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The Zacks Analyst Blog Highlights: Tesla and Intel
Zacks Equity Research
6 min read

In This Article:

For Immediate Release

Chicago, IL – January 27, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla TSLA and Intel INTC.

Here are highlights from Wednesday’s Analyst Blog:

Bear Country: Tesla, Intel Beat on Q4 Earnings but Sell Off

Wednesday afternoon, in its statement following the latest Federal Open Market Committee (FOMC) meeting, the Fed kept interest rates unchanged at 0.00-0.25%. This comes as no surprise, as the final installments of the taper program, buying fewer and fewer Treasury bonds and mortgage securities, is scheduled to end in March. In a separate note, the Fed also plans to reduce its $9 trillion balance sheet, but not until after interest rate moves have begun.

This is all as expected on Wall Street: markets have been busy over the past few weeks pricing in no fewer than four interest rate hikes in 2022, roughly one every other FOMC meeting this year. Even still, stocks rolled off session highs not 20 minutes past the Fed statement release. And markets continued to creep lower during Fed Chair Jay Powell’s press conference which followed the FOMC statements, as the 10-year Treasury yield nudged first over 1.8%, pushing toward 1.86% by the time Powell was finished taking questions.

Substantively, there wasn’t anything different emphasized this time around: inflation continues “well above 2%,” with residual supply/demand imbalances from the ongoing pandemic largely responsible; the Unemployment Rate has fallen sharply, with labor demand historically strong, and participation “subdued” by an aging population. Powell said interest rate policy will require “humility” and being “nimble.”

Powell also did not add any reassurances regarding whether this now-near-certain March rate hike will constitute a quarter-point or half-point rise, citing the FOMC will make that decision during its March meeting. In short, he left the door open for increased hawkishness, and this would no doubt be contingent on inflation reads from economic prints over the next six weeks until the next meeting. There is also no suggestion from the Fed Chair that “only” four rate hikes may be in the works for 2022.

Regardless of whether the Fed should or should not be more hawkish in its monetary policy going forward, it might be said Powell let slip through his fingers a chance to assure market participants that there will be no reckless advancement of leaping rate hikes and balance-sheet draining. Powell has proven over time to be attuned to economic concerns but perhaps slow to react; in the interest of quashing this narrative about his Fed leadership, it appears he is fine with investors believing he will move higher and faster than earlier anticipated. Markets went from the green to the red by the time of the closing bell.

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