Despite Friday's astounding US Jobs Report, the EU and US futures have turned red.
FTSE MIB (-1.1%), DAX (-0.01%), NASDAQ (-0.14%), S&P 500(-0.20%), at writing.
In the United States, nonfarm employment in the United States fell by 301,000, while estimates had expected an increase of 207,000. The previous revised figure showed an increase of 776,000.
Nonfarm workers increased by 467,000 in January, three times more than the consensus expected. The previous figure, equal to 210,000, was revised to 510,000. Not only was the January report much better than expected, but the characteristics of December also changed.
The 'hawk' Klaas Knot, president of the Dutch central bank and member of the board of the ECB, expects a rate hike in the fourth quarter of this year.
German industrial production fell in December, with supply chain bottlenecks affecting Europe’s largest economy at the end of 2021. The Federal Statistical Office data showed that production fell by 0.3% monthly after a revised upward increase of 0.3% in November.
We are witnessing a considerable rise in the Euro (EUR/USD) due to the interest rate hike, which should arrive in the third quarter of 2022. A strong euro is not suitable for exports, and this will put German industry in serious difficulty, with the industrial production in decline. Therefore, new lows in the 14.500 area are conceivably in sight for the Dax.
Hot Stocks And Instruments
Amazon (NASDAQ:AMZN): The company founded by Jeff Bezos closed the fourth quarter of 2021 with a profit almost doubled to 14.32 billion dollars and with revenues of 137.41 billion dollars (+ 9%), broadly in line with analysts’ forecasts. For the first four months of 2022, the online shopping giant expects revenues between 112 and 117 billion dollars, against approximately 121 billion projected by analysts.
Snap Inc (NYSE:SNAP): The Snapchat app company ended the quarter with 22 cents in profit, more than double what the consensus expected.
Natural Gas: Average temperatures are coming next week in the US, which is causing prices to drop rapidly.
Conclusion
Regarding Amazon, I find myself contrary to other analysts. I was not too fond of the quarterly report with the revenues that did not surprise. Current prices reflect its fair value.
Regarding Snap, earnings surprised. But the most critical data is daily active users, which have grown by 20%. $50 is within reach.
Concerning natural gas, as predicted in previous articles, the prices could return to decline, the movement can continue, given our weather data. The intense cold should no longer appear.