The S&P 500 was unable to decide which way to go on Tuesday, as Treasury yields rebounded before the inflation report later this week. JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc, and Wells Fargo & Co will report earnings on Friday.
Goldman Sachs and Morgan Stanley will report on Monday. Big US banks are getting ready for a tough 2023 before they report their fourth-quarter earnings.
The S&P 500 went up 0.47%, the Dow Jones Industrial Average went up 0.33%, or 112 points, and the Nasdaq Composite went up 0.68%. Communications services led the market, with Netflix, Meta Platforms, and Warner Bros Discovery leading the way. After Bank of America put Warner Bros. Discovery on its list of best ideas, the stock went up by more than 8%.
Not much happening on the dollar front
Tuesday was a slow day on the forex front because there wasn’t much going on in the macroeconomic world. Investors are waiting for more information from central banks. Jerome Powell, the head of the US Federal Reserve, and his counterparts from Canada and Japan were on the wires however, they haven’t delivered anything new about monetary policies.
The US dollar went up for most of the first half of the day, but it ended with a mixed performance because Wall Street was able to make up for its losses. Investors don’t want to take too many risks before the US inflation data comes out next Thursday.
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EUR/USD stays around 1.0740, and GBP/USD is down on the day at 1.2160. Commodity-linked currencies also got weaker against the dollar. AUD/USD was trading around 0.6890 and USD/CAD was around 1.3420. Lastly, USD/JPY trades at around 132.20, which is just a little bit higher.
Volatility takes a break on commodities as well
Gold price is going up, but bears are watching the Consumer Price Index in the United States as well. Gold futures for February delivery was able to hold above $1,881 for the day closing 0.2% in the green. Silver futures for March however, are in the red for the second time this week with a 0.62% decline.
Crude prices went up for the second day in a row on Tuesday. Commodity traders also waited for US oil inventory data and a much-anticipated government report on inflation due later in the week.
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West Texas Intermediate, or WTI, finished the day up 49 cents, or 0.7%, at $75.12 per barrel, after reaching a session high of $75.92. UK Brent crude ended the day up 45 cents, or 0.6%, at $80.10. During the day, it reached a high of $81.37.
Both US and UK crude benchmarks fell more than 8% last week, which was their biggest weekly drop since December 2nd. This was because of China’s coronavirus crisis and fears of a global recession.
Beijing has fully reopened its borders to international trade as of the weekend. This was done to get rid of the last traces of the strict Covid rules, which have shaped much of China’s social policy over the past three years.
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