U.S. companies have successively announced outstanding financial reports, and Tesla’s strong financial reports have boosted the market by the previous Netflix (NFLX-US) earnings hit sentiment and eased investor concerns regarding a U.S. recession, with Tesla up more than 10 percent in early trading. As the debate over whether inflation has peaked intensifies, U.S. Treasuries have sold off once more, and investors are waiting for Federal Reserve (Fed) Chairman Powell to speak at the IMF meeting. U.S. stocks opened on Thursday (21st). The index is up.
Before the deadline,Dow Jones Industrial Averagerose nearly 300 points or nearly 0.82%,Nasdaq Composite Indexup 1.57%,S&P 500 Indexup 1.04%,Philadelphia SemiconductorThe index rose 1.26%.
U.S. Treasury yields rose, with investors including Bank of America and Nomura Asset Management saying the panic over inflation and rate hike bets had gone too far and the bond bear market had returned. According to the Beige Book released by the Fed yesterday, inflationary pressures remain strong. Meanwhile, stocks remained resilient to rising U.S. Treasury yields as the market focused on corporate earnings.
U.S. 10-year Treasury yields in real terms, or inflation-adjusted, turned positive for the first time since March 2020, as traders increased bets that the Fed will hike rates aggressively, however, levels failed to hold much long time.
Stock traders are not yet panicking regarding a rate hike, and while the U.S. earnings season is just getting started, corporate earnings so far have been encouraging, with 83 companies reporting results.S&P 500 IndexOf the constituent companies, 80% exceeded expectations.
Tesla shares surged in premarket thanks to stellar earnings, while American Airlines (AAL-US) shares were also higher in premarket trading following the company’s first-quarter adjusted loss fell short of market expectations, and as offices reopened and travel restrictions eased, corporate and international flights were resuming, giving an optimistic outlook.
Fed Chairman Jerome Powell and ECB President Christine Lagarde will discuss the global economy at a meeting of the International Monetary Fund (IMF) today, with investors looking for clues regarding central bankers’ views on interest rates and inflation, as well as Bank of England Governor Bailey (Andrew Bailey) will also speak.
While the debate over peaking inflation is intensifying, global central banks are unlikely to deviate from policy tightening, with New Zealand’s first-quarter inflation accelerating to 32 years as commodity shortages caused by the Russia-Ukraine war push up prices The highest level, confirming the central bank’s pursuit of an aggressive tightening cycle.
In terms of economic data, the U.S. Department of Labor released the latest unemployment benefits data on Thursday. The number of people receiving unemployment benefits last week was 184,000, a decrease of 2,000 from the previous revised 186,000. Although it was higher than the market expectation of 180,000, it was still It was near the lowest level since 1960, underscoring that the labor market is in short supply. In addition, the number of continuing unemployment benefits fell to 1.42 million, the lowest since 1970.
In energy news, international oil prices rose on Thursday following the European Union considered a possible ban on Russian oil imports, following days of market turmoil caused by a reduction in Libyan oil supplies ,Brent CrudeFutures rose 1.57% to $108.48 a barrel.
As of 21:00 on Thursday (21st) Taipei time:
Stocks in focus:
Tesla (TSLA-US) rose 10.67% to $1,081.50 a share in early trade
The latest financial report of Tesla, the leader in electric vehicles in the United States, performed well. In the last quarter, revenue increased by 81% year-on-year to US$18.76 billion, and earnings per share were reported at US$3.22, which were both better than market expectations of US$17.8 billion and US$2.26. GAAP net profit rose 658% to a record high of $3.32 billion. However, the company warned that production will be limited this year due to shortages of wafers and other components, although deliveries are expected to increase.
Colin (LRCX-US) rose 0.53% to $483.99 a share in early trade
Lam Research, a major semiconductor equipment maker, reported mixed first-quarter earnings. Although diluted earnings per share were reported at $8.36, slightly higher than the market’s estimate of $8.23, revenue was only $4.3 billion, slightly lower It was below consensus estimates of $4.32 billion. Colin’s R&D spending costs have also been increasing as supply chain disruptions impact, and the stock fell as much as 1.3% in premarket trading.
AT&T(T-US) rose in early trading 0.88%to $485.67 per share
US telecommunications giant AT&T announced its latest financial report, with adjusted earnings per share of $0.63 last quarter, $0.04 higher than market expectations, and revenue was also better than market estimates. The figures don’t include the results of now-spun off WarnerMedia, which reported last quarter’s earnings growth from its wireless business.
Today’s key economic data:
- Last week (as of 4/16) the number of people receiving unemployment benefits in the United States reported 184,000, expected 175,000, and the previous value of 186,000
- Last week (as of 4/9), the number of people receiving unemployment benefits in the United States reported 1.417 million, 1.45 million is expected, and the previous value was 1.475 million
- US April Philadelphia Fed manufacturing index reported 17.6, expected 20, the previous value of 27.4
Wall Street Analysis:
Edward Park, chief investment officer at Brooks Macdonald, said investors are awaiting Fed Powell’s speech amid signs inflation may be peaking. That’s why the 10-year U.S. Treasury yield moved slightly, but Powell’s rhetoric isn’t expected to change much following a string of Fed officials made the case for a big hike.
Hargreaves Lansdown analyst Sophie Lund-Yates said stock market sentiment was impacted by Netflix’s earnings report yesterday, which shocked the market with the loss of 200,000 subscribers, but Tesla’s strong earnings report should offset some legitimate tech panic. With so many macroeconomic and geopolitical risks present, markets are very sensitive to any rhetoric from the International Monetary Fund (IMF), and investors are increasingly wary of a recession coming as global growth forecasts are downgraded at a pace of interest rate hikes. more worried.
CMC Markets analyst Michael Hewson said: “We are looking forward to comments from Fed Chairman Powell, ECB President Christine Lagarde and Bank of England Governor Bailey.” The market expects the Fed to raise interest rates by 2 yards (50 basis points) at its next meeting, today and tomorrow There will be further rate hikes in two years. In addition, the market expects the central bank to shrink its balance sheet to curb high inflation, and the prospect of tightening monetary policy has been the main pressure on the stock market this year.
