February 2022 Stock Market Summary
- cashtonsaunders
- Mar 1, 2022
- 3 min read
Stock Market Summary
On The Bond Desk:
Month over Month (M/M) change in the US 10 Year Bond Yield ended January at 1.784%, closed out the month of February at 1.882%, but traded above the 2.0% level during the period in question.
Crude Oil:
WTI crude oil futures jumped month over month (M/M) during the period from 88.15/barrel, to $95.95/ up $7.80.
On the Earnings Calendar:
Two months into the fourth-quarter earnings season showed a mixed earnings picture from major banks, and large high-growth technology companies.
In M&A News:
Chipmaker Intel bought rival Tower Semiconductor for $6.0 Billion.
What About The Asian And European Markets?
Monthly change in Major Asian markets: Japan (Nikkei 225) down 1.76%, Shanghai added 3.0%%, Hong Kong (Hang Seng) up 4.79%.
Monthly change in Major European markets: German (DAX) down 6.5%, France CAC 40 down 4.86%, London FTSE 100 down 0.08%.
Key Factors Influencing The Markets During February
After a severe market correction in January, in response to the Federal Reserves' new hawkish stance, brought on due to rising inflationary pressure, and a rising interest rate environment, the markets appeared to have stabilized in early February. The following curated list of actions drove markets during the month.
Big banks continued to report mixed 4th Quarter Earnings results. JPMorgan, CitiBank reported better than expected results, but guidance was a bit short of expectations, sending the shares lower. Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs beat expectation outperformed helped to stabilize the markets.
Major technology companies reported mixed earnings. Microsoft, Google, and Amazon reported strong quarterly earnings and shared rallied higher, adding a positive catalyst to the markets. Technology bellwether, Facebook beat revenues, but missed earnings expectation, and guided lower. The company cited increased spending on the Metaverse, rising competition from Tic Tok. Shares plummeted.
The 2022 Winter Olympics began in China on February 2, 2022.
Drug giant Pfizer reported Revenues in line with expectations, but Earnings fell well short of analyst estimates. February 8.
Chipotle handily beat expectations of earnings and revenue, and guidance was higher. CEO stated the company has pricing power. February 8.
Rideshare company, Lyft beat earnings, revenue, despite a decline in rideshare numbers due to Omicron. Shares rose. February 8.
Disney reported strong earnings and revenue results. There was strong growth from the Disney Parks. February 9.
Rideshare company, Uber beats earnings and revenue expectations, but shares fell. February 9.
Shares of Twitter missed both earnings and revenue estimated but announced a share buyback program. Shares rose. February 10.
January Consumer Price Index (CPI) came in hotter than expected YoY 7.5% vs 6% core (Ex food and energy). Futures fell on that news, but moderated after the opening bell. The 10 Year Bond Yield also touched the 2% level intraday. Feb. 10.
Chipmaker, Intel announced it was buying Tower Semiconductor for $6.0 Billion. Feb.15.
Stocks rallied today after it was reported that Russia was withdrawing troops it had built on the borders of Ukraine. Feb 15.
January Producer Price Index (PPI) rose 1.0% vs 0.5% estimated, and 9.7% YoY. Feb 15.
Geopolitical events took center stage today, as a Russian attack on Ukraine appears imminent. Feb. 16.
The US and its allies have initiated the first round of sanctions on Russia, after that country took control of two disputed areas in Ukraine, and declared them as independent territories. Feb.20.
President Putin authorized a full-fledged invasion of Ukraine on the early morning of Thursday, February 24, attacking from land, sea, and the air.
Market Close Volume Traded And Advance Decline Ratio
Markets lost ground during the month of February. The Dow lost 3.68%, Nasdaq lost 3.43%, and the S&P was down 3.14%.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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