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Dow Futures Sink as Goldman Sachs' Earnings Miss, Yields Rise

Goldman Sachs' fourth-quarter earnings fell short of analyst estimates

Managing Editor
Jan 18, 2022 at 9:23 AM
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After a dismal week of losses, Wall Street is looking at more of the same today. Futures on the Dow Jones Industrial Average (DJI)S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all poised for a sharp move below breakeven, as bond yields spike and corporate reports drain any upbeat investor sentiment that was still around to start 2022.

At last check, the 10-year Treasury yield was at 1.83%, its highest level since January 2020. As for corporate reports, blue-chip bank giant Goldman Sachs (GS) is swimming in red ink after fourth-quarter earnings whiffed on expectations. Elsewhere, oil prices are soaring in the wake of the attack on Abu Dhabi last weekend, with February-dated crude futures last seen up 2% at $85.50 per barrel. 

Continue reading for more on today's market, including:  

  • Founder and CEO Bernie Schaeffer on the best bank stock to own this year.
  • Tilray stock dominated the cannabis space last week.
  • Plus, activist investor pressures Kohl's; another retail stock downgraded; and big news from the video game sector.   

Stock Futures Chart Jan 18

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Friday, and 968,563 put contracts. The single-session equity put/call ratio rose to 0.64, and the 21-day moving average remained at 0.49.
  2. Kohl's Corporation (NYSE:KSSstock is is unable to buck the broad market action, last seen down 0.4% in electronic trading. This comes even amid reports that activist investor Macellum Advisors is pushing to add to its 5% stake value in the retailer. KSS is up 4.8% year-over-year heading into today.
  3. Another retail stock in focus is Gap Inc (NYSE:GPS), down 6.5% ahead of the open, after Morgan Stanley issued a downgrade to "underweight" from "equal-weight." The analyst in coverage sees margins for retailers like Gap to soon return to pre-pandemic levels. Heading into today, GPS has shed 44% in the last nine months.
  4. The shares of Activision Blizzard Inc (NASDAQ:ATVI) were 36% higher in electronic trading, but have since been halted, after the Wall Street Journal reported that Microsoft (MSFT) will be buying the video game maker for a cash deal reportedly valued at $68.7 billion. ATVI was off by 27% in the last 12 months before today.
  5. The Empire state manufacturing and National Association of Homebuilders (NAHB) indexes are due out today.
buzz jan 18

Asian Markets Mixed Amid Data Deluge

Asian markets were mostly lower on Tuesday, after the Bank of Japan (BoJ) raised near-term inflation expectations, despite leaving its short-term interest rate the same. Meanwhile, China's President Xi Jinping warned rapid interest rate hikes could negatively impact economic recovery across the globe. Investors are also still digesting economic data out of the country, which showed better-than-expected growth from October to December. As a result, China’s Shanghai Composite added 0.8%. Elsewhere, South Korea’s Kospi was 0.9% lower, Hong Kong’s Hang Seng shed 0.4%, and Japan’s Nikkei fell 0.3%.

European markets are also lower, as investors continue to monitor the U.S. Federal Reserve, as well as earnings season. They are eyeing today’s Economic and Financial Affairs Council (ECOFIN) meeting as well, and digesting January’s better-than-expected ZEW economic sentiment survey for Germany. Still, the German DAX is pacing the laggards with a 1% drop, while France’s CAC 40 is down 0.8%, and London’s FTSE 100 is 0.5% lower.


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