2023-04-26 21:15:14
Technology stocks such as Alphabet and Microsoft reported good earnings, but First Republic Bank will face potential restrictions on borrowing by the Federal Reserve. The stock price fell to a new low, and bank stocks were in mourning.Dow JonesClosed nearly 230 points, the S & P fell nearly 0.4%,That fingerandfee halfThey received 0.47% and 0.57% respectively.
In political and economic news, the House of Representatives narrowly passed a bill drafted by Speaker McCarthy by a vote of 217 to 215 in the following-hours session on Wednesday, which proposed raising the federal government debt limit of $31.4 trillion by $1.5 trillion, but with conditions. It was a $4.5 trillion cut in government spending.
Before the bill was voted on, U.S. President Joe Biden said he would be happy to meet with McCarthy once more, but would not bow to Republican demands to negotiate the debt ceiling.
The White House later responded when the bill was passed that it was a reckless act to obtain extreme concessions (Democrats and the White House), and said that if the bill reached Biden’s desk, he would veto it.
South Korean President Yin Xiyue visited the United States on Wednesday. Yin Xiyue and Biden discussed jointly promoting peace and stability in the Taiwan Strait and ensuring freedom of navigation in the South China Sea and other regions.
Former US Treasury Secretary Summers (Lawrence Summers) said that cooling inflation might lead to a significant weakening of the US economy. Stimulus measures and low interest rates during the epidemic have caused inflation in the United States to jump from 2% to 5%. Unless the economy slows down sharply, it will be difficult for inflation to get close to the 2% target.
The performance of the four major indexes on Wednesday (26th):
- US stocksDow Jones IndexIt fell 228.96 points, or 0.68%, to close at 33,301.87.
- NasdaqThe index rose 55.19 points, or 0.47%, to close at 11,854.35.
- S&P 500 IndexIt fell 15.64 points, or 0.38%, to close at 4,055.99.
- Philadelphia SemiconductorThe index rose 16.71 points, or 0.57 percent, to close at 2,922.99.
Focus stocks
The five kings of technology were mixed. Amazon (AMZN-US) up 2.35%; Meta (META-US) up 0.89%; Apple (AAPL-US) fell 0.01%; Alphabet (GOOGL-US) down 0.13%; Microsoft (MSFT-US) surged 7.24%.
Dow JonesMore than half of constituent stocks were lower. Honeywell (HON US) down 2.58%; Merck (MRK-US) down 2.66%; Home Depot (HD-US) down 2.79%; Intel (INTC-US) rose 0.59%; Salesforce (CRM-US) up 0.45%.
fee halfConstituent stocks have their ups and downs. Micron (MU-US) rose 4.95%; Huida (NVDA-US) rose 2.72%; AMD (AMD-US) rose 2.55%; Applied Materials (AMAT-US) fell 0.27%; Texas Instruments (TXN-US) down 2.91%; Qualcomm (QCOM-US) rose 0.096%.
ADRs of Taiwan stocks closed higher. TSMC ADR (TSM-US) down 0.05%; ASE ADR (ASX-US) flat; UMC ADR (UMC-US) up 0.26%; Chunghwa Telecom ADR (CHT US) rose 0.90%.
Corporate News
First Republic Bank is committed to responding to the crisis caused by the outflow of more than $100 billion in deposits in the first quarter, but the house leak happened overnight. The U.S. government reported on Wednesday that it would not rescue the bank. Downgrading its rating might limit the bank’s access to lending facilities.
First Republic Bank (FRC-US) plummeted 29.75% to $5.69 per share, continuing to write a record low. The KBW regional bank index slipped 1.51 percent.
In recent weeks, seven analysts have downgraded Tesla stock from a “buy” rating, and Tesla (TSLA-US) fell 4.31% to $153.75 per share on Wednesday, with its market value falling below the $500 billion mark. Tesla’s dismal first-quarter results on Thursday, with nearly every metric missing analysts’ expectations and a sharp drop in its profit margins, underscored the consequences of an aggressive price-cutting strategy.
apple (AAPL-US) weakened 0.01 percent to $163.76 a share. Apple is rumored to contract all TSMC’s 3nm production capacity, but it is reported that TSMC’s supply is “tight” and has encountered problems in tools and production. The 3nm yield rate is regarding 55%, which has not yet reached the required level and cannot meet the upcoming Apple The need for new equipment.
Facebook parent company Meta (META-US) received a dividend of 0.89% to US$209.40 per share, and its stock price soared more than 11% following hours. Meta posted better-than-expected revenue results of $28.65 billion, beating analysts’ expectations of $27.66 billion. Meanwhile, Reality Labs, the company’s Metaverse division, posted an operating loss of nearly $4 billion.
Gaming giant Activision Blizzard (ATVI-US) plummeted 11.45 percent to $76.81 a share. British regulators have blocked Microsoft’s $69 billion takeover of Activision Blizzard, mainly to avoid hurting competition in the cloud gaming industry.
key data
- The initial monthly growth rate of durable goods orders in the United States in March was reported at 3.2%, expected to be 0.7%, and the previous value was -1.2%
- The initial value of the monthly growth rate of core durable goods orders in the United States in March was reported at 0.3%, expected – 0.2%, and the previous value was – 0.3%
- U.S. wholesale inventories increased by 0.1% in March, up from 0.1% previously
Wall Street Analysis
Amid fears that First Republic Bank will be the next regional bank’s “land mine,” Tobam SAS Institutional Deputy Chief Investment Officer Tatjana Puhan pointed out: “To what extent can central banks and regulators control market sentiment and show investors that they need to remain calm? Convincing savers that there is no need to flee to other banks, but so far the Fed has been very clear that they will keep raising rates as long as needed to curb inflation.”
John Woods, Chief Investment Officer of Credit Suisse Asia Pacific, said: “The market is focusing on some corporate earnings issues, but may overlook the impact of the economic deceleration that is currently going through, especially in the United States. We have seen a series that seems to indicate that the market is in risk aversion. technological signals of the environment.”
“The market is looking for where the economy and companies are going, and there are some good earnings reports, but investors realize that’s not enough to clarify the outlook,” said Lisa Erickson, head of public markets at U.S. Bank Wealth Management.
The numbers are all updated before the deadline, please refer to the actual quotation
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