Below are some comments by Mr. Kunal Sawhney, CEO, Kalkine Group on US markets as of today.
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Comments On The US Markets
US stocks are expected to start the week with a mixed tone on Tuesday, continuing with last week’s trends. US markets remained closed on Monday due to Martin Luther King Jr. Day.
On Tuesday, the 10-year Treasury bond yields hit a two-year high of 1.834% from 1.771% on Friday. It means investors might continue to rotate stocks appropriate for a low-interest rate regime. It also means technology stocks would continue to waver – a trend continuing since the start of 2022.
However, the quarterly results of several major financial companies due on Tuesday are expected to draw investors’ attention. Goldman Sachs, Charles Schwab, PNC Financial, BNY Mellon, and Truist Financial, among others, will declare their results for the quarter ended December 2021.
Hence, financial stocks are likely to see traction in intraday trading. Technology stocks have been vacillating over the past two weeks amid rising government bond yields. The trend is likely to continue this week. Also, energy prices hit a seven-year high on Tuesday that may impact the stocks. WTI crude jumped 1.6% to US$85.18 a barrel, while Brent oil futures rose 1.34% to US$87.63.
However, markets will have more events to look out for in the week. For instance, the NAHB/Wells Fargo Housing Market Index for January will be released on Tuesday. The government is also likely to report the housing starts for December, and another report on home sales is due on Thursday.
Investors would also be likely to keep an eye on IPOs due on Tuesday. Japanese beauty retailer Yoshitsu Co., Ltd, the Kuala Lumpur-based Technology & Telecommunication Acquisition Corp, and Florida-based pharmaceutical company Jupiter Neurosciences Inc were expected to go public today.