Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

ON SEMICONDUCTOR CORPORATION

(ON)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Stocks stumble, yields jump on rates outlook; oil rallies

01/14/2022 | 04:41pm EST
FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

* U.S., European and Asian stocks down

* Profitability warning from JPMorgan casts pall

* Falls follow signals from U.S. Fed policymakers

* Oil rallies; U.S. dollar steady after 3-day decline

NEW YORK, Jan 14 (Reuters) - Global stock markets stumbled again on Friday and U.S. Treasury yields climbed as cautious investors worried about how imminent U.S. interest rate hikes would affect the economy.

A warning from the largest U.S. bank JPMorgan Chase & Co that its profitability may fall below a medium-term target cast another pall on Wall Street.

By early evening, MSCI's gauge of stocks across the globe had shed 0.36%. The pan-European STOXX 600 index closed down 1.01% and had its worst week since Nov. 26, weighed in part by declines in technology stocks.

In the United States, a spate of bargain hunting toward the end of the day helped stocks to narrow losses. The Dow Jones Industrial Average fell 0.56%, the S&P 500 ended flat, and the Nasdaq Composite flipped into the black, rising 0.59%.

"We are now entering a period where the Federal Reserve will engage in a never-before-seen experiment: raising interest rates off zero and reducing the size of its balance sheet in the same year," said Nicholas Colas, co-founder of DataTrek Research.

"The market is still left wondering what results will come from their decisions," Colas said.

In line with expectations of rising rates, benchmark 10-year Treasury yields jumped to 1.7859%, rebounding toward a two-year high of 1.8080% struck earlier this week. Two-year Treasury yields hit a high of 0.9730%, a level last seen in February last 2020.

European bond yields also rose in choppy trade as investors focused on monetary policy tightening by central banks, though sharp falls in Germany's benchmark 10-year yield earlier this week led it to notch its biggest weekly fall in 10 weeks.

Meanwhile, in Asia, the five-year Japanese government bond yield jumped to its highest since January 2016 and the yen rose after a Reuters report that Bank of Japan policymakers are debating how soon they can start an eventual interest rate hike.

Such a move could come even before inflation hits the bank's 2% target, sources said.

The dollar, which has been slugged by a three-day selling spree as investors bet that expectations of rate rises are already priced into the currency, finally steadied on Friday.

The dollar index, which measures the greenback against a basket of six currencies, bounced 0.34% to 95.167, pulling away further from a two-month low hit this week.

A bounce in the dollar dragged on the euro, which lost 0.34% to 1.14135.

Sterling also slipped 0.22% to 1.36780, taking a breather after this week's rally that pushed it to a 2-1/2-month high.

GDP data on Friday showed that Britain's economy grew faster than expected in November and its output finally surpassed its level before the country went into its first COVID-19 lockdown.

Asian shares had fallen overnight after Fed Governor Lael Brainard on Thursday became the most senior central banker to indicate the Fed will hike rates in March.

Other Fed officials have shown their willingness to raise rates, after data this week showed U.S. consumer prices surged 7% year-on-year.

Bucking the weakness in equity markets, oil futures rose again, on course for a fourth weekly gain, boosted by supply constraints.

Brent crude futures rallied 1.9% to a two-and-a-half month high of $86.44 a barrel. U.S. West Texas Intermediate crude jumped 2.6% to $84.28. Both Brent and U.S. futures entered overbought territory for the first time since late October.

Rising bond yields weighed on non-yielding gold, with spot gold down 0.31% at $1,816.53 per ounce.

"It’s clearly the impact of monetary policy tightening that’s being felt in markets here," said Guillaume Paillat, multi-asset portfolio manager at Aviva Investors.

Paillat, who is expecting at least four Fed rate hikes this year, said it was "pretty much a done deal" that the tightening cycle would start in March.

"What matters over the coming days is going to be more about earnings," he added. "There’s still a bit of room for earnings to surprise to the upside."

(Reporting by Koh Gui Qing and Elizabeth Howcroft; editing by Jonathan Oatis and David Gregorio)


ę Reuters 2022
All news about ON SEMICONDUCTOR CORPORATION
03:01aJSW Energy Plans Annual Capex of Over $1.3 Billion in Next 10 Years
MT
03:01aClearvise to Buy 90-MW Klettwitz Nord Solar Park in Germany; Shares Drop 5%
MT
03:00aGym Group CFO To Join Wickes Group At Same Role In July
MT
03:00aNorway's Summa raises $2.6 billion in latest 'impact' fund
RE
02:58aECB'S LAGARDE : Inflation drivers will ease gradually in 2022
RE
02:58aCGN Mining Misses Q4 Output Target; Shares Fall 4%
MT
02:57aGreenX Metals Generates New Copper Targets at Artic Rift Project in Greenland
MT
02:53aBankinter's Q4 profit falls on one-offs, interest income steadies
RE
02:53aEvergrande's offshore shareholders say to seriously consider enforcement actions
RE
02:52aAsymchem Laboratories Appoints Co-CEOs; Amends Titles of Other Senior Management Execs
MT
More news
Analyst Recommendations on ON SEMICONDUCTOR CORPORATION
More recommendations
Financials (USD)
Sales 2021 6 685 M - -
Net income 2021 930 M - -
Net Debt 2021 1 618 M - -
P/E ratio 2021 27,8x
Yield 2021 -
Capitalization 25 423 M 25 423 M -
EV / Sales 2021 4,04x
EV / Sales 2022 3,69x
Nbr of Employees 32 750
Free-Float -
Chart ON SEMICONDUCTOR CORPORATION
Duration : Period :
ON Semiconductor Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ON SEMICONDUCTOR CORPORATION
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Last Close Price 59,01 $
Average target price 64,86 $
Spread / Average Target 9,91%
EPS Revisions
Managers and Directors
Hassane El-Khoury President, Chief Executive Officer & Director
Sam Thad Trent Chief Financial Officer, Treasurer & Executive VP
Alan Campbell Chairman
Johannes M. C. Stork Chief Technology Officer & Senior Vice President
Wei-Chung Wang Executive VP-Global Manufacturing & Operations
Sector and Competitors
1st jan.Capi. (M$)
ON SEMICONDUCTOR CORPORATION-13.12%25 423
NVIDIA CORPORATION-14.77%626 675
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED6.34%613 504
BROADCOM INC.-15.24%232 849
INTEL CORPORATION4.12%218 073
QUALCOMM, INC.-5.69%193 166