The United States announced that the CPI in January exceeded market expectations, once more writing a new high since 1982, driving the US 10-year bond yield to exceed 2% at one point, and the possibility of the Federal Reserve (Fed) raising interest rates sharply this year. Four (10th) opened low. At press time, the Dow Jones Industrial Average was down 91 points, or 0.25%, the Nasdaq Composite was down 0.68%, the S&P 500 was down 0.45% and the Philadelphia Semiconductor Index was down 0.8%.
The U.S. Labor Department released data on Thursday that the CPI in January was as high as 7.5%, higher than market expectations of 7.2%. The money market estimated that the Fed will raise interest rates by 1 percentage point (4 yards) before July, which is equivalent to the next 25 basis points (1 yard) of rate hikes at each of the 4 interest rate meetings.
After the report was released, the 10-year U.S. Treasury yield rose, briefly rising above 2 percent for the first time since 2019, while the rate-sensitive 2-year Treasury yield surged 10 basis points to 1.45 percent. Spot gold fell short-term 7 Dollar，DollarThe index rose more than 30 points in the short term to 95.76.
Meanwhile, West Texas crude rose to 90 per barrel DollarAbove, gold prices hovered near two-week highs, largely due to safe-haven demand from inflation and geopolitical tensions.
Among other stocks, software company Twilio (TWLO-US) rose 14% on premarket earnings, with toy maker Mattel (MAT-US) also rose nearly 10% following the opening due to the good results of the financial report announced recently.
Pepsi (PEP-US) The fourth-quarter revenue and profit performed well, but warned that rising transportation and packaging prices would bring cost pressures, and fell 0.5% before the deadline. The company also said it would raise its dividend and start a 10 billionDollarstock repurchase program.
Before the deadline at 22:00 on Thursday (10th) Taipei time:
- The Dow Jones Industrial Average fell 91.16 points, or 0.25%, to 35,676.90
- The Nasdaq Composite fell 98.10 points, or 0.68%, to end at 14,392.28
- The S&P 500 fell 23.31 points, or 0.51%, to end at 4,563.87
- Feihan fell 27.70 points or 0.76% to 3,626.67
- TSMC ADR rose 1.04% to 126.82 per share Dollar
- 10-year U.S. Treasury yield rose to 1.996%
- NY Light crude rose 0.09% to 89.74 a barrel Dollar
- Brent crude rose 0.02% to 91.57 a barrel Dollar
- Gold fell 0.49% to 1,827.60 an ounce Dollar
- DollarIndex rose to 95915
Stocks in focus:
Twitter (TWTR-US) rose 3.49% to 39.15 per share in early trade Dollar
Twitter (Twitter) announced its fiscal fourth-quarter 2021 financial results before the market. Although revenue, profit and user growth all fell short of analysts’ expectations, it announced a new $4 billion.DollarThe stock repurchase program restores investor confidence and encourages stock prices to rise.
Twitter’s fourth quarter (as of 12/31 last year) revenue reported 1.57 billionDollaradjusted earnings per share reported 0.33 Dollarboth slightly lower than analysts’ estimates of 1.58 billion and 0.35 Dollar, the number of profitable monthly active users (mDAU) was 217 million, also lower than the StreetAccount estimate of 218.6 million.The company expects revenue for the quarter to be between 1.17 billion and 1.27 billionDollarBetween, analysts expected 1.26 billionDollarregarding.
Disney (DIS-US) rose 7.65% to 158.50 per share in early trade Dollar
Disney’s 2022 fiscal first quarter earnings report is stellar, with revenue up 34% year-on-year to 21.82 billionDollarexcluding one-time items, earnings per share reached 1.06 Dollarboth far higher than analysts’ expectations of 20.91 billion and 0.63 Dollar。
The total number of paid subscriptions for Disney+ also contributed well, with an increase of 11.8 million to 129.8 million, beating the StreetAccount consensus estimate of 125.75 million. The amusement park, experience and product divisions also performed well, with revenue from 3.6 billion in the same period last year.DollarDoubled to 7.2 billionDollarthe operating profit has also turned into profit.
Uber(UBER-US) rose 5.37% to 42.35 per share in early trade Dollar
Uber shares soared on earnings, as fourth-quarter revenue surged 83% from a year earlier to $5.78 billion as ride-hailing demand picked upDollarbetter than Wall Street analysts’ estimates, with a net profit of 892 millionDollarEarnings per share reported 0.44 Dollarthe number of active users on the platform also reached 118 million, a record high, and the adjusted EBITDA of the delivery business reported 25 millionDollarturned a loss into a profit for the first time.
Key Economic Data:
- The annual growth rate of the US CPI in January reached 7.5%, a new high since 1982, and the previous value increased by 7%.
Wall Street Analysis:
Craig Erlam, an analyst at Oanda, said the January CPI data was the one that the market was looking forward to this week, as Fed officials have emphasized flexibility on interest rates this year, and a quarterly rate hike seems likely. As a result, it largely depends on whether inflation gets out of hand, forcing the Fed to take aggressive steps.
Kyle Rodda, an analyst at IG Markets, said that it is still unclear how many rate hikes there will be, and the Fed may not have a clue, which makes the market a little nervous, and any unexpected data will increase the tension and cause market volatility. .
Sonal Desai, chief fixed income investment at Franklin Templeton Fund, said the market is more optimistic regarding the second half of 2022, expecting inflation to drop significantly, but there are still many factors driving inflation, and the Fed has lagged behind the current situation.
Kim Forrest, chief investment officer at Bokeh Capital Partners, believes that inflation may ease as the U.S. government’s subsidy program is removed, and estimates that the Fed may only raise interest rates twice this year.
UBS Global Wealth Management UK chief investment officer Caroline Simmons said that if inflation data climbs faster than investors expect, yields may rise further, so the Fed will have to tighten policy faster, or raise interest rates more significantly, but the Fed It is unlikely that the target rate will be raised by 0.5 percentage points in March, and the short-term market is expected to remain volatile.
