular, by the Dow Jones index and the S&P 500.
At approximately 1pm Italian time, futures on the Dow Jones rose by 0.33% to 36,574 points; futures on the Nasdaq advance by 0.37% to 16,547 points, while futures on the S&P are + 0.39% to 4,804 points.
To be precise, the Dow Jones jumped 246.76 points to 36,585.06 points yesterday, while the S&P 500 was up 0.64% to 4,796.56.
Even better was the Nasdaq Composite, which strengthened by 1.2% to 15,832.80, thanks to the buys involving Meta Platforms (Facebook), Amazon and Alphabet, the holding company to which Google belongs.
Tesla Rally, flown by more than + 13% after the data on the aftermath of cars, by the colossus of Elon Musk, for the fourth quarter and for the entire year 2021. The numbers were higher than what had been predicted by the consensus of the analysts. In premarket the stock marks a slight rise.
The undoubted protagonist of yesterday was Apple, which in the first session of the new year was confirmed as the first company in the world to reach – and exceed – $ 3 trillion in market capitalization, thanks to two winning cards: the boom in buyback operations. and the timeless success of its iPhones.
The stock climbed to $ 182.86, surpassing the $ 3 trillion market cap. At the end of the session, the prices slowed down with a rise equal to + 2.5% to $ 182.01: a value that however allowed the giant led by Tim Cook to oscillate around the coveted threshold just grabbed. The stock goes up in the premarket by approximately half a percentage point.
“The optimism about global economic growth and earnings momentum, which revived in mid-December, continued to grow on the first trading day of the year,” said Jim Paulsen, chief investment strategist at Leuthold Group, according to as reported by Cnbc – Those stocks most linked to economic growth did better (in yesterday’s session), also accompanied by the technology and communications sectors “.
Confident in the positive continuation of the trend of US equities Ryan Detrick of LPL Financial who, also on CNBC, commented that “the well-known Santa Claus rally ends on Tuesday (today). The good news is that it looks like these seven bullish days. (of the first trading week of the year) the shares will continue to rise. And it is when the stock goes down in these first days that we have to worry: therefore, in this situation, there is one less worry “.
In summary, as the saying goes, good morning starts in the morning, a good year for Wall Street would start from the first week of trading.
History itself confirms that the first days of January are full of buy: in 11 of the previous 13 years, the S&P 500 actually marked a positive trend in the first week of trading of the new year, collecting on average a gain of 1.6%.
2021 was a positive year for the US stock exchange, in particular for the S&P 500 index, which jumped on an annual basis by 26.89%, up for the third consecutive year. Third consecutive year of earnings also for the Dow Jones and the Nasdaq, which gained 18.73% and 21.39% respectively. The S&P 500 struck record highs 70 times, the second highest after 77 closes at record highs in 1995.
The best performances were reported by the stocks of companies active in the real estate and energy markets, with the related sub-indices flown by more than 40%. Financials and hi-tech stocks grossed gains of over 30%.
Investors are eagerly awaiting the publication of the US employment report, which will take place on Friday 7 January, at 2.30 pm Italian time: Bloomberg’s consensus expects an increase in new employees (by 400,000 units) and a drop in the unemployment rate for the month of December. The first indications on the US labor market will arrive tomorrow with the publication of the ADP survey: also tomorrow, Wednesday 5 January, the minutes of the December meeting of the Fed will be released.
Attention also to the US government bond market, where the rise in interest rates supported bank bonds yesterday. The prospects of a more hawkish Fed ready to raise fed funds rates up to three times in 2022, yesterday led US two-year bond rates to jump to 0.796%, to the highest values since March 2020, or from when the alarm of the Covid-19 pandemic rang out all over the world. The leap is remarkable, if we consider that the low of 2021 was reached around 0.105%.
Rates continue to rise, with 10-year rates rising to 1.6385% and 30-year rates hovering above the 2% threshold.