Major US stocks are falling and oil is rising slightly
Major US stocks are falling and oil is rising slightly :The United States of America published its Federal Reserve report’s minutes, showing an intention to end the QE program soon.
Evest follows all developments in the trading markets in the following report.
Topics:
Results of the Federal Reserve Board meeting’ minutes in September
Wall Street indices in the Green Zone
Wholesale declines in US stocks
The Energy Information Management forecasts on oil prices
Results of the Federal Reserve Board meeting’ minutes in September
The minutes of the September meeting of the Federal Reserve System (FRS), released on Wednesday,
showed that leaders of the United States Central Bank are ready to begin ending the QE program in the coming months and complete it by mid-2022.
Market participants viewed this as a positive signal, indicating that the Fed sees significant progress in the US economy’s recovery from the effects of the pandemic,
according to MarketWatch.
According to the protocol, Federal Reserve leaders discussed a rough plan that would reduce the volume of asset buybacks by $15 billion per month,
particularly US Treasury bonds – by $10 billion and mortgage bonds by $5 billion.
“Some Fed leaders have said they prefer to reduce ransom more quickly” – the record said.
The US Labor Department data, released on October 13,
showed that country’s consumer prices index (CPI) in September rose by 5.4% compared to the same month last year.
Thus, inflation accelerated from 5.3% the previous month and was the highest in 13 years.
Analysts predicted it would remain at the August level at an average of 5.3%, according to Trading Economics.
Wall Street indices in the Green Zone
The Dow Jones industrial index ended trading on Wednesday at the level of the previous session, and the Standard & Poor’s and Nasdaq composite indices rose by the end of the session.
The Dow Jones industrial index remained virtually unchanged on Wednesday and closed at 34377.81 points.
Standard & Poor’s 500 rose by 13.15 points (0.3%) to 4363.8. The Nasdaq Composite Index rose by 105.71 points (0.73%) to 14571.64.
US Treasury yields declined on Wednesday, affecting banks’ stocks, but supporting technology companies’ stocks.
The interest rate on the US 10-year Treasury bonds fell to 1.541% from 1.575%.
Wholesale declines in US stocks
JPMorgan Chase’s stock price declined by 2.6% on the basis of Wednesday’s trading after the bank’s third-quarter report was published.
JPMorgan’s net income in the fourth quarter rose by 24%, better than market expectations.
The Bank’s growth was due in particular to the cancellation of a potential loan loss provision of $2.1 billion,
but the Bank’s quarterly revenue rose by only 1.3%,worse than analysts’ expectations.
Citigroup, Bank of America and Goldman Sachs Group shares fell by 0.5%, 0.9% and 0.1%, respectively.
The US investment firm BlackRock’s stock rose by 3.8%.
It is the largest company in the world in terms of managed assets, with a net profit of 23% in the third quarter of 2021 and revenue of 16%.
Earnings excluding non-recurring factors were $10.95 per stock, exceeding analysts’ average of $9.57 per stock.
Delta Airlines, which also issued its quarterly earnings on Wednesday, declined by 5.8%.
The airline posted a net profit for the first time since the COVID-19 pandemic,
but warned that higher fuel prices would prevent it from continuing to make a profit in the fourth quarter.
Apple’s stock fell by 0.4% following a Bloomberg report that the company could reduce its plan to produce iPhone 13 smartphones in 2021 by 10 million units,
due to a shortage of semiconductor components.
Qualcomm’s stock rose by 1.7%.
The day before, the company announced that its board of directors had agreed to launch a new $10 billion stock buyback program.
Oil prices rise slightly
Oil prices resumed growth on Thursday after a slight decline the previous day.
The energy crisis in Europe and Asia continues to exert pressure on the market,
contributing to increased oil demand with a moderate increase in production by OPEC + countries.
The US oil reserve rose by 5.123 million barrels last week from 951 thousand barrels a week ago,
according to the American Petroleum Institute (API).
Official data from the US Energy Administration will be released later in the day.
The experts interviewed by Standard & Poor’s Global Platts expected the country’s oil reserves to decline last week by an average of 500 thousand barrels,
and gasoline – 400 thousand barrels, distillation products – 800 thousand barrels.
The cost of Brent crude futures for December on the London Stock Exchange ICE Futures on Thursday is $83.76 per barrel,
$0.58 (0.7%) higher than the closing price of the previous session.
As a result of Wednesday’s trading, these futures fell $0.24 (0.3%) – to $83.18 per barrel.
The price of West Texas Intermediate crude futures for November in electronic trading on the New York Mercantile Exchange (NMX) is $80.97 per barrel,
$0.53 (0.66%) higher than the final value of the previous session.
The day before, these futures fell by $0.2 (0.3%) – to $80.44 per barrel.While API data indicate the largest weekly jump in U.S. oil reserves since March,
Citigroup analysts believe reserves will fall sharply by the end of the year as businesses shift from using significantly higher gas prices to oil.
In their view, this could lead to a price jump of $90 per barrel.
On Wednesday, the Energy Information Administration (EIA) of the United States Department of Energy,
raised its forecast on the average price of Brent crude for the current year to $81 per barrel from $71 per barrel.
The Energy Information Administration also raised its forecast on the average price of Brent and West Texas intermediate crude for 2022.