The U.S. producer price index (PPI) fell in August, and U.S. bond yields fell slightly. The main U.S. stock index was volatile for most of Wednesday (14th). With support, in the last 20 minutes of late trading, bargain hunters rushed in, and the four major indexes reversed and closed in the red.
On the data front, there was relief following the US consumer price index (CPI) report for August shattered expectations for peaking inflation. The U.S. Labor Department on Wednesday reported an 8.7% annual increase in PPI in August, below market expectations of 8.8% and July’s 9.8%. The main reason for the fall in PPI in August highlights that the US inflationary pressure has taken a breather, but the increase in core PPI in August still exceeded expectations.
In terms of politics and economy, the White House said that it may start replenishing its Strategic Petroleum Reserve (SPR) when crude oil prices fall to around $80 per barrel. International oil prices closed higher, driving energy stocks to rise on Wednesday.
Railroad stocks were under pressure as unions representing freight railroads across the United States may start a strike on Sept. 16. Amid the looming threat of a railroad strike, Amtrak announced on Wednesday that it would cancel all long-distance trains on Thursday. The Association of American Railroads estimates that bringing nearly a third of U.S. freight to a standstill will also test the U.S. commodity supply chain once more, costing nearly $2 billion a day in trade losses and continuing to push up U.S. inflation.
In terms of geopolitics, the U.S. Senate Foreign Relations Committee voted 17 to 5 on Wednesday to approve the “Taiwan Policy Act” to strengthen U.S.-Taiwan relations, provide Taiwan with $4.5 billion in military aid within four years, and position Taiwan as a non-NATO The member’s main allies, the bill has now been sent to the House for review.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 610 million, and the number of deaths has exceeded 6.51 million. More than 12.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (14th):
Focus stocks
The five kings of science and technology are only black. apple (AAPL-US) rose 0.96%; Meta (META-US) ) fell 1.08%; Alphabet (GOOGL-US) rose 0.65%; Amazon (AMZN-US) rose 1.36 percent; Microsoft (MSFT-US) rose 0.091%.
Dow JonesConstituent stocks trade with each other. 3M (MMM-US) fell 2.44%; Honeywell (HON US) fell 2.71 percent; Chevron (CVX-US) rose 2.42%; Johnson & Johnson (JNJ-US) rose 2.06%; Merck (MRK-US) rose 1.59%.
half feeConstituent stocks recovered and moved higher. AMD (AMD-US) rose 0.55%; Applied Materials (AMAT-US) rose 0.28%; Qualcomm (QCOM-US) rose 2.08%; Texas Instruments (TXN-US) rose 1.60%; Intel (INTC-US) fell 0.38%; Micron (MU-US) fell 0.95%; NVIDIA (NVDA-US) fell 0.023%.
Taiwan stock ADR was mixed. TSMC ADR (TSM-US) rose 1.08%; ASE ADR (ASX-US) flat; UMC ADR (UMC-US) rose 2.24%; Chunghwa Telecom ADR (CHT US) fell 0.57%.
Corporate News
It is rumored that the latest iPhone and Macbook notebook processors that Apple plans to launch next year will use TSMC’s latest N3E enhanced version of the 3-nanometer process technology. TSMC ADR (TSM-US) rose 1.08% to US$79.66 per share, or 495.41 yuan per share, representing a discount-to-premium ratio of 3.21%.
Tesla (TSLA-US) received a 3.59% dividend to $302.61 per share. U.S. President Biden announced the approval of the first $900 million in funding for electric vehicle charging stations in 35 states as part of a $1 trillion infrastructure bill passed in November.
Nucor Steel forecast third-quarter earnings of between $6.30 and $6.40 a share, far below market expectations, due to lower profit margins and shipments. Nucor Steel (NUE-US) tumbled 11.33% to $120.71 a share, while the VanEck-Vectors Steel ETF slid 4.21% for its worst one-day performance in two months.
Starbucks (SBUX-US) climbed 5.53 percent to $92.70 a share. Starbucks released the “2025 China Strategic Vision” and launched a new value-oriented operational growth plan to increase its exposure to the Chinese market.
Moderna (Modena) (MRNA-US) shares rose 6.17 percent to $139.40 a share.
Johnson & Johnson (JNJ-US) rose 2.06 percent to $164.66 a share. Johnson & Johnson announced that its board of directors authorized a $5 billion treasury stock plan and reiterated its full-year forecast that adjusted earnings per share would range from $10.65 to $10.75.
Economic data
- The U.S. PPI annual growth rate in August was 8.7%, expected 8.8%, and the previous value was 9.8%
- US August PPI monthly growth rate reported -0.1%, expected -0.1%, the previous value -0.4%
- The annual growth rate of core PPI in the United States in August was 7.3%, expected to be 7.1%, and the previous value of 7.7%
- The monthly growth rate of core PPI in the United States in August was 0.4%, expected 0.3%, and the previous value was 0.3%
- The U.S. last week (as of 9/9) EIA crude oil inventory changes reported 2.442 million barrels, expected 833,000 barrels, and the previous value of 8.844 million barrels
- US last week (as of 9/9) EIA gasoline inventory changes reported -1.767 million barrels, expected -858,000 barrels, the previous value of 333,000 barrels
Wall Street Analysis
“It’s a tug-of-war, everyone is waiting for the next economic data on inflation, and Friday’s data on inflation expectations from the University of Michigan is important,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.
“The failure of U.S. stocks to break above the morning highs must have disappointed the bulls,” said Matt Maley, market strategist at Miller Tabak. “The market always seemed to be able to bounce back quickly during the summer sell-off, but it failed to do so Wednesday, with some short-term swings. Traders appear to be moving further away from the market.”
Sam Stovall, investment strategist at CFRA Research, said: “History tells us that as long as U.S. stocks are down 4% in a single day, we usually see a rebound of regarding 1% the next day, followed by a consolidation next month, and then a The uptrend resumed following three months.”
Mark Haefele, chief investment officer at UBS Global Asset Management, commented: “Tuesday’s sell-off is a reminder that a sustained rebound may require clear evidence that inflation is on a downward trend. With macroeconomic and policy uncertainty rising, it is expected that the next few The market will continue to be volatile for months.”
The figures are updated before the deadline, please refer to the actual quotation.