Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks stable after a major sell-off on Wednesday caused by the Fed.
Trader on the NYSE, January 3, 2022
Dow futures jumped higher, but Nasdaq futures fell on Thursday, the day after a massive sell-off caused by the Federal Reserve, the first regular decline in the trading session of the year on Wall Street. The minutes of the FRS meeting in December showed that central banks are preparing to end economic aid faster than previously thought.
2. The Fed is setting the wheels in motion to begin shrinking its huge balance sheet.
Federal Reserve Board Chairman Jerome Powell awaits hearing before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill on November 30, 2021 in Washington, DC.
Alex Wong | Getty Images
The Fed, at its December meeting, embarked on plans to cut the number of bonds on its balance sheet, with members saying the cut is likely to start sometime after the central bank starts raising interest rates. This According to the minutes of the meeting posted on Wednesday.
- The Fed is currently expected to start raising rates in March, which would mean that balance sheet contraction could begin before the summer.
- After the December meeting, the Fed announced plans for a more aggressive cut in bond purchases.
- On January 26-27, central bankers will hold their first meeting in the new year. With the spike in Covid cases due to the omicron option, traders will be keen to see if the Fed adjusts its plans.
3. Investors receive data on claims for unemployment benefits the day before the December employment report.
A job seeker leaves the airport job fair at Logan International Airport in Boston, Massachusetts, USA on December 7, 2021.
Brian Snyder | Reuters
Central bankers and investors received another read on the state of the labor market Thursday morning. Government perspective on The number of jobless claims for the week ending January 1 was slightly higher than expected at 207,000 initial claims. This is roughly the same as the previous week, which was close to its lowest level since 1969.
- The government plans to release employment data for December ahead of Friday’s call. Non-farm jobs are expected to rise by 422,000 and the unemployment rate is expected to fall to 4.1%.
- In the December ADP report on hiring in US companies, estimates more than doubled estimates, creating 807,000 new private sector jobs. The ADP data was not the best for predicting the government’s monthly report during the pandemic.
4. Walgreens Shares Rise On Profits; Bath & Beyond bed reversing
Walgreens in Oakland, California.
Yalonda M. James | The Chronicles of San Francisco | Hirst Newspapers via Getty Images
Dow Shares Walgreens Boots Alliance rose more than 4% in premarket after the pharmacy chain on Thursday morning reported higher-than-expected earnings and earnings for the first quarter of the fiscal year. Walgreens also raised its annual forecast as customers came to its stores for Covid vaccines and testing. The company’s shares closed at $ 54 on Wednesday, up 1%. The shares are up 30% in the past 12 months as of the end of Wednesday, bringing the market value to over $ 46.7 billion.
Shopping at the Bed Bath & Beyond Store
Credit: Bed Bath & Beyond
Shares in Bed Bath & Beyond beat premarket losses after the home furnishings retailer Thursday morning fell short of expectations for its fiscal third quarter. Bed Bath & Beyond, the so-called volatility meme fund, reported losses when analysts were looking for a breakeven result. Revenue was lower than estimated. The company’s CEO said the lack of inventory due to supply chain bottlenecks cost Bed Bath & Beyond about $ 100 million.
5. CDC supports Pfizer booster injections for children aged 12-15 due to omicron surges.
Centers for Disease Control and Prevention (CDC) headquarters in Atlanta, Georgia.
Tami Chappell | Reuters
Children between the ages of 12 and 15 are now eligible for Booster vaccines for the Covid virus from Pfizer and BioNTech, giving them an extra dose of protection when they return to school amid an unprecedented surge in U.S. infections. On Wednesday, the Centers for Disease Control and Prevention recommended boosters for young teens at least five months after taking the second dose. … The number of hospitalizations for children infected with Covid is on the rise in the United States as omicron is causing a wave of infection among the wider population. At least 7.8 million children have contracted Covid since the start of the pandemic, according to the American Academy of Pediatrics. More than 1,000 children have died from the virus, according to the CDC.
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