January 28, 2022, 3:25 pm EST
There are few spotlights when the stock market trying to deal with the rising rates environment.
First, Apple’s (AAPL) +6% positive earning report gave hope that the demand for iPhone and its cloud/music services are still there. Indeed, AAPL delivered expected results so it terminated the downward pressure.
Another highlight today will be on the credit card giants: Visa (V) +9% and Master Card (MA) +7%. Their technical patterns seem to suggest higher potential. Perhaps, improved COVID-19 conditions may be encouraging for coming travel and vacations that will make shopping and using credit cards more often. American Express (AXP) also made a strong comeback from the low recently. Thus, these credit card companies are worth attention.
In general, stock markets were struggling after last week’s drop due to inflation and rising rates. Although the US 2021 GDP of 5.9% is impressively strong, its 40-year-high inflation of 5% presents the threat for both Fed reserve and individuals.
We are less optimistic about the future of the US economy. However, it does not mean the stock market will go straight down. There are still investment opportunities along the way. Let’s keep alert and watch.