The first week of February was the best week for the 3 major US Stock indexes in 2022, so far. The heavy-tech NASDAQ scored a 2.4% increase. The S&P 500 jumped by 1.5 % while Dow rose by 1% despite closing on red on Friday. It is an open secret that the volatile market streak will carry on even in the second week of February. As optimistic investors, we hope that the market will favor us. However, let us reason together and see what Wall Street has for us.
A good number of high-profile companies are scheduled to report their quarterly earnings this week, starting from today. However, our eyes are on “Bureau of Labour statistics” which is set to release recent economic data. On Thursday they will announce the “consumer price index” that was gathered from January’s data. The 2021 “7.3% annual rate of change that was stamped by 0.5 inflation increase in December” remains the largest single reading since 1981. As indicated by Nicholas Jasinski of marketwatch.com on Feb 6, 2022.
Another data that we can’t afford to ignore is the “Consumer Sentiment Survey” for February that will be released by the University of Michigan on Friday. In their recent report on 14th January, they reported that the consumer index plunged to 68.8 from their previous readings of 70.6 in December. Although, economists interviewed by Reuters had estimated the index would decline to 70.0, Due to 0.4 inflation increase in January compared to 0.5 of December.
Among the big boys that will be a subject to our focus by updating us with their quarterly earnings are 3 components of Dow Jones. Amgen (AMGN -0.86%) will open our week, today. Walt Disney will release their first-quarter report of the 2022 fiscal year, on Wednesday. A point worth noting is that their share has been 8% down due to slow growth as highlighted by their CEO, Bob Chapek. Also, Coca-Cola will report on Thursday.
One of the highlights of the NASDAQ will be Twiter’s stocks (TWTR) on Wednesday. TWTR has been rallying at 7.13%. Also, there is “Take-Two Interactive Software” (TTWO), which has been trading at 7.35%, and Peleton (PTON). Investors will be on the watch out to see if the NASDAQ will keep up with the last weak strong dominance of 2.4% rise. The winning streak will ensure that NASDAQ composite monthly readings won’t decline below 9.4% as was the case in January.
The S&P 500 recorded a 5.3% decline last month, which happened to be the worst-performing month since March 2020 when the pandemic was announced. However, if last week’s gains of 1.5% will be maintained and improved then it will be a positive month for the blue-chip average. On the other hand, the DJIA, narrowly survived a decline last week by registering a weekly rise of 1%. Our hope is that it won’t decline further to avoid a “double losing streaks months’’ in 2022.
When everything is said and done, shares of CVS Health (NYSE: CVS) will be one of the hottest stocks this week. They will announce their fourth-quarter earnings on Wednesday. Thanks to the rising demand for COVID-19 test kits and vaccines, which forms the bulk part of their revenue. The shares closed the Friday session at the market value of $108.49. However, according to Jesse Cohen of investing.com, the CVS stock has the potential of rising by 39% in the next 12 months; i.e., $108.49 to $150.84. per share.
