Wall Street tries to rebound from lows with the 10-year bond hovering around 4%

Wall Street tries to rebound from lows with the 10-year bond hovering around 4%
Wall Street attempts a rebound from lows with the 10-year bond above 4%

The DOW-JONES rose 0.19% at the open to 29,191 points, while the S&P 500 advances 0.12%, at 3,651 points. The NASDAQ100 it falls 0.09% to 10,819 points.

During Tuesday’s session, the S&P 500 hit 3,623.29 to mark a new 2022 low and its bear market. The index trimmed losses after reaching that level, but still ended the day down 0.2% for its sixth straight daily decline.

Various technical indicators show the stock market may be oversold, but some on Wall Street are concerned that investors have not priced in a slowdown in earnings and the impact of Federal Reserve rate hikes. The S&P 500’s break below its previous low is a key indicator to some that stocks have yet to fall further.

“I think we haven’t reached the end of the road when it comes to assessing the outcome of the recession.” “We really need to get to very cheap valuations in equities, and we’re not there yet,” Anastasia Amoroso, chief investment strategist at iCapital, told CNBC.

In the fixed income markets, the return on the reference ten-year bond has risen during the morning to 4.005%, which is the first time since 2010 that it exceeds the key level of 4%before relaxing to 3.9%. In the two-year bond, the yield is cut 6 basis points to 4.248%.

“The fact that US yields have risen so much is attracting inflows into the dollar,” says Nanette Hechler-Fayd’herbe, chief investment officer of international wealth management at Credit Suisse Group. “As long as monetary and fiscal policy around the world doesn’t come to strengthen their own currencies, we should anticipate a very strong dollar.” Today the euro falls another 0.20% against the dollar until the exchange rate is established at 0.9575 dollars for each community currency.

Investors, meanwhile, are also keeping an eye on sterling turmoil. Today the Bank of England has announced that it will suspend the planned start of its sale of gilts next week and will start temporarily buying long-term bonds to calm the market chaos unleashed by the new government’s so-called ‘mini-budget’.

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In a statement on Wednesday, the central bank said it was monitoring the “significant appreciation” of UK and global assets in recent days, which has hit long-term UK government debt particularly hard. “In line with its objective of financial stability, the Bank of England is prepared to restore market functioning and reduce any risk of contagion from credit conditions for UK households and businesses.”

Sterling briefly soared on the news, before trading 0.5% lower against the dollar at $1.0647.

Biogen soars 50% thanks to an Alzheimer’s drug

In the business field, biogene shoots up more than 50% at the opening after, together with its Japanese partner Eisai, it has announced that its experimental drug against Alzheimer’s drastically slowed the progression of the disease in a study, reducing cognitive and functional deterioration by 27 %.

Thor Industries It is up 3.5% after the RV maker reported better-than-expected earnings and revenue in its latest quarter. Thor saw particular strength in its motorized recreational vehicle segment, with a 24.5% gain from a year earlier.

Manzana registers falls of 3.5% in the New York morning. As published by the Bloomberg agency, the company with the bitten apple is backing down on its plans to increase the production of its new line of iPhone 14. The movement comes after the expected increase in demand did not materialize.

The spotlight also points to the financial sector, with banks hit by $1.8 billion in fines related to investigations into how companies failed to monitor employees’ use of unauthorized messaging apps. The SEC has announced that 16 entities, including Goldman Sachs, Citi Group, Bank of America Y Morgan Stanley, they will pay 1,100 million dollars in fines. On the other hand, the Commodity Futures Trading Commission announced fines against 11 banks totaling $710 million.

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Mind Medicine it collapses more than 50% in the opening. The biopharmaceutical company has announced a public offering of common shares in which RBC Capital Markets and Cantor will act as joint managers of the offering. According to information from Bloomberg, the shares will be offered at $4.25 each.

The actions of blackberry they fall 2% despite the company’s second-quarter revenue beating Wall Street expectations. Revenue for the quarter decreased 4% to $168 million. Revenue from its Internet of Things (IoT) unit grew 28% year-on-year to $51 million, while cybersecurity sales totaled $111 million.

Meanwhile, oil prices are attempting a timid rebound after fears of recession and the strength of the dollar have been offset by production cuts in the US due to the passage of Hurricane Ian. The barrel of West Texas rose 0.61% to 79.34 dollars, while the oil futures Benchmark Brent in Europe rose 0.55% to $85.52 a barrel.

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