U.S. electric car maker Tesla reported a better-than-expected profit last quarter, jumping nearly 5 percent in early trading, driving theNasdaqThe index opened higher. In addition, the European Central Bank announced its first interest rate hike in 11 years, which exceeded previous expectations. Market investors still focused on the next corporate earnings report. The major US stock indexes opened mixed on Thursday (21st).
Before the deadline,Dow Jones Industrial Averagefell more than 50 points or 0.2%,Nasdaq Composite Indexrose nearly 0.3%,S&P 500 Indexrose nearly 0.1%,Philadelphia SemiconductorThe index rose nearly 0.3 percent.
The European Central Bank today started raising interest rates for the first time in 11 years, and exceeded expectations by raising interest rates by two yards (50 basis points), trying to control the hot inflation and ending the 8-year negative interest rate decision.After the announcementEURShort-term higher, but then turned down to erase previous gains.
The data showed that the ECB deposit mechanism rate rose from -0.50% to 0%, the main refinancing rate rose from 0% to 0.50%, and the marginal lending rate rose from 0.25% to 0.75%. In addition, the European Central Bank has also launched an anti-financial differentiation tool, the Transmission Protection Instrument (TPI), to avoid a sharp widening of interest rate spreads among member countries and a serious blow to the most indebted countries. In addition, the pace of asset purchases under the ECB’s Pandemic Emergency Purchase Program (PEPP) will continue at least until the end of 2024.
Morgan Stanley cross-asset strategist Andrew Sheets said the outlook for European markets would be “very, very good” if the ECB’s new tool succeeds in leveling the playing field for heavily indebted countries and Russia maintains gas exports. If the reverse is true, European markets will be hit by economic growth and sovereign risks.
Risk sentiment remains fragile, with investors debating whether stocks have bottomed following a sell-off sparked by conflict in Russia this year, slowing growth in China and the prospect of a U.S. recession. Meanwhile, Russia has resumed exports of natural gas from its Nord Stream 1 to Europe, easing some of the tension in Europe’s race to store fuel ahead of winter.
In terms of data, the number of people receiving unemployment benefits in the United States climbed once more to 251,000 last week, higher than the market expectation of 240,000. At the same time, the Philadelphia Fed manufacturing index in the United States plummeted to -12.3 in July, and the market originally expected the previous value – 3.3 to – 2.5. Both figures echo the recession risks reflected in the recent slowdown in hiring by tech companies.
In terms of individual stocks, Snap (SNAP-US) will report its latest quarterly earnings following the bell on Thursday, following the company issued a warning that quarterly revenue was expected to fall short of company expectations due to deteriorating economic conditions.
As of 21:00 on Thursday (21st) Taipei time:
Stocks in focus:
Ford (F-US) rose 0.63% to $12.81 a share in early trade
Ford Motor announced on Thursday a series of new developments in the supply of automotive batteries and related raw materials worldwide. It will achieve an annual production capacity of 60GWh of batteries by adding lithium iron phosphate battery solutions and locking in the supply of related raw materials, ensuring its 60 GWh battery capacity in 2023. The annual production capacity target of 10,000 electric vehicles.
Ford said that from next year, the Mustang Mach-E in the North American market will add a lithium iron phosphate battery version, and the F-150Lightning pure electric pickup truck in the North American market will also be equipped with a lithium iron phosphate battery version from 2024.300750-CN) supply.
Alcoa (AA-US) rose 2% to $45.96 a share in early trade
Shares in Alcoa, the world’s third-largest alumina producer, rose more than 6 percent on Wednesday following the world’s third-largest alumina producer reported strong second-quarter earnings and called its first-half results “strong.” Alcoa’s earnings report showed that second-quarter revenue grew to $3.6 billion from $2.8 billion last year, beating analysts’ estimates of $3.5 billion in a FactSet survey, with adjusted earnings per share of $2.67, beating analysts once more Expected $2.31. At the same time, Alcoa also announced a $500 million share repurchase program.
Looking ahead, Alcoa expects aluminum shipments this year to remain between 2.5 million and 2.6 million tons as previously expected, while alumina production this year is lowered by 0.6 million tons, with shipments ranging between 13.6 million and 13.8 million tons. . In addition, bauxite shipments also declined to between 44 million metric tons and 45 million metric tons, a change of 2 million metric tons from the previous forecast, due to continued disruption in the Atlantic bauxite market and lower refinery demand in the first half of 2022. .
Tesla (TSLA-US) rose 4.78% to $778 a share in early trade
As the negative effects of the shutdown of the Shanghai plant emerged, Tesla announced following the market on Wednesday that its second-quarter profit was the first quarterly contraction in more than two years, but it was still better than market expectations. The company reiterated its long-term average annual turnover of 50%. The outlook for car growth remains unchanged. According to the financial report, Tesla’s revenue was reported at $16.93 billion, an annual increase of 42% and a quarterly decrease of 10%, which was lower than market expectations of $17.1 billion. It beat market expectations by $1.81.
Today’s key economic data:
- The number of Americans receiving unemployment benefits last week reported 251,000, expected 240,000, the previous value of 244,000
- The number of people receiving unemployment benefits in the United States reported 1.384 million last week, 1.34 million is expected, and the previous value was 1.333 million
- US Philadelphia Fed manufacturing index in July reported +12.3, expected -2.5, the previous value of -3.3
Wall Street Analysis:
Edward Park, chief investment officer at Brooks Macdonald, said optimism regarding economic growth had increased compared to previous months, but the key question was whether a major corporate earnings recession would be won by 2023.