Daily Markets: As Companies Revisit 2022 Expectations, Investors

Today’s Big Picture

Asian markets closed down across the board today, the exception being Hong Kong’s Hang Seng which eked out a 0.05% gain. Taiwan’s TAIEX led the way down losing 1.75%, followed by South Korea’s KOSPI, which led a decline of 0.99%. China’s Shanghai Composite and Japan’s Nikkei fell 0.91% and 0.90%, respectively while India’s Sensex closed down 0.72%. By mid-day trading, European equity indices are down across the board and U.S. futures point to a weak open. 

Amid growing reports from companies that inflation, ongoing supply chain problems and issues tied to the omicron variant are weighing on their businesses, leading them to revisit 2022 expectations, investors are sifting through the year-to-date stock market pain in search of opportunities. In the recent past, the “buy the dip” view has prevailed, and very well could again. However, with the velocity of quarterly earnings reports picking up substantially next week and the week after, plus renewed geopolitical tension, questions over the fate of the Build Back Better Act and the Fed’s increasingly Hawkish stance, more than likely, the bout of market volatility experienced so far in January still has legs.

Data Download

Coronavirus

…